005.29.24 Ark. Code R. 006 - Division of Higher Education Rules Governing The Arkansas Future Grant Program
POLICY STATEMENT
These rules shall be known as the Division of Higher Education Rules Governing the Arkansas Future Grant Program. This policy addresses the student eligibility criteria, method for recipient selection, continuing eligibility requirements, procedures for making payments to an approved institution of higher education, and other administrative procedures necessary for operation of the program.
APPLICABLE ARKANSAS CODE
Ark. Code Ann. 6-82-1801 ET. Seq.
1.00
PROGRAM DEFINITIONS
1.01 "Approved institution of higher
education" means an institution of higher education, approved by the Division
of Higher Education to participate in the Arkansas Future Grant Program, that
is:
1.01.1 A state-supported two-year or
four-year college or university;
1.01.2 A state-supported technical
institute;
1.01.3 An approved
state-supported school of nursing; or
1.01.4 A private, nonprofit two-year or
four-year college or university.
1.02 "Approved state-supported school of
nursing" means a state-supported school of nursing with its primary
headquarters located in Arkansas that:
1.02.1
Prepares students as registered nurses;
1.02.2 Grants nursing diplomas;
1.02.3 Is eligible to participate in the
federal student aid programs of the Higher Education Act of 1965,
20 U.S.C. §
1070 et seq.;
1.02.4 Is approved by the Arkansas State
Board of Nursing;
1.02.5 Has been
approved by the Division of Higher Education as eligible to participate in the
Arkansas Future Grant Program; and
1.02.6 Is not a two-year or four-year college
or university.
1.03
"Federal student financial assistance" means scholarships or grants awarded to
a student as a result of:
1.03.1 An approved
Free Application for Federal Student Aid, including without limitation a Pell
Grant; or
1.03.2 The student's or
other family member's service in the United States Armed Forces, including
without limitation the Army National Guard or Air National
Guard.
1.04 "Private
scholarship" means a scholarship or grant awarded by a private entity or
donor.
1.05 "Regional high-demand
field" means any field of study identified as:
1.05.1 In demand by the Arkansas Division of
Workforce Services as published on its annual regional Projected Employment
Opportunities List; or
1.05.2 In
high demand by an approved institution of higher education and approved by the
Division of Higher Education.
1.06 "State-supported student financial
assistance" means a state-supported scholarship, grant, tuition waiver, or
tuition reimbursement, funded with state funds or net proceeds from the state
lottery, awarded by:
1.06.1 The Division of
Higher Education; or
1.06.2 A
scholarship or grant awarded by an approved institution of higher education in
this state, funded in whole or in part by state funds, including without
limitation:
1.06.2.1 Scholarships awarded on
the basis of entrance exam scores or high school academic
achievement;
1.06.2.2 Tuition
waivers based on:
1.06.2.2.1 Age,
1.06.2.2.2 Military service,
1.06.2.2.3 Occupation, or
1.06.2.2.4 Other factors;
1.06.2.3 Performance scholarships
for band, musical performing groups, arts, theater, forensics, and similar
activities that are not awarded on the basis of entrance exam scores or high
school academic achievement; and
1.06.2.4 Any other publicly funded program
under which students are not charged or are reimbursed by the approved
institution of higher education for:
1.06.2.4.1 Tuition;
1.06.2.4.2 Fees;
1.06.2.4.3 Books; or
1.06.2.4.4 Other costs of
attendance.
2.00
ELIGIBILITY REQUIREMENTS
2.01 A student is eligible for an Arkansas
Future Grant if the student is an Arkansas resident who meets one (1) of the
following requirements:
2.01.1 Has either:
2.01.1.1 Graduated from an Arkansas:
2.01.1.1.1 Public high school;
2.01.1.1.2 Private high school; or
2.01.1.1.3 Home school under §
6-15-501 et seq.;
or
2.01.1.2 Received a
high school equivalency diploma approved by the Division of Workforce Services;
or
2.01.2 Verifies that
he or she has resided in Arkansas for the three (3) years immediately preceding
application for the grant, and has either:
2.01.2.1 Graduated from an out-of-state:
2.01.2.1.1 Public high school;
2.01.2.1.2 Private high school; or
2.01.2.1.3 Home school recognized by another
state; or
2.01.2.2
Received a high school equivalency diploma approved by another
state;
2.01.3 Is enrolled
part-time or full-time at an approved institution of higher education, in a
program of study that leads to an associate degree or a certification in a:
2.01.3.1 Science, technology, engineering,
accounting, finance, nursing, education, or mathematics field, including
without limitation:
2.01.3.1.1 Computer
science;
2.01.3.1.2 Information
technology;
2.01.3.1.3 Data
analysis; or
2.01.3.1.4 Graphic
design;
2.01.3.2 Regional
high-demand field; or
2.01.3.3
State high-demand field; and
2.01.4 Has completed and submitted to the
United States Department of Education a Free Application for Federal Student
Aid or a subsequent application required by the United States Department of
Education for federal financial aid.
3.00
CONTINUED ELIGIBILITY
REQUIREMENTS
3.01 A student may
continue to be eligible until the student has:
3.01.1 Received the grant for five (5)
academic semesters;
3.01.2 Obtained
an associate degree;
3.01.3 Failed
to maintain satisfactory academic progress, as determined by the approved
institution of higher education in which the student is enrolled; or
3.01.4 Failed to complete the mentoring or
community service requirements under the Grant Recipient Responsibilities
section of this rule.
4.00
GRANT AWARD AMOUNTS
4.01 An Arkansas Future Grant shall be in an
amount equal to the tuition, fees, and other charges incurred by a student who
meets the requirements under the Eligibility Requirements and Continuing
Eligibility Requirements sections of this rule to attend an approved
institution of higher education, less the amount the student receives in:
4.01.1 State-supported student financial
assistance;
4.01.2 Federal student
financial assistance; and
4.01.3
Private scholarships.
4.02 If the approved institution of higher
education in which the student is enrolled is a state supported four-year
institution of higher education, or a private, nonprofit four-year institution
of higher education, the total amount of tuition, fees, and other charges under
subdivision 4.01 of this section shall be calculated as the average cost of
tuition, fees, and other charges, at approved institutions of higher education
that are state-supported two-year institutions of higher education, or private,
nonprofit two-year institutions of higher education.
4.03 The Division of Higher Education shall
disburse the grant directly to the approved institution of higher
education.
4.04 The division shall
award grants under this rule in the order in which the division receives
applications from eligible students and based on availability of funds, to
include summer terms, semesters, quarters, or their equivalent, at the
postsecondary institution in which the student is enrolled.
5.00
GRANT HOLD
5.01 The Division of Higher Education may
approve a grant hold for a period of twenty-four (24) months or less.
5.01.1 The reasons for a grant hold may
include without limitation:
5.01.1.1 A medical
condition of the student or a member of the student's immediate family that, on
the basis of a physician's good-faith judgment, necessitates the student or the
student's immediate family member, to be hospitalized or receive outpatient or
home-based medical care, or to recuperate until released by the attending
physician;
5.01.1.2 A personal or
family emergency that requires the student to:
5.01.1.2.1 Attend the funeral of an immediate
family member; or
5.01.1.2.2 Visit
a relative of the student if the relative has a medical condition in which
death is possible or imminent;
5.01.1.3 Military service under Arkansas Code
§
6-61-112; or
5.01.1.4 A commitment of twelve (12) to
twenty-four (24) months for service in a national or international humanitarian
project, sponsored by a nonprofit corporation organized with a charitable or
educational purpose.
5.01.1.4.1 The student's
commitment shall be expressed in a written agreement with the nonprofit
organization, including the terms of completion for the student's service on
the related project.
5.01.1.4.2 The
division shall release a grant hold if the division determines that the student
did not complete the commitment under the written
agreement.
6.00
GRANT RECIPIENT
RESPONSIBILITIES
6.01 A student who
receives an Arkansas Future Grant shall enter into a written agreement with the
Division of Higher Education to:
6.01.1
Receive monthly mentoring from a mentor from an organization determined by the
division;
6.01.2 A mentor under
subdivision 6.01.1 of this section shall:
6.01.2.1 Receive annual mentoring training:
6.01.2.1.1 Developed by the division;
and
6.01.2.1.2 Provided by a local
volunteer group approved by the division; and
6.01.2.2 Certify to the division that at
least one (1) time each semester the mentor has provided mentoring services by
telephone, email, or in person to each student he or she is
mentoring;
6.01.3
Complete at least ten (10) hours of community service each semester the student
receives a grant;
6.01.3.1 A student may
select a community service project that meets requirements developed by the
division.
6.01.3.1.1 An approved institution
of higher education may provide community services opportunities designed to
benefit the approved institution of higher education community or the broader
local community.
6.01.3.2
A student shall certify his or her community service to the approved
institution of higher education by the last regular day of the semester the
student received the grant; and
6.01.4 Reside in this state for three
consecutive (3) years and be employed beginning within six (6) months after
receiving an associate degree or a certification.
6.01.4.1 The division may defer the
requirement under 6.01.4 of this section if:
6.01.4.1.1 The Division of Higher Education,
in consultation with the Division of Workforce Services, determines that there
was no employment position available that would reasonably enable the student
to meet this requirement; or
6.01.4.1.2 Special circumstances as
determined by the division of Higher Education exist.
6.01.4.2 After the period of deferral, the
student shall begin, or resume working in this state or become subject to
repayment under 6.02 of this section.
6.02 The written agreement under 6.01 of this
section shall provide that the grant converts into a loan and the student shall
repay the grant amount:
6.02.1 On a pro rata
basis at an interest rate and on a schedule as determined by the division, for
each year the student does not reside in this state for three (3) consecutive
years, and become employed beginning within six (6) months after receiving an
associate degree or a certification; or
6.02.2 In its entirety, at an interest rate
and on a schedule as determined by the division, if the recipient does not
comply with the written agreement under 6.01 of this section.
6.03 It is the recipient's
responsibility to notify the division of any change in status within twenty-one
(21) days.
6.03.1 Failure to notify the
division of a change of status may affect future eligibility.
6.03.1.1 Change of status will include:
6.03.1.1.1 Change in name;
6.03.1.1.2 Change in address; and
6.03.1.1.3 Change in institution.
7.00
COLLECTION OF LOAN
7.01 Accounts
will be retained by the Division of Higher Education's Financial Aid Division
until the individual is no longer eligible for deferment, at which point the
account will be turned over to a vendor for repayment.
7.01.1 The student will be notified by mail
that their account is being placed with a vendor for collections and receive a
loan amortization schedule.
7.01.2
The account will remain with the vendor until repaid or 120 days past due.
7.01.2.1 Loan recipients who are determined
by the division to be one hundred twenty (120) days delinquent will be mailed
their first letter of notification ten (10) days after the installment payment
is due.
7.01.2.2 If payment is not
forthcoming within sixty (60) days from the original payment due date, a second
letter of notification will be sent to the loan recipient declaring their
account is delinquent and requesting that the account be immediately brought up
to date.
7.01.2.3 If the loan
recipient has not responded within ninety (90) days from the original payment
due date, the third and final letter of notification will be sent to the
recipient informing them that the account will officially be in default if
outstanding payments are not made within thirty (30) days.
7.02 Skip Tracing Mechanisms
7.02.1 The division will use the following
steps to locate recipients if communications are returned as undelivered:
7.02.1.1 Contact the Motor Vehicle Division
of the Arkansas Department of Finance and Administration;
7.02.1.2 Contact references listed on the
recipient's application;
7.02.1.3
Utilize telephone directory or check with directory assistance in the area of
the recipient's last known address;
7.02.1.4 Contact institutional offices
(alumni office, admissions office, registrar's office, fraternity or sorority,
and the department that the recipient majored in) at the campus where the
recipient last attended;
7.02.1.5
Contact creditors, such as credit card companies, credit bureaus, or GSL
lender;
7.02.1.6 Contact
recipient's:
7.02.1.6.1 Field of
study;
7.02.1.6.2 Professional
organization;
7.02.1.6.3 Union;
or
7.02.1.6.4 Licensing
board;
7.02.1.7 Contact
post office;
7.02.1.8 Contact
utility companies; and,
7.02.1.9
Contact Chamber of Commerce.
7.03 Credit Reporting Agencies
7.03.1 Defaulted recipients will be reported
to the following credit reporting agencies:
7.03.1.1 CSC Credit Reporting Services,
Inc.;
7.03.1.2 TRW Credit Data;
and
7.03.1.3 Trans Union Credit
Reporting.
7.03.2 Forms
for reporting defaulted loan recipients are located in the collections file.
7.03.2.1 The division will respond promptly
to any inquiries it receives from credit reporting agencies concerning
delinquent or defaulted loan recipients.
7.04 State Income Tax Set Off
7.04.1 By the authority of
Acts 1993 , No.
345 , the division has been included as a claimant
agency for the setoff of debts against state tax refunds.
7.05 Litigation
7.05.1 No sooner than thirty (30) days after
sending the third letter of notification, the division shall institute a civil
suit against the recipient for repayment of the loan.
7.05.1.1 Small claims courts will be used to
satisfy debts of accounts up to three thousand dollars ($3,000.00).
7.05.1.2 If the account is over three
thousand dollars and one sent ($3,000.01), the division must use circuit
court.
7.05.1.3 If the account is
three thousand dollars and one cent ($3,000.01) or above, the division may
choose to use small claims courts and waive the difference because of the
expense involved in going to Circuit Court.
7.05.1.4 If the division chooses to waive the
difference, it cannot later try to collect the difference.
7.05.1.5 Forms to take the recipient to small
claims courts are requested from the recipient's county of residence.
7.06 Write-Offs
7.06.1 Arkansas Future Grants that convert to
loans may be written off as uncollectible if the division shows due diligence
to satisfy the collection of the debt, and documents in the recipient's file
that:
7.06.1.1 The cost of litigation would
exceed the likely recovery if litigation were commenced; or
7.06.1.2 The recipient does not have the
means to satisfy a judgment on the debt, or a substantial portion
thereof.
7.06.2 Proof of
due diligence collection activities must be submitted to the Administrator of
the Department of Finance and Administration and approval from the
Administrator must be received before Arkansas Future Grant loan accounts may
be written off.
7.07
Nonpayment Penalties
7.07.1 Loan recipients
who fail to meet their repayment obligations may have added to their total
obligation any costs for collection of the debt.
8.00
INSTITUTIONAL
RESPONSIBILITIES-COLLEGE AND UNIVERSITY RESPONSIBILITIES
8.01 Administrative Agreement
8.01.1 The chief executive officer of the
eligible institution is responsible for appointing one representative from the
financial aid office to act as administrator of the Arkansas Future Grant
Program and to receive all communications, forms, etc.
8.01.1.1 This representative is responsible
for verification, data and compliance with all program rules.
8.01.2 The institution must comply
with all rules and regulations in order to maintain continued eligibility
status.
8.02 Disbursement
Records
8.02.1 The institution shall maintain
information on the student indicating disbursement of scholarship
funds.
8.03 Institutional
Verification
8.03.1 The institution shall
provide certification of enrollment in an eligible program of study, and
enrollment in courses that will meet satisfactory academic progress standards,
as of the eleventh day of classes, by completing a verification roster each
semester after registration.
8.03.1.1 The
verification roster is an alphabetical listing by institution of all persons
receiving the award for a given academic term.
8.03.1.2 The certifying official is
responsible for completing the verification rosters each semester or
trimester.
8.03.1.3 The Division of
Higher Education shall provide electronic verification rosters to the Financial
Aid Administrator for each semester or trimester as needed.
8.03.2 The electronic verification roster
shall be returned to the division by November 1 for the fall term and by March
15 for the spring term.
8.03.3 The
division shall also provide electronic continuing eligibility rosters to the
financial aid administrator before the end of the fall and spring term.
8.03.3.1 The rosters shall be returned to the
division no later than January 15 based on the fall semester and June 1 based
on the spring semester to ensure that adequate time is provided to notify
students of their status in the program.
8.04 Deadlines for Disbursement of Funds
8.04.1 The deadline for disbursement of funds
is no later than ten (10) days after receipt of funds.
8.04.1.1 Any outstanding funds not disbursed
by these dates must be returned to the division.
8.04.1.2 For those students whose
applications are received by the division too late to allow disbursement by
these dates, disbursement will be made within ten (10) working days of receipt
of the verification roster and electronic transfer of funds.
8.05 Due Diligence
8.05.1 The institution will exercise due
diligence in providing complete, accurate, and timely information as requested
by the division on any Arkansas Future Grant recipient or former
recipient.
8.05.2 In addition, the
institution will exercise due diligence in complying with all the rules and
regulations of the Arkansas Future Grant Program.
8.05.3 The division shall periodically review
the institution's records concerning this program in an effort to exercise its
due diligence requirements as a steward of state funds.
Notes
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