Illinois Administrative Code › Title 23 - EDUCATION AND CULTURAL RESOURCES › Part 2790 - LIMITATION, SUSPENSION AND TERMINATION (L,S & T) PROCEEDINGS › Section 2790.10 - Summary and Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
a) This Part
			 establishes rules for the limitation, suspension or termination of an otherwise
			 eligible institution or applicant participating in any or all of the student
			 assistance programs administered by the Illinois Student Assistance Commission
			 (ISAC). These rules apply to an applicant who and an institution which violates
			 the provisions of the statutes, rules, regulations, special arrangements,
			 agreements or limitations set forth in Lender Agreements or Program
			 Participation Agreements and the Higher Education Act of 1965, as amended ( 20
			 USCA 1070 et seq.), including but not limited to: the provisions dealing with
			 the Guaranteed Student Loan Programs ( 20 USCA 1071 ); Need Analysis ( 20 USCA
			 1087kk ); General Provisions Relating to Student Assistance Programs ( 20 USCA
			 1088 ); Teacher Scholarships and Fellowships ( 20 USCA 1111 ); and the
			 regulations of the U.S. Secretary of Education relating to student assistance
			 programs, under the Higher Education Act of 1965, as amended, including but not
			 limited to: Institutional Eligibility ( 34 CFR 600 ); Paul Douglas Teacher
			 Scholarship Program ( 34 CFR 653 ); Student Assistance General Provisions ( 34
			 CFR 668 ); Guaranteed Student Loan and PLUS Programs ( 34 CFR 682 ); and the
			 State Student Incentive Grant Program ( 34 CFR 692 ).
b) This Part establishes rules which govern
			 the limitation, suspension or termination proceedings. Additional rules and
			 definitions are contained in General Provisions, 23 Ill. Adm. Code
			 2700.
c) The purpose of this Part
			 is to protect the integrity of the programs and to guard against losses on
			 behalf of the applicant, the lender, the school, ISAC or the Federal
			 Government.
d) ISAC's failure to
			 invoke the provisions contained in this Part does not, however, automatically
			 imply compliance or lessen an applicant's or an institution's obligation to
			 follow federal or State rules and regulations governing scholarships, grants,
			 and loan programs. Any action taken under this Part will not affect an
			 applicant's or an institution's responsibility to fulfill the requirements of
			 the Higher Education Act, federal regulations or ISAC rules, published policies
			 and procedures applicable to outstanding scholarships, grants and loan
			 programs. Further, any action taken under this Part will not affect an
			 applicant's or an institution's rights, if any, to benefits or payments that
			 are based on prior participation in the programs.
e) This Part does not apply to:
1) a determination that an institution fails
			 to meet the definition of an institution of higher education, a proprietary
			 institution of higher education, a postsecondary vocational institution, as
			 defined in Section 481 of the Higher Education Act of 1965, as amended ( 20
			 USCA 1085(c) ), or an eligible lender, as defined in Section 435(d) of the
			 Higher Education Act of 1965, as amended ( 20 USCA 1085(d) );
2) a determination of a school's loss of
			 eligibility by the U.S. Secretary of Education due to its default experience
			 (see Section 435(a)(2) of the Higher Education Act of 1965, as
			 amended);
3) any administrative
			 action taken by the U.S. Department of Education (ED) against a lender (
			 34 CFR 682.700
			 - 682.713 ), an
			 educational institution (
			 34 CFR
			 668.81 -
			 668.98
			 ) or an individual ( 34 CFR
			 85.300 -
			 85.420 );
4) any administrative action taken by the
			 Illinois Department of Professional Regulation, the Illinois State Board of
			 Education or the Illinois Board of Higher Education terminating, suspending or
			 limiting an educational institution's authority to offer educational programs
			 within the State of Illinois; or
5)
			 any administrative action taken by a nationally-recognized accreditation
			 association (see Section 496 of the Higher Education Act of 1965, as amended)
			 terminating, suspending or limiting an educational institution's accreditation
			 status.
In any such case, ISAC shall terminate the participation of the
				institution by sending notice of such termination, certified mail return
				receipt requested (see Section
				2790.80
				).