(a) A higher education applicant who has
defaulted on an educational loan guaranteed or reinsured by the Federal
government, the government of any state or institution is ineligible for an
award or a disbursement of funds unless the applicant has repaid the loan in
whole or in part and, in the judgment of the Agency, did not make the repayment
merely to gain grant eligibility or unless the applicant otherwise shows good
cause why grant eligibility should be reinstated. This includes programs
administered by the United States Department of Education or PHEAA when awards
have been converted to loans due to failure to meet eligibility or service
requirements and the loan is in default status.
(b) Applicants denied eligibility under this
section shall be entitled to review of the denial in accordance with the
procedure for review and appeals as provided in §§
121.7 and
121.8 (relating to notice of
denial and preliminary review procedures; and applicant and recipient appeals
and hearings).
Notes
The
provisions of this § 121.4 adopted February 27, 1969; amended February 16,
1973, effective 2/17/1973, 3
Pa.B. 325; amended November 23, 1973, effective 11/24/1973, 3 Pa.B. 2719; amended December 27,
1974, effective 12/28/1974, 4
Pa.B. 2699; amended August 22, 1975, effective 8/23/1975, 5 Pa.B. 2189; amended June 19, 1981,
effective 6/20/1981, 11 Pa.B.
2116; amended March 26, 1982, effective 3/27/1982, 12 Pa.B. 1043; amended July 31,
2015, effective 8/1/2015, 45
Pa.B. 4163.
The provisions of this § 121.4 issued under the
act of July 12, 1981 (P. L. 264, No. 89) (24 P. S. §§
5102.1 and
5104(1.2)); amended under
section 6(e) of the act of January 25, 1966 (P. L. 1546, No. 541)
(24
P. S. §
5156(e)).
This section cited in 22 Pa. Code §
121.151 (relating to application
of existing Agency regulations); 22 Pa. Code §
121.201 (relating to application
of existing Agency regulations); 22 Pa. Code §
121.302 (relating to application
of existing Agency regulations); and 22 Pa. Code §
121.401 (relating to application
of existing agency regulations).
