Alaska Administrative Code
Title 20 - Miscellaneous Boards and Commissions
Chapter 15 - Student Financial Aid
Article 11 - General Provisions
20 AAC 15.922 - Institutional eligibility to participate in Alaska education loan programs

(a) To participate in Alaska education loan programs, an institution must apply for and be granted approval under this section.

(b) To be eligible to participate in Alaska education loan programs, an institution must meet the requirements of AS 14.43 and this section and be

(c) An institution shall provide the commission with the documentation and information necessary to determine the institution's eligibility to participate in Alaska education loan programs. Commission staff may require the institution's administrative and financial aid representatives to attend training regarding Alaska education loan programs at the onset of participation and when a change occurs in the following:

(d) Before being approved by the commission to participate in Alaska education loan programs, an institution must enter into a program participation agreement that includes the subject of compliance with state statutes and regulations; change in ownership, name, address, location, program, or accreditation; managing education loan documents; default management; refunds to the commission; borrower information sharing; staff training; financial capability and reporting; administrative capability; standards for admission; performance reviews; minimum satisfactory progress requirements; career and completion information to consumers; program assessment; compliance review; and consequences of violating the agreement. However, unless the institution is on probation, or the commission staff finds evidence of any of the conditions listed in (g) of this section, the commission may waive the requirements of this subsection if the institution has a default rate of less than 10 percent, as calculated under 20 AAC 15.925.

(e) Before each loan disbursement, an institution shall verify the eligibility for each student who is currently enrolled.

(f) As the executive director considers necessary to ascertain compliance with the Alaska education loan programs' statutes and regulations and the institution's program participation agreement, an institution may be required to reapply biennially for approval for continuing participation in Alaska education loan programs, and the executive director may require an audit as described in 20 AAC 15.924. The executive director may require institutional representatives of the institution to complete program administration training as part of the institution's reapplication process.

(g) The commission may investigate, require an independent audit, or preclude an institution's participation in the Alaska education loan program, if probable cause exists based on evidence showing the institution's

(h) For the purpose of AS 14.43.120(b), "operating on a sound fiscal basis" means operating as an educational institution and enrolling and teaching students for at least two years on a sound fiscal basis as determined by the commission after review of an institution's audited financial statements and other documents pertinent to the institution's fiscal health as required by and submitted to the commission.

(i) Repealed 3/1/2002.

(j) An institution participating in a federal loan program under 20 U.S.C. 1001- 1155 (Higher Education Act of 1965) is exempt from the requirements of (d) and (h) of this section, if the institution maintains eligibility to participate in that program.

(k) Institutions participating in electronic funds transfer (EFT) programs must enter into an electronic funds transfer agreement with the commission, including mandatory participation in a method of electronic funds transfer approved by the commision.