California Code of Regulations › Title 5 - Education › Division 7.5 - Private Postsecondary Education › Chapter 6 - Student Tuition Recovery Fund › Article 3 - Payments from the Fund › Section 76210 - Claims Amount, Payment and Denial

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A student seeking reimbursement under the
				  Fund that includes student loans as part of the claim shall make reasonable
				  attempts to obtain a loan discharge directly from the loan holder before the
				  Bureau will complete the processing of the student's application for payment
				  under section
				  76200.
(b) The Bureau may negotiate with a lender,
				  holder, guarantee agency, or the U.S. Department of Education for the full
				  compromise or write-off of student loan obligations to relieve students of
				  economic loss and, if possible, to reduce the liability of the Fund for the
				  payment of claims.
(c) The Bureau
				  may pay a student's claim directly to the lender, holder, guarantee agency, or
				  U.S. Department of Education as permitted by law.
(d) If the Bureau grants the claim, the
				  amount of the payment is measured by the total amount of the student's economic
				  loss, as defined in Section
				  76000, less the amount of any
				  refund, reimbursement, indemnification, restitution, compensatory damages,
				  settlement, debt forgiveness, discharge, cancellation, compromise or any other
				  benefit received by, or on behalf of, the student that is related to the
				  economic loss. The amount of the payment is not dependent on, or necessarily
				  limited to, the amount of refund the student would have received from the
				  institution if the student had voluntarily withdrawn. The Bureau cannot pay any
				  claim to or for a student without a social security number or a taxpayer
				  identification number.
(e) In
				  addition to the reductions in (d) above, the Bureau may reduce the amount of
				  the payment by the value of the benefit, if any, of the education obtained by
				  the student before the closure of the institution.
(f) For a student who suffers educational
				  opportunity loss whose charges were paid by a third-party payer, the Bureau
				  will pay the student's charges at a subsequent institution up to the original
				  third-party payer benefit once the student has exhausted his or her eligibility
				  with the original third party-payer benefit. The subsequent institution must be
				  eligible to receive the same third-party payer benefit as the original
				  institution or program, and the Bureau must have evidence of the student's
				  enrollment at the subsequent institution.
(g) If a student participated in a teach-out,
				  the following conditions also apply:
(1) If
				  the student withdraws from the teach-out institution within the first two weeks
				  of enrollment, the student's economic loss is calculated as though the student
				  never received the teach-out.
(2)
				  If the student withdraws from the teach-out institution after the first two
				  weeks of enrollment, the student's economic loss includes only a pro rata
				  portion of charges for the hours of the education service paid for, but not
				  received from, either institution.
(3) If the teach-out institution provides all
				  of the remaining instruction that the closed institution had represented it
				  would provide, the student's economic loss shall not include any amount the
				  student paid to the closed institution specifically for instruction.
(4) Regardless of participation in a
				  teach-out, a student may recover economic losses other than those specifically
				  related to the instruction.