reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1401 - Definitions; A, C

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Academic year" means a period of time
				  during which a student borrower progresses from one level of class standing to
				  the next higher level or 7 months.
(b) "Act" means title IV, part B, of the
				  higher education act of 1965, as amended, 20 U.S.C. S1071 et seq.
(c) "Authority" means the Michigan higher
				  education assistance authority as created by Act No. 77 of the Public Acts of
				  1960, as amended, being S390.951 et seq. of the Michigan Compiled
				  Laws.
(d) "Claim" means the
				  requesting of insurance under the guarantee when the borrower defaults on a
				  loan in accordance with the conditions and requirements of the act and the
				  secretary specified in the provisions of 34 C.F.R. SS682.200, 682.402, and
				  682.411. These provisions are adopted by reference in
				  R 390.1491.
(e) "Cure requirements" means steps to be
				  followed to reinstate the guarantee in accordance with the conditions and
				  requirements of the act and the secretary that are set forth in 34 C.F.R.
				  S682.413 and adopted by reference in
				  R 390.1491, when those conditions
				  and requirements were not properly carried out in the initial administration of
				  the loan.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1402 - Definitions; D

Current through Vol. 24-12, July 15, 2024
Rule 2. As used in these rules:
(a) "Defaulted loans" means the failure of a
				  borrower to make an installment payment when due or to comply with other terms
				  of the note or other written agreement evidencing a loan in accordance with the
				  conditions and requirements of the act and the secretary specified in the
				  provisions of 34 C.F.R. SS682.200 and 682.412. These provisions are adopted by
				  reference in
				  R 390.1491.
(b) "Disbursement of a loan" means the
				  transfer by a lender of loan proceeds to a borrower. Disbursement shall be made
				  by a check which is payable to the borrower or to the borrower and the school
				  that requires endorsement or by electronic transfer to an account of the school
				  on behalf of a borrower where the account requires the written approval of the
				  borrower for the release of funds from the account.
(c) "Due diligence" means the secretary's
				  requirements, specified in the provisions of 34 C.F.R. SS682.206 to 682.208,
				  for a lender in making, disbursing, servicing, and collecting educational
				  loans. These provisions are adopted by reference in
				  R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1403 - Definitions; E

Current through Vol. 24-12, July 15, 2024
Rule 3. As used in these rules:
(a) "Educational loans" means loans to
				  student or parent borrowers as authorized by the act.
(b) "Executive director" means the executive
				  director of the Michigan higher education assistance authority.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1404 - Definitions; F, G

Current through Vol. 24-12, July 15, 2024
Rule 4. As used in these rules:
(a) "Federal interest benefits" means the
				  payment of interest by the secretary on behalf of an eligible borrower as
				  defined in the act.
(b)
				  "Forbearance" means reducing, extending, or delaying payments if scheduled
				  payments will place an undue burden on a borrower which, without relief, will
				  result in default.
(c) "Guarantee"
				  means to insure lenders against loss due to default by a borrower if the lender
				  meets the conditions and requirements of the act and the secretary specified in
				  the provisions of 34 C.F.R. SS682.205 to 682.213 and 682.411 to 682.414, in
				  administering the loan. These provisions are adopted by reference in
				  R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1405 - Definitions; L

Current through Vol. 24-12, July 15, 2024
Rule 5. As used in these rules:
(a) "Lender" means an eligible lender or
				  holder, as defined by the secretary in the provisions of 34 C.F.R. S682.200,
				  who has entered into a participation agreement with the authority. These
				  provisions are adopted by reference in
				  R 390.1491.
(b) "Limitation" means the continuation of an
				  institution's eligibility subject to compliance with special conditions
				  established by the provisions of
				  R 390.1481 to
				  R 390.1490.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1407 - Definitions; P to T

Current through Vol. 24-12, July 15, 2024
Rule 7. As used in these rules:
(a) "Participating school" means an eligible
				  institution which has executed an agreement with the secretary to participate
				  in the educational loan programs.
(b) "Promissory note" means the legal
				  document which is signed by a borrower agreeing to the terms and conditions of
				  the educational loan.
(c)
				  "Repayment period" means the period of the loan when a borrower is required to
				  make scheduled payments.
(d)
				  "Secretary" means the secretary of the United States department of education or
				  an official or employee of the education department to whom the secretary has
				  delegated authority.
(e)
				  "Suspension" means the removal of a school's or lender's eligibility for a
				  specified period of time or until the school or lender fulfills certain
				  requirements.
(f) "Termination"
				  means the removal of a school's or lender's eligibility for an indefinite
				  period of time or until reinstatement after termination occurs in accordance
				  with the provisions of
				  R 390.1490.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1411 - Lender or school discrimination based on race, color, creed, sex, national origin, or marital status prohibited

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1) The
				  educational loans are available to all eligible borrowers without regard to
				  race, color, creed, sex, national origin, or marital status.
(2) A participating school shall not
				  discriminate in the admission and treatment of students because of race, color,
				  creed, sex, national origin, or marital status.
(3) A lender shall not discriminate in making
				  an educational loan to an eligible borrower because of race, color, creed, sex,
				  national origin, or marital status.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1412 - Lenders, policies; loan practices

Current through Vol. 24-12, July 15, 2024
Rule 12.
(1) A
				  lender may determine its own lending policies, except as prescribed by these
				  rules, federal or state legislation, and regulations concerning state and
				  federal banking and credit practices.
(2) A lender shall comply with the
				  secretary's requirements, as set forth in the provisions of 34 C.F.R. SS682.205
				  to 682.208, in the making, disbursing, and servicing of a loan. These
				  provisions are adopted by reference in
				  R 390.1491.
(3) A lender shall comply with the
				  secretary's due diligence requirements, as specified in the provisions of 34
				  C.F.R. SS682.208 to 682.213 and 682.411, which are adopted by reference in
				  R 390.1491 in the collection of
				  loans and comply with both of the following provisions:
(a) A lender shall exercise reasonable care
				  and diligence in the collection of loans insured by the authority with regard
				  to borrowers. If the lender has obtained a cosigner, collection effort beyond
				  notifying the cosigner if the loan becomes delinquent is not mandatory. If the
				  loan is subsequently filed with the authority as a default, the cosigner shall
				  be notified and advised that collection shall be pursued by a state agency or
				  private agency.
(b) The due
				  diligence procedures and collection efforts shall be employed and documented by
				  the lender.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1413 - Records and reports of lenders

Current through Vol. 24-12, July 15, 2024
Rule 13.
(1) A
				  lender shall keep such records as may be necessary and as the authority and the
				  law and regulations may require and shall afford access to the records, at any
				  reasonable time, to the authority or the secretary, to assure accuracy and to
				  verify reports and records.
(2) A
				  lender shall maintain complete and accurate records of all educational loan
				  accounts reflecting each transaction, ready identification of each borrower's
				  account, and account status. The records shall contain full and proper
				  documentation to support claims for losses.
(3) A lender shall retain all records
				  pertaining to each applicant to whom an educational loan has been disbursed
				  until the secretary has no further need for such records, but for not less than
				  60 months after the date the loan is paid in full or has been defaulted and the
				  lender has been reimbursed by the authority. Records retained by the lender may
				  be stored on microform or in computer format. The holder of a promissory note,
				  however, shall retain the actual note until returned to the borrower upon
				  payment in full, after which the lender shall retain a copy of the note for not
				  less than 60 months.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1415 - Records of participating schools

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1) A
				  participating school shall keep necessary records as the authority or the
				  secretary require and afford access thereto at any reasonable time to the
				  authority, the secretary, or a representative of the authority or the secretary
				  to assure accuracy and to verify reports and records.
(2) With respect to each student who receives
				  the benefits of an educational loan, a participating school shall maintain
				  records for not less than 60 months after a student has terminated enrollment
				  regarding academic standing, periods of attendance, courses taken, and the
				  handling of loan funds.
(3) The
				  authority shall require each participating school to verify the enrollment
				  status of student borrowers and students for whom loans have been provided
				  through the parent loan program upon request.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1417 - Student transfers

Current through Vol. 24-12, July 15, 2024
Rule 17.
(1) When
				  a student transfers to another participating school, the original participating
				  school that certified the loan shall continue to have the loan recorded against
				  its total loans until repaid. The participating school to which the student
				  transfers shall furnish periodic reports to the authority concerning the
				  student's continuing loan eligibility.
(2) Where applicable, enrollment in an
				  ineligible school shall not be taken into consideration in the establishment of
				  a loan repayment due date. A due date shall be established based on the
				  student's last date of at least half-time attendance at an eligible
				  participating school.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1421 - Eligibility of applicants

Current through Vol. 24-12, July 15, 2024
Rule 21. To be eligible to receive an educational loan, an
					 applicant shall satisfy all requirements of the act, the authority, and the
					 secretary specified in the provisions of 34 C.F.R. SS682.200, 682.201, 682.300,
					 and 682.301. These provisions are adopted by reference in
					 R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1422 - Age of applicants

Current through Vol. 24-12, July 15, 2024
Rule 22. A person who otherwise qualifies for an
					 educational loan is not disqualified because the person is under age 18. A
					 person who is under age 18 is deemed to have full legal capacity to apply for,
					 receive, and repay a loan and has all the rights, powers, privileges, and
					 obligations of a person who is 18 years of age or older.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 1 - GENERAL PROVISIONS › Section R. 390.1429 - Cancellation of loans

Current through Vol. 24-12, July 15, 2024
Rule 29. The authority shall cancel a loan in full or in
					 part if disbursement does not occur prior to the ending date of the academic
					 period for which the loan was intended. A loan may be disbursed after the
					 academic period for which the loan was intended, if the borrower meets late
					 disbursement requirements as authorized by the authority.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1431 - Negotiations and execution of loans; cosigners

Current through Vol. 24-12, July 15, 2024
Rule 31. Negotiations and execution of educational loans
					 are limited to lenders and participating schools that deal with eligible
					 students or borrowers and the authority. The authority shall not require a
					 cosigner on the note. The lender may require a cosigner on the promissory
					 note.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1432 - Maximum rate of interest; permissible fees and charges

Current through Vol. 24-12, July 15, 2024
Rule 32.
(1) The
				  maximum rate of interest that may be charged on educational loans shall not be
				  more than 6% per annum with respect to loans made before August 3, 1968. The
				  interest rate for educational loans made August 3, 1968, and after shall comply
				  with the provisions of the act.
(2)
				  Interest is calculated from the date of disbursement of the funds by the lender
				  to the borrower. A student borrower shall not be required to pay interest to
				  the lender on any portion of the loan that the lender is concurrently receiving
				  federal interest benefit payments from the federal government.
(3) A lender may add accrued interest to the
				  unpaid principal balance, which is referred to as capitalization, under
				  conditions provided by the authority and the secretary in the provisions of 34
				  C.F.R. S682.202. These provisions are adopted by reference in
				  R 390.1491.
(4) A lender's method of computing interest
				  shall not result in an actual rate that is more than the allowable maximum rate
				  of interest.
(5) An insurance
				  premium payment may be charged by the authority to underwrite loans and to
				  cover costs incurred in the administration of the program. The insurance
				  premiums shall be collected by the lender from the borrower when the loan is
				  disbursed and shall be forwarded to the authority. The amount of the insurance
				  premiums set by the authority shall not exceed the maximum amount permitted by
				  the act. The insurance premium is refundable under conditions established by
				  the secretary as specified in the provisions of 34 C.F.R. SS682.202 and
				  682.401. These provisions are adopted by reference in
				  R 390.1491. A disbursed loan for
				  which the insurance premium has not been paid by the borrower or for which the
				  check written by the borrower is not honored by the financial institution upon
				  which the check was drawn is subject to cancellation of the guarantee
				  commitment.
(6) Each lender shall
				  charge the borrower, if applicable, an origination fee or other fees as
				  prescribed by the act.
(7) A
				  borrower may be charged for late payments. The amount of the charge shall not
				  be more than the maximum allowable amount as prescribed by the secretary in the
				  provisions of 34 C.F.R. S682.202. These provisions are adopted by reference in
				  R 390.1491.
(8) A borrower may be assessed collection
				  charges as defined by the secretary in the provisions of 34 C.F.R. S682.202.
				  These provisions are adopted by reference in
				  R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1433 - Loan amounts

Current through Vol. 24-12, July 15, 2024
Rule 33.
(1) The
				  annual loan limit, exclusive of interest, shall not be more than that set forth
				  in the act.
(2) The aggregate
				  insured unpaid principal of all loans shall not be more than the aggregate
				  limit as set forth in the act.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1436 - Disbursement of loan proceeds

Current through Vol. 24-12, July 15, 2024
Rule 36.
(1) The
				  disbursement of loan proceeds by a lender shall be in compliance with the due
				  diligence requirements for the disbursement of a loan set forth by
				  law.
(2) Loan proceeds shall be
				  disbursed in a manner permitted by law.
(3) Neither a lender nor a school may obtain
				  a borrower's authorization to endorse a disbursement check on behalf of a
				  borrower.
(4) The check, after
				  being presented for payment, shall be retained by the lender either in original
				  form or on microform for the period prescribed by the provisions of
				  R
				  390.1413.
(5) When a participating school receives loan
				  proceeds from a lender, the school shall process the proceeds based on
				  requirements established by the secretary in the provisions of 34 C.F.R.
				  S682.604. These provisions are adopted by reference in
				  R 390.1491.
(6) A school may only retain loan proceeds as
				  specified by the secretary in the provisions of 34 C.F.R. SS682.604 to 682.607.
				  These provisions are adopted by reference in
				  R 390.1491.
(7) With approval from the authority, a
				  lender may disburse an educational loan during the stated loan period, but
				  after a borrower has ceased to be enrolled on at least a half-time basis or
				  after the expiration of the loan period as indicated in the loan
				  application.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1437 - Use of loan proceeds

Current through Vol. 24-12, July 15, 2024
Rule 37. Loan funds shall be used to pay only those
					 obligations as specified by the secretary in the provisions of 34 C.F.R.
					 SS682.200 and 682.606. These provisions are adopted by reference in
					 R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 2 - LOAN PROVISIONS AND PROCEEDS › Section R. 390.1438 - Loan purchases

Current through Vol. 24-12, July 15, 2024
Rule 38. An educational loan may be purchased by another
					 lender and shall be reported on forms provided by the authority. Notice of a
					 merger of financial institutions on forms prescribed by the authority is
					 sufficient to enable the authority to make proper loan
					 changes.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 3 - INTEREST ON LOANS › Section R. 390.1441 - Eligibility for federal interest benefits

Current through Vol. 24-12, July 15, 2024
Rule 41.
(1) A
				  borrower who obtained a loan after November 7, 1965, may be eligible for
				  federal interest benefits if the borrower meets the eligibility requirements
				  set forth in the act.
(2) A student
				  loan disbursed before November 8, 1965, is not eligible for federal interest
				  benefits. Interest accruing on such a loan shall be deferred and made a part of
				  the principal when the repayment period begins.
(3) For a loan disbursed before November 8,
				  1965, a payment of 3% simple interest accrued on a loan before inception of the
				  repayment period shall be made by the authority if the borrower has graduated
				  or completed the originally intended course of study. The borrower shall pay
				  the entire 6% simple interest during the repayment period.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 3 - INTEREST ON LOANS › Section R. 390.1442 - Payment of federal interest benefits

Current through Vol. 24-12, July 15, 2024
Rule 42. Loans disbursed to students who are eligible for
					 federal payment of interest benefits shall have interest paid by the secretary
					 during the in-school period, grace period, and periods of authorized deferment
					 in the full amount as authorized for the date on which the loan was
					 disbursed.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 4 - PAYMENTS, EXTENSIONS, AND DEFERMENTS › Section R. 390.1451 - Repayment terms

Current through Vol. 24-12, July 15, 2024
Rule 51.
(1) Loan
				  repayment terms shall be established as required by the act and by the
				  secretary in the provisions of 34 C.F.R. SS682.209 to 682.211. These provisions
				  are adopted by reference in
				  R 390.1491.
(2) The loan may be paid in full or in part
				  at any time without penalty to the borrower.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 4 - PAYMENTS, EXTENSIONS, AND DEFERMENTS › Section R. 390.1455 - Deferment of payments; eligibility

Current through Vol. 24-12, July 15, 2024
Rule 55.
(1) To
				  qualify for deferment, a borrower shall meet the following deferment
				  conditions:
(a) For loans disbursed before
				  November 8, 1965, a borrower shall meet the deferment conditions established by
				  the authority.
(b) For loans
				  disbursed on November 8, 1965, and after, a borrower shall meet the deferment
				  conditions established by the act and by the secretary as set forth in the
				  provisions of 34 C.F.R. S682.210. These provisions are adopted by reference in
				  R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 4 - PAYMENTS, EXTENSIONS, AND DEFERMENTS › Section R. 390.1456 - Deferment of payments; periods

Current through Vol. 24-12, July 15, 2024
Rule 56.
(1) The
				  period of authorized deferment shall be in compliance with requirements
				  prescribed in the act or by the authority.
(2) Monthly payments shall resume after the
				  deferment condition has ended as specified in the act.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 4 - PAYMENTS, EXTENSIONS, AND DEFERMENTS › Section R. 390.1457 - Deferment of payments; effect

Current through Vol. 24-12, July 15, 2024
Rule 57.
(1) If a
				  borrower is eligible for federal interest benefits, periodic installments of
				  principal need not be paid and interest shall be paid by the federal
				  government.
(2) For loans granted
				  before November 8, 1965, interest shall continue to accrue and become part of
				  the principal when payments are to be resumed. Interest which accrues during an
				  authorized deferment on a loan granted on or after November 8, 1965, that is
				  not eligible for federal interest benefits shall be payable by the borrower in
				  a manner authorized by the secretary and agreed upon by the lender and
				  borrower.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 5 - DEFAULTED LOANS › Section R. 390.1461 - Death, disability, bankruptcy, and delinquency claims

Current through Vol. 24-12, July 15, 2024
Rule 61.
(1) The
				  lender shall file a claim to the authority with the documentation prescribed by
				  law.
(2) The authority, upon
				  verification that the secretary's requirements have been met, shall purchase
				  the borrower's note or notes. Failure to meet the secretary's requirements set
				  forth in the provisions of 34 C.F.R. S682.413 will result in withdrawal of the
				  guarantee. These provisions are adopted by reference in
				  R 390.1491.
(3) To allow reinstatement of the guarantee,
				  the lender shall meet the cure requirements as prescribed by the secretary in
				  the provisions of 34 C.F.R. S682.413. These provisions are adopted by reference
				  in
				  R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 5 - DEFAULTED LOANS › Section R. 390.1466 - Reimbursement of lender claim; assignment of notes

Current through Vol. 24-12, July 15, 2024
Rule 66.
(1) The
				  authority shall reimburse the lending institution at a level that is not less
				  than the authority's level of reimbursement by the secretary specified in the
				  provisions of 34 C.F.R. SS682.404 and 682.405. These provisions are adopted by
				  reference in
				  R 390.1491.
(2) A lender shall assign all of its rights
				  in the note to the authority before claim purchase.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 5 - DEFAULTED LOANS › Section R. 390.1467 - Guaranty reserve fund

Current through Vol. 24-12, July 15, 2024
Rule 67.
(1) The
				  authority shall hold moneys from all of the following to pay defaulted loans
				  and administrative expenses:
(a) Private
				  contributions.
(b) Deposits by
				  participating schools.
(c)
				  Appropriations from the state of Michigan.
(d) Reinsurance.
(e) Administrative cost allowance.
(f) Insurance premiums.
(g) Investment earnings.
(h) Advances from the federal
				  government.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 6 - FORBEARANCE › Section R. 390.1471 - Agreements and approval

Current through Vol. 24-12, July 15, 2024
Rule 71. A lender may enter into a forbearance agreement
					 with a borrower based on terms and conditions prescribed by the act and the
					 secretary as specified in the provisions of 34 C.F.R. S682.211. These
					 provisions are adopted by reference in
					 R 390.1491.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1481 - Participating school standard of care; effect of failure to properly administer programs; effect of conviction or guilty plea of school owner or chief executive officer for misuse of loan funds

Current through Vol. 24-12, July 15, 2024
Rule 81.
(1) A
				  participating school shall be subject to the highest standard of care and
				  diligence in administering the educational loan programs and in accounting to
				  the authority for the funds received under those programs.
(2) An institution's failure to properly
				  administer the educational loan programs or to account for the funds it
				  receives under those programs shall constitute grounds for the termination of
				  the eligibility of the school to participate in the programs.
(3) If the owner of a participating school or
				  the chief executive officer is convicted of, or pleads guilty to, a crime
				  involving the unlawful acquisition, use, or expenditure of loan funds provided
				  through the authority's educational loan programs, the authority shall consider
				  that conviction as a violation of the participating school's duty to administer
				  the loan programs with the highest standards of care and diligence and as an
				  automatic ground for terminating the school's eligibility to participate in the
				  authority's educational loan programs.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1482 - Emergency action to stop issuance of commitments

Current through Vol. 24-12, July 15, 2024
Rule 82.
(1) The
				  authority, through a designated official, may take emergency action to stop the
				  issuance of guaranty commitments to a lender or for a participating school for
				  any of the following reasons:
(a) The
				  authority receives information which gives reason to believe that a lender or
				  participating school is in violation of applicable laws, regulations,
				  agreements, or limitations.
(b) The
				  designated official determines that immediate action is necessary to prevent
				  the likelihood of substantial losses by the authority, the federal government,
				  students, or parents.
(c) The
				  designated official determines that the likelihood of loss outweighs the
				  importance of following the procedures for limitation, suspension, or
				  termination.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1483 - Lender limitation, suspension, or termination proceedings; effect

Current through Vol. 24-12, July 15, 2024
Rule 83.
(1)
				  Limitation, suspension, or termination proceedings shall not affect a lender's
				  responsibilities or rights to interest benefits, special allowance payments,
				  and claim payments that are based on the lender's prior participation in the
				  educational loan programs, except as provided in subrule (3) of this rule and
				  the provisions of
				  R 390.1488.
(2) A lender limitation may result in any of
				  the following:
(a) A limit on the number or
				  total amount of loans that a lender may make, purchase, or hold.
(b) A limit on the number or total amount of
				  loans that a lender may make to, or on behalf of, students at a particular
				  school.
(c) Conditions required
				  under the provisions of
				  R
				  390.1487, the act, the secretary, and the
				  authority.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1484 - Participating school limitation, suspension, or termination; effect

Current through Vol. 24-12, July 15, 2024
Rule 84.
(1)
				  Limitation, suspension, or termination proceedings shall not affect a
				  participating school's responsibilities or rights that are based on the
				  participating school's prior participation in the educational loan programs,
				  except as provided in subrule (4) of this rule and
				  R
				  390.1489.
(2) A participating school limitation may
				  result in any of the following:
(a) A limit
				  on the number or percentage of students enrolled in the participating school
				  who may receive educational loans.
(b) A limit, for a stated period of time, on
				  the percentage of a participating school's total receipts from tuition and fees
				  derived from the educational loan programs.
(c) A requirement that a participating school
				  obtain a bond, in a specified amount, to assure its ability to meet its
				  financial obligation to students who received educational loans.
(d) A hearing as required under the
				  provisions of
				  R
				  390.1487.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1485 - Notice of limitation, suspension, or termination proceeding

Current through Vol. 24-12, July 15, 2024
Rule 85.
(1) The
				  designated official shall begin a limitation, suspension, or termination
				  proceeding by sending a lender or participating school a notice.
(2) The notice shall include all of the
				  following:
(a) A statement of the designated
				  official's intent to suspend the lender's or the participating school's
				  eligibility for a period of not more than 60 days or limit or terminate the
				  lender's or participating school's eligibility.
(b) A description of the consequences of a
				  limitation, suspension, or termination.
(c) Identification of the alleged violations
				  on which the proposed limitation, suspension, or termination is
				  based.
(d) A statement of the
				  limits which may be imposed, in the case of a limitation proceeding.
(e) A statement of the proposed effective
				  date of the limitation, suspension, or termination, which shall not be less
				  than 20 days after the notice is mailed.
(f) Information to the lender or the
				  participating school that the limitation, suspension, or termination shall not
				  take effect on the proposed effective date if the designated official receives,
				  not less than 5 days before that date, a request for a hearing or written
				  material showing why the limitation, suspension, or termination should not take
				  effect.
(g) A request that the
				  lender or participating school correct any alleged violation
				  voluntarily.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1486 - Submission of written material by lender or school; action by designated official

Current through Vol. 24-12, July 15, 2024
Rule 86. If a lender or participating school does not
					 request a hearing but, submits written material pertaining to the limitation,
					 suspension, or termination, the designated official may consider the material
					 and shall take either of the following actions:
(a) Dismiss the proposed limitation,
				  suspension, or termination.
(b)
				  Notify the lender or participating school of the effective date of the
				  limitation, suspension, or termination.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1487 - Hearing

Current through Vol. 24-12, July 15, 2024
Rule 87.
(1) If a
				  lender or participating school requests a hearing within the required 5 days
				  before the proposed effective date of the limitation, suspension, or
				  termination, the designated official shall schedule a hearing.
(2) The hearing date shall not be less than
				  15 days after receipt of the request from the lender or the participating
				  school.
(3) A proposed limitation,
				  suspension, or termination shall not take effect until a hearing is
				  held.
(4) The hearing shall be
				  conducted and a decision rendered pursuant to the provisions of chapter 4 of
				  Act No. 306 of the Public Acts of 1969, as amended, being S24.271 et seq. of
				  the Michigan Compiled Laws.
(5) If
				  a termination action is brought against a lender or a participating school and
				  the hearing officer concludes that a limitation is more appropriate, the
				  hearing officer may issue a decision imposing 1 or more limitations on a lender
				  or a participating school rather than terminating the lender's or the
				  participating school's eligibility.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1488 - Participating school; corrective action

Current through Vol. 24-12, July 15, 2024
Rule 88.
(1) As
				  part of a limitation or termination proceeding, the designated official or the
				  executive director may require a participating school to take reasonable
				  corrective action to remedy a violation of applicable laws, regulations,
				  agreements, or limitations.
(2) The
				  corrective action may include payment of any funds to the authority, the
				  federal government, or recipients identified by the designated official.
				  Payment may include interest and special allowance that the lender or the
				  participating school improperly received, withheld, disbursed, or caused to be
				  disbursed.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1489 - Request for removal of limitation

Current through Vol. 24-12, July 15, 2024
Rule 89.
(1) A
				  lender or a participating school may request removal of a limitation imposed
				  under these rules not less than 12 months after the effective date of the
				  limitation.
(2) The request shall
				  be in writing and shall show that the lender or the participating school has
				  corrected any violations on which the limitation was based.
(3) Within 60 days after receiving the
				  request the executive director shall take 1 of the following actions:
(a) Grant the request.
(b) Deny the request.
(c) Grant the request subject to other
				  limitations.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1490 - Request for reinstatement of eligibility

Current through Vol. 24-12, July 15, 2024
Rule 90.
(1) A
				  lender or school whose eligibility has been terminated may request
				  reinstatement of its eligibility not less than 18 months after the effective
				  date of termination.
(2) A request
				  shall be in writing and shall demonstrate that both of the following provisions
				  have been complied with:
(a) The lender or
				  the school has corrected any violation on which the termination was
				  based.
(b) The school meets all
				  requirements for eligibility.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Guaranteed Loan Program › Part 7 - LIMITATION, SUSPENSION, OR TERMINATION OF SCHOOL PARTICIPATION › Section R. 390.1491 - Adoption of federal regulations by reference

Current through Vol. 24-12, July 15, 2024
Rule 91.
(1) The
				  following provisions of 34 C.F.R. S682 are adopted herein by reference:
Sections 682.200, 682.202, 682.205 to 682.213, 682.300,
					 682.301, 682.401, 682.402, 682.404, 682.405, 682.410, 682.414, and 682.604 to
					 682.607.
(2) A copy of
				  these provisions may be inspected at the Lansing office of the Michigan higher
				  education assistance authority of the department of education. A copy may be
				  obtained from the Department of Education, Higher Education Assistance
				  Authority, Michigan Guaranty Agency, P.O. Box 30047, Lansing, Michigan 48909,
				  at no cost. A copy may also be obtained from the United States Department of
				  Education, Guaranteed Student Loan Branch, 400 Maryland Avenue, S.W., Room
				  4310, ROB 3, Washington, DC 20202, at no cost.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1501 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Authority" means the Michigan higher
				education assistance authority.
(b)
				"Award" means a legislative merit award.
(c) "Postsecondary institution" means a
				postsecondary institution listed in the publication entitled "Basic Educational
				Opportunity Grant Directory of Eligible Postsecondary Institutions," or an
				institution otherwise approved by the state board of education.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1502 - Eligibility

Current through Vol. 24-12, July 15, 2024
Rule 2. A person shall be eligible for a scholarship award if
				  the person meets all of the qualifications stated in section 4 of Act No. 228
				  of the Public Acts of 1976, as amended, being S390.1304 of the Michigan
				  Compiled Laws.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1503 - Consideration of applicant for award

Current through Vol. 24-12, July 15, 2024
Rule 3. An applicant shall be considered for an award after
				  taking the scholarship examination designated by the authority, on a date
				  specified by the authority. After authorizing release of test scores to the
				  authority, an applicant shall be considered with all other award applicants who
				  graduate at the end of the applicant's senior academic year. Midyear awards
				  shall not be granted.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1504 - Effect of applicant's financial resources on eligibility for award

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1)
				Financial resources of an applicant, or of an applicant's family, shall not be
				used to determine award eligibility.
(2) Other financial aid awards received by an
				applicant shall not effect the applicant's eligibility for a legislative merit
				award.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1505 - Certification of postsecondary institution enrollment and recipient's intent

Current through Vol. 24-12, July 15, 2024
Rule 5. A recipient shall receive the award when
				  certification, in writing, is received by the authority that enrollment in a
				  named postsecondary institution has been accomplished, and that the recipient's
				  intent is to use the award exclusively for educational expenses at the
				  specified institution.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1506 - Payment of award

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) Award
				moneys shall be forwarded to the specified postsecondary institution by the
				authority for disbursement to the award recipient.
(2) Payment of an award shall be made, at the
				option of the recipient, in a single payment at the time of enrollment in a
				postsecondary institution or in prorated payments issued to the student or to
				the postsecondary institution for credit to the student's account during the
				student's course of study. A payment shall not be less than 25% of the total
				award granted the recipient and shall not exceed the educational cost for the
				recipient's enrollment period as determined by the authority.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1507 - Transfer to another postsecondary institution

Current through Vol. 24-12, July 15, 2024
Rule 7. An award recipient receiving award moneys in periodic
				  payments of not less than 25% of the total award may elect to transfer to
				  another postsecondary institution, and may use the unused portion of the award
				  at the second institution.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1508 - Refund of award moneys

Current through Vol. 24-12, July 15, 2024
Rule 8.
(1) An award
				recipient leaving a postsecondary institution prior to full utilization of an
				award shall waive any refund rights. Any unused award moneys, not to exceed
				payment for the enrollment period, shall be refunded by the institution to the
				authority. However, a recipient may opt to use any refunded award money during
				subsequent enrollment periods.
(2)
				An award recipient who enrolls in, but fails to attend, a postsecondary
				institution after funds are advanced, is legally bound by the acceptance
				contract to refund to the authority the full amount of the payment advanced for
				that enrollment period.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1509 - Renewal awards

Current through Vol. 24-12, July 15, 2024
Rule 9. An award recipient who fails to utilize a full award
				  during the first academic year of enrollment in a postsecondary institution
				  shall indicate intent to enroll the following year by making an award renewal
				  application to the authority. Any renewal award payment for subsequent academic
				  years shall be mailed by the authority to the eligible postsecondary
				  institution pursuant to the award recipient's request.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1510 - Acceptance contract between award recipient and authority

Current through Vol. 24-12, July 15, 2024
Rule 10. An acceptance contract shall be entered into by an
				  eligible award recipient and the authority prior to release of an award. The
				  contract shall specify conditions upon which the award is
				  granted.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1511 - Amount and number of awards

Current through Vol. 24-12, July 15, 2024
Rule 11. Awards of $1,000.00 shall be granted annually by the
				  authority according to the order of descending test scores of applicants. The
				  number of awards to be granted each year shall be determined by the amount of
				  moneys appropriated by the legislature for the program. If inclusion of the
				  lowest eligible score results in more awards than allowable for a particular
				  year, a drawing shall be utilized as a tiebreaker.
Michigan Administrative Code › Department - Treasury › Student Financial Services Bureau › Legislative Merit Award Program › Section R. 390.1512 - Furnishing roster of award recipients; certification of enrolled award recipients

Current through Vol. 24-12, July 15, 2024
Rule 12. The authority shall furnish a roster of eligible
				  award recipients, who have indicated intent to enroll, to each postsecondary
				  institution which has accepted award recipients for enrollment. The
				  postsecondary institutions shall certify to the authority, within 30 days, the
				  names of the eligible award recipients who have enrolled as
				  students.