Tenn. Comp. R. & Regs. 1640-01-01-.05 - STANDARDS FOR INSTITUTIONAL REVIEWS AND ERROR RESOLUTION

(1) TSAC shall conduct periodic program reviews to evaluate the general operation of the financial aid office relative to the institution's management of the TSAA:

(a) The Chief Executive Officer (CEO) of the institution typically will be notified of the visit four-to-six weeks in advance; the exact date for the visit usually will be scheduled with the Director of Financial Aid. Extenuating circumstances such as a request from the U.S. Department of Education or the school's regulatory board may preclude TSAC from scheduling the review in advance.

(b) At the conclusion of the visit, the reviewer shall meet with the CEO, or his or her representative(s), and the Director of Financial Aid to discuss the preliminary findings and recommendations resulting from the visit.

(c) Following the exit interview, a preliminary report shall be sent to the CEO of the institution requesting a response within thirty (30) days. One extension of up-to thirty (30) days may be requested in writing by the institution.

(d) The final report of findings incorporating the institution's response shall be transmitted to the CEO within thirty (30) days of receipt of the institution's response or within thirty (30) days of the date the response should have been received. The final report shall, when necessary, request restitution and/or corrective action.

(2) TSAC shall resolve disputes related to the final report of an institution's Program Review as noted below:

(a) The institution shall be allowed an additional thirty (30) day period to request a hearing and/or to provide additional documentation for review by TSAC's Executive Director.

1. If the Executive Director's review of the additional documentation does not resolve the dispute, the institution may request a hearing within thirty (30) days of the Executive Director's decision.

2. If a hearing is requested, such hearing shall be requested in writing and sent to the Executive Director. The hearing shall be conducted in accordance with Tenn. Comp. R. & Regs. 1360-04-01, Uniform Rules of Procedure for Hearing Contested Cases Before State Administrative Agencies, Rules of Secretary of State, by the TSAC Appeals Committee. Such Appeals Committee, composed of five (5) members of the TSAC Board of Directors, appointed as needed by the Chairman, shall within a reasonable period of time, set a date for the hearing. The Appeals Committee shall, in consultation with U.S. Department of Education officials, when necessary, render a decision within thirty (30) days of the hearing.

(b) Final resolution, which may include financial restitution and/or a plan for corrective action to prevent recurrence, must be made within thirty (30) days of the Appeals Committee's decision.

(c) Should the institution fail to respond within forty-five (45) days of the final report or to take corrective action or to make restitution within thirty (30) days after the decision from the Appeals Committee hearing, TSAC shall begin proceedings to suspend the institution from participation in TSAC programs for sixty (60) days. This suspension will be effective twenty (20) days from receipt by the school of TSAC's notification of suspension. Notification of suspension, along with copies of all findings and responses, will be sent to the U.S. Department of Education.

(d) Should the school fail to take corrective action or to make restitution within forty-five (45) days of the suspension, TSAC shall terminate the institution by informing the institution that within twenty (20) days from receipt of notification, the institution is terminated from all TSAC programs.

(e) If an institution is suspended or terminated during a term, all enrolled students attending that institution who received TSAA award letters before the effective date of the suspension or termination will be paid for that term.

(f) Reinstatement of eligibility may be requested of the TSAC Board after a period of one (1) year after date of termination, but only if the institution is eligible for other Title IV programs.

Notes

Tenn. Comp. R. & Regs. 1640-01-01-.05

Original rule filed July 10, 1984; effective October 14, 1984. Amendment filed February 9, 1990; effective May 29, 1990. Amendment filed September 3, 1992; effective December 29, 1992. Repeal and new rule filed November 10, 2010; effective April 30, 2011. Amendments filed March 1, 2013; August 29, 2013. Amendment filed July 29, 2015; effective 10/27/2015.

Authority: T.C.A. §§ 49-4-201 and 49-4-204.