Kentucky Administrative Regulations › Title 11 - KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY › Chapter 4 - Kentucky Higher Education Assistance Authority › Section 11 KAR 4:020 - Disapproval, assessment of liabilities, limitation, suspension or termination of eligibility to participate in authority programs

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				164.746(6),
				164.748(13),
				(14),
				34 C.F.R.
				682.401(b)(10)(i)(C),
				20 U.S.C.
				1078(b)(1)(T), (U),
				1082(h)(2),
				(3)
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS 164.748(5) and
				(6) authorize the authority to enter into
				contracts with eligible educational institutions and lenders to provide for
				administration of student financial assistance programs and
				KRS
				164.748(13) authorizes the
				authority to take emergency action, disapprove, limit, suspend or terminate
				participation.
				KRS
				164.746(6) requires the
				board to adopt administrative regulations in connection with administration of
				the authority's programs. Federal statutes,
				20 U.S.C.
				1078(b)(1)(T) and (U), and
				regulations,
				34 C.F.R.
				682.401(b)(10)(i)(C),
				governing the authority's insured student loan program, require the authority
				to establish, disseminate, and enforce criteria, rules, or administrative
				regulations which are substantially the same as administrative regulations with
				respect to emergency action, limitation, suspension, or termination issued by
				the secretary. This administrative regulation establishes the ministerial
				functions of authority officers and the conditions and procedures under which
				the authority or its delegated officers may initiate action to assess
				liabilities, withhold funds under emergency action, or disapprove, limit,
				suspend or terminate the participation of eligible educational institutions or
				eligible lenders in any of the student financial assistance programs
				administered by the authority.
Section
			 1. Definitions.
(1) "Authority"
			 is defined by
			 KRS
			 164.740(1).
(2) "Authority program" means a program of
			 student financial assistance administered or funded by the authority pursuant
			 to
			 KRS
			 164.740 through
			 164.785
			 or the federal act.
(3) "Board" is
			 defined by
			 KRS
			 164.740(2).
(4) "Delegated officer" means the executive
			 director, general counsel, chief operating officer, or any other individual the
			 board may designate to whom the board has delegated ministerial
			 responsibilities set forth in this administrative regulation.
(5) "Eligible institution" is defined by
			 KRS
			 164.740(4).
(6) "Eligible lender" is defined by
			 KRS
			 164.740(5).
(7) "Federal act" is defined by
			 KRS
			 164.740(8).
(8) "Funds" means any money, commitments to
			 provide money, and commitments of insurance under any authority
			 program.
(9) "Insured student loan"
			 is defined by
			 KRS
			 164.740(11).
(10) "Limitation" means:
(a) A limit on the number or percentage of
			 students enrolled or planning to enroll in a participating institution who may
			 receive funds through an authority program;
(b) A limit, for a stated period of time, on
			 the percentage of a participating institution's total receipts from tuition and
			 fees derived from authority program funds;
(c) A requirement that an institution that is
			 already participating obtain a bond, in a specified amount, to assure its
			 ability to meet its financial obligations to students, lenders and the
			 authority funds;
(d) A limit on the
			 number or amount of insured loans that may be made or held by a participating
			 lender or that may be received by students at a participating institution;
			 or
(e) Any special conditions or
			 procedures required in the administration of authority programs.
(11) "Participating institution"
			 is defined by
			 KRS
			 164.740(14).
(12) "Participating lender" is defined
			 KRS
			 164.740(15).
(13) "Secretary" is defined by
			 KRS
			 164.740(20).