Illinois Administrative Code › Title 23 - EDUCATION AND CULTURAL RESOURCES › Part 2720 - FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) › Subpart A - FEDERAL LOAN PROGRAMS: THE FEDERAL STAFFORD LOAN PROGRAM, FEDERAL PLUS PROGRAM, FEDERAL SUPPLEMENTAL LOANS FOR STUDENTS (SLS) PROGRAM, AND FEDERAL CONSOLIDATION LOAN PROGRAM › Section 2720.30 - Institutional Eligibility

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Institutional eligibility requirements are specified in federal regulations.
				Eligible postsecondary institutions include universities, colleges, graduate
				schools, schools of nursing, business, trade, technical and vocational schools.
				Correspondence institutions/programs are not eligible.
b) Institutions must have executed a Program
				Participation Agreement with ED in order to participate in ISAC-guaranteed loan
				programs. (See
				34 CFR
				668.14.)
c) An institution may not engage in loan
				origination activities. This prohibition shall not apply if the institution has
				an ED-approved Origination Agreement on file with ISAC and the institution was
				previously approved as an educational lender as required by federal
				regulations.
d) Approved
				institutions shall provide ISAC with the current enrollment status of students
				whom the institution has certified as eligible borrowers in accordance with
				federal regulations. (See
				34
				CFR 682.610(c).)
e) Applicant and approved institutions must
				demonstrate administrative capability and financial responsibility, as defined
				by federal regulations, in order to begin and to continue participation in
				ISAC-guaranteed loan programs. (See, e.g.,
				34 CFR
				668.14,
				668.15
				and
				668.16.)
f) Institutions wishing to participate in
				ISAC-guaranteed loan programs shall submit an application that shall include,
				but not be limited to: documentation from the U.S. Department of Education (ED)
				and the state in which it operates demonstrating authorization to offer
				educational programs; previous audit and compliance reviews conducted by other
				guarantors and ED; proof of accreditation; audited financial statements;
				student catalogs; promotional materials; documentation relating to student
				withdrawal rates; and other similar information requested by ISAC to show the
				institution's qualifications for participation. Participation will be decided
				by an examination of application materials and a determination of compliance
				with federal laws and regulations and State statutes and rules. Institutions
				may appeal an administrative decision denying participation or limiting
				eligibility in accordance with ISAC appeal procedures. (See 23 Ill. Adm. Code
				2700.70.)
				Institutions denied participation shall be eligible to reapply one year from
				the date of the initial ISAC letter denying eligibility.
g) Institutions not maintaining the standards
				of administrative capability or financial responsibility demonstrated in their
				original applications for participation, or required by federal regulations,
				may be subject to administrative limitation, suspension or termination
				proceedings. (See 23 Ill. Adm. Code 2790.)
h) A foreign postsecondary institution,
				located outside the United States, is eligible to participate in
				ISAC-guaranteed loan programs provided it produces evidence to ISAC of current
				eligibility with ED (e.g., Program Participation Agreement, Institutional
				Eligibility Notice, etc.) or documentation of such eligibility is available
				directly from ED. (See
				34
				CFR 668.15(h).)