(B) A scholarship or grant awarded by an
approved institution of higher education in this state funded, in whole or in
part, by state funds, including without limitation:
(i) Scholarships awarded on the basis of
entrance exam scores or high school academic achievement;
(ii) Tuition waivers based on age, military
service, occupation, or other factors;
(iii) Performance scholarships for band,
musical performing groups, arts, theater, forensics, and similar activities
that are not awarded on the basis of entrance exam scores or high school
academic achievement; and
(iv) Any
other publicly funded program under which students are not charged or are
reimbursed by the approved institution of higher education for tuition, fees,
books, or other costs of attendance.
Procedures
Eligibility Requirements.
(a) A student is eligible for an Arkansas
Future Grant if the student is an Arkansas resident who:
(1) Meets one (1) of the following
requirements:
(A) Has either:
(i) Graduated from an Arkansas:
(a) Public high school;
(b) Private high school; or
(c) Home school under §
6-15-501 et seq. ;
or
(ii) Received a high
school equivalency diploma approved by the Department of Career Education;
or
(B) Verifies that he
or she has resided in Arkansas for the three (3) years immediately preceding
application for the grant and has either:
(i)
Graduated from an out-of-state:
(a) Public
high school;
(b) Private high
school; or
(c) Home school
recognized by another state; or
(ii) Received a high school equivalency
diploma approved by another state;
(2) Is enrolled part-time or full-time at an
approved institution of higher education in a program of study that leads to an
associate degree or a certification in a:
(A)
Science, technology, engineering, or mathematics field, including computer
science; or
(B) Regional
high-demand field; and
(3) Has completed and submitted to the United
States Department of Education a Free Application for Federal Student Aid or a
subsequent application required by the United States Department of Education
for federal financial aid.
Continuing Eligibility Requirements.
(a) A student may continue to be eligible
until the student has:
(1) Received the grant
for five (5) academic semesters;
(2) Obtained an associate degree;
(3) Failed to maintain satisfactory academic
progress, as determined by the approved institution of higher education in
which the student is enrolled; or
(4) Failed to complete the mentoring or
community service requirements under the Grant Recipient Responsibilities
section of this rule.
Grant Award Amounts.
(a)
(1) An
Arkansas Future Grant shall be in an amount equal to the tuition, fees, and
other charges incurred by a student who meets the requirements under the
Eligibility Requirements and Continuing Eligibility Requirements sections of
this rule to attend an approved institution of higher education less the amount
the student receives in:
(A) State-supported
student financial assistance;
(B)
Federal student financial assistance; and
(C) Private scholarships.
(2) If the approved institution of
higher education in which the student is enrolled is a four-year institution of
higher education, the total amount of tuition, fees, and other charges under
subdivision (a)(1) of this section shall be calculated as the average cost of
tuition, fees, and other charges at approved institutions of higher education
that are two-year institutions of higher education.
(b) The Department of Higher Education shall
disburse the grant directly to the approved institution of higher education.
(c) The department shall award
grants under this rule in the order in which the department receives
applications from eligible students and based on availability of
funds.
Grant Hold.
(a)
(1) The
Department of Higher Education may approve a grant hold for a period of
twenty-four (24) months or less.
(2) The reasons for a grant hold may include
without limitation:
(A) A medical condition of
the student or a member of the student's immediate family that, on the basis of
a physician's good-faith judgment, necessitates the student or the student's
immediate family member to be hospitalized or receive outpatient or home-based
medical care or to recuperate until released by the attending
physician;
(B) A personal or family
emergency that requires the student to:
(i)
Attend the funeral of an immediate family member; or
(ii) Visit a relative of the student if the
relative has a medical condition in which death is possible or
imminent;
(C) Military
service under §
6-61-112;
or
(D)
(i) A commitment of twelve (12) to
twenty-four (24) months for service in a national or international humanitarian
project sponsored by a nonprofit corporation organized with a charitable or
educational purpose.
(ii) The
student's commitment shall be expressed in a written agreement with the
nonprofit organization including the terms of completion for the student's
service on the related project.
(iii) The department shall release a grant
hold if the department determines that the student did not complete the
commitment under the written agreement.
Grant Recipient Responsibilities.
(a) A student who receives an Arkansas Future
Grant shall enter into a written agreement with the Department of Higher
Education to:
(1)
(A) Receive monthly mentoring from a mentor
from an organization determined by the Department of Higher Education.
(B) A mentor under subdivision
(a)(1)(A) of this section shall:
(i) Receive
annual mentoring training:
(a) Developed by
the Department of Higher Education; and
(b) Provided by a local volunteer group
approved by the Department of Higher Education; and
(ii) Certify to the Department of Higher
Education that at least one (1) time each calendar month the mentor has
provided mentoring services by telephone, email, or in person to each student
he or she is mentoring;
(2)
(A)
Complete at least fifteen (15) hours of community service each semester the
student receives a grant.
(B)
(i) A student may select a community service
project that meets requirements developed by the Department of Higher
Education.
(ii) An approved
institution of higher education may provide community services opportunities
designed to benefit the approved institution of higher education community or
the broader local community.
(C) A student shall certify his or her
community service to the approved institution of higher education by the last
regular day of the semester the student received the grant; and
(3)
(A) Reside in this state for three
consecutive (3) years and be employed beginning within six (6) months after
receiving an associate degree or a certification.
(B) The Department of Higher Education may
defer the requirement under subdivision (a)(3)(A) of this section if:
(i) The Department of Higher Education, in
consultation with the Department of Workforce Services, determines that there
was no employment position available that would reasonably enable the student
to meet this requirement; or
(ii)
Special circumstances as determined by the Department of Higher Education
exist.
(C) After the
period of deferral, the student shall begin or resume working in this state or
become subject to repayment under subsection (b) of this section.
(b) The written
agreement under subsection (a) of this section shall provide that the grant
converts into a loan and the student shall repay the grant amount:
(1) On a pro rata basis at an interest rate
and on a schedule as determined by the Department of Higher Education for each
year the student does not reside in this state for three (3) consecutive years
and become employed beginning within six (6) months after receiving an
associate degree or a certification; or
(2) In its entirety at an interest rate and
on a schedule as determined by the Department of Higher Education if the
recipient does not comply with the written agreement under subsection (a) of
this section.
(c) It is
the recipient's responsibility to notify the Arkansas Department of Higher
Education of any change in status within 21 days. Failure to notify the
Arkansas
Department of Higher Education of a change of status may affect
future eligibility. Change of status will include:
(1) Change in name
(2) Change in address
(3) Change in institution
Collection of Loan.
(a) Accounts will be retained by the
Department of Higher Education in the Financial Aid Division until the
individual is no longer eligible for deferment. The account will be turned over
to a vendor for repayment. The student will be notified by mail that their
account is being placed with a vendor for collections and they will be sent a
loan amortization schedule along with the letter. The account will remain with
the vendor until repaid or 120 days past due. Loan recipients who are
determined by the Department of Higher Education to be 120 days delinquent will
be mailed their first letter of notification ten (10) days after the
installment payment is due. If payment is not forthcoming within 60 days from
the original payment due date, a second letter of notification will be sent to
the loan recipient declaring their account is delinquent and requesting that
the account be immediately brought up to date. If the loan recipient has not
responded within 90 days from the original payment due date, the third and
final letter of notification will be sent to the recipient informing them that
the account will officially be in default if outstanding payments are not made
within 30 days.
(b) Skip Tracing
Mechanisms
(1) ADHE will use these steps to
locate recipients if communications are returned as undelivered:
(A) Contact the Motor Vehicle Division of the
Arkansas Department of Finance and Administration;
(B) Contact references listed on the
recipient's application;
(C)
Utilize telephone directory or check with directory assistance in the area of
the recipient's last known address;
(D) Contact institutional offices (alumni
office, admissions office, registrar's office, fraternity or sorority, and the
department that the recipient majored in) at the campus where the recipient
last attended;
(E) Contact
creditors, such as credit card companies, credit bureaus, or GSL
lender;
(F) Contact recipient's
field of study--professional organization, union, or licensing board;
(G) Contact post office;
(H) Contact utility companies; and, (I)
Contact Chamber of Commerce.
(c) Credit Reporting Agencies
(1) Defaulted recipients will be reported to
the following Credit Reporting Agencies:
(A)
CSC Credit Reporting Services, Inc.
(B) T R W Credit Data
(C) Trans Union Credit Reporting
(2) Forms for reporting defaulted
loan recipients are located in the collections file. The Department of Higher
Education will also respond promptly to any inquiries it receives from credit
reporting agencies concerning delinquent or defaulted loan recipients.
(d) State Income Tax
Set Off
(1) By the authority of Act 345 of
1993, the Department of Higher Education has been included as a claimant agency
for the setoff of debts against state tax refunds.
(e) Litigation
(1) No sooner than 30 days after sending the
third letter of notification, the Department of Higher Education shall
institute a civil suit against the recipient for repayment of the loan. Small
Claims Courts will be used to satisfy debts of accounts up to $3,000.00. If
over $3,000. 01, the Department of Higher Education must use Circuit Court. If
the account is $3,000. 01 or above, the Department of Higher Education may
choose to use Small Claims Courts and waive the difference because of the
expense involved in going to Circuit Court. If the Department of Higher
Education chooses to waive the difference, it cannot later try to collect the
difference. Forms to take the recipient to Small Claims Courts are requested
from the recipient's county of residence.
(f) Write-Offs
(1) Arkansas Future Grants that convert to
loans may be written off as uncollectible if the Department of Higher Education
shows due diligence to satisfy the collection of the debt, and documents in the
recipient's file that:
(A) The cost of
litigation would exceed the likely recovery if litigation were commenced;
or
(B) The recipient does not have
the means to satisfy a judgment on the debt, or a substantial portion thereof.
(2) Proof of due
diligence collection activities must be submitted to the Administrator of the
Department of Finance and Administration and approval from the Administrator
must be received before Arkansas Future Grant loan accounts may be written off.
(g) Nonpayment
Penalties
(A) Loan recipients who fail to meet
their repayment obligations may have added to their total obligation any costs
for collection of the debt.
Institutional Responsibilities.
(a) College/University Responsibilities
(1) Administrative Agreement
The chief executive officer of the eligible institution is
responsible for appointing one representative from the financial aid office to
act as administrator of the Arkansas Future Grant Program and to receive all
communications, forms, etc. This representative is responsible for
verification, data and compliance with all program rules and regulations. The
institution must comply with all rules and regulations in order to maintain
continued eligibility status.
(2) Disbursement Records
The institution shall maintain information on the student
indicating disbursement of scholarship funds.
(3) Institutional Verification
The institution shall provide certification of enrollment in
eligible program of study and enrollment in courses that will meet satisfactory
academic progress standards, as of the eleventh day of classes, by completing a
Verification Roster each semester after registration. The Verification Roster
is an alphabetical listing by institution of all persons receiving the award
for a given academic term. The certifying official is responsible for
completing the verification rosters each semester or trimester. The Arkansas
Department of Higher Education shall provide electronic Verification Rosters to
the Financial Aid Administrator for each semester or trimester as needed. The
electronic Verification Rosters shall be returned to the Arkansas Department of
Higher Education by November 1 for the fall term and by March 15 for the spring
term. The Arkansas Department of Higher Education shall also provide electronic
continuing eligibility rosters to the Financial Aid Administrator before the
end of the fall and spring term. The continuing eligibility rosters shall be
returned to the Arkansas Department of Higher Education no later than January
15 based on the Fall semester and June 1 based on the Spring semester to ensure
that adequate time is provided to notify students of their status in the
program.
(4) Deadlines for
Disbursement of Funds
The deadline for disbursement of funds is no later than 10 days
after receipt of funds. Any outstanding funds not disbursed by these dates must
be returned to the Arkansas Department of Higher Education. For those students
whose applications are received by ADHE too late to allow disbursement by these
dates, disbursement will be made within 10 working days of receipt of the
verification roster and electronic transfer of funds.
(5) Due Diligence
The institution will exercise due diligence in providing
complete, accurate, and timely information as requested by the Arkansas
Department of Higher Education on any Arkansas Future Grant recipient or former
recipient. In addition, the institution will exercise due diligence in
complying with all the rules and regulations of the Arkansas Future Grant
Program. The Arkansas Department of Higher Education shall periodically review
the institution's records concerning this program in an effort to exercise its
due diligence requirements as a steward of state funds.
