Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 164.7871-164.7885
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164.748(4) requires the
authority to promulgate administrative regulations pertaining to the awarding
of grants, scholarships, and honorary scholarships as provided in
KRS
164.740 to
164.7891.
KRS
164.7885(7) authorizes the
authority to promulgate administrative regulations for the administration of
the Kentucky Educational Excellence Scholarship Program. This administrative
regulation establishes the conditions and procedures for refund or repayment of
Kentucky Educational Excellence Scholarship funds.
Section 1.
(1) If a student who earned a Kentucky
Educational Excellence Scholarship (KEES) or supplemental award, fails to
enroll, withdraws, is expelled from the institution, or otherwise fails to
complete the program on or after his first day of class of the period of
enrollment or changes enrollment status, the student may be due a refund of
monies paid to the institution on behalf of that student or may owe a repayment
of cash disbursements made to the student for educational expenses.
(2) If the student received a Kentucky
Educational Excellence Scholarship or supplemental award, all or a portion of
the refund and repayment shall be due to the authority for its financial
assistance programs in accordance with Sections 2 and 3 of this administrative
regulation.
Section 2.
(1) The institution shall adopt and implement
a fair and equitable refund and repayment policy for financial assistance
administered by the authority which shall be:
(a) A clear and conspicuous written
statement;
(b) Made available to a
prospective student, prior to the earlier of the student's enrollment or the
execution of the student's enrollment agreement, and to currently-enrolled
students;
(c) Consistently
administered by the institution; and
(d) Made available to the authority upon
request.
(2) The
institution's refund and repayment policy for financial assistance administered
by the authority may use the same methods and formulas for determining the
amount of a refund or repayment as the institution uses for determining the
return of federal financial assistance funds or the institution may adopt a
separate and distinct policy that is based upon:
(a) The requirements of applicable state law;
or
(b) The specific refund
standards established by the institution's nationally-recognized accrediting
agency.
(3) The amount of
the refund and repayment shall be determined in accordance with the educational
institution's refund and repayment policy relative to financial assistance
funds, except as provided in Section 3 of this administrative
regulation.
(4) When the
institution determines that a refund or repayment of financial assistance is
due in accordance with its policy, the institution shall allocate to the
financial assistance programs administered by the authority the refund and
repayment in the following descending order of priority prior to allocating the
refund to institutional or private sources of financial assistance:
(a) CAP grant;
(b) KTG;
(c) Go Higher Grant;
(d) Teacher Scholarship;
(e) Kentucky Educational Excellence
Scholarship;
(f) Kentucky Coal
County College Completion Scholarship;
(g) National Guard tuition assistance;
and
(h) Early Childhood Development
Scholarship;
Section
3.
(1) If a KEES recipient
officially or unofficially withdraws from or is expelled by an institution
before the first day of classes of the award period, the award shall be deemed
an overaward and a full refund or repayment of the KEES award shall be
required, notwithstanding any institutional policy to the contrary.
(2) If the institution is unable to document
the student's last date of attendance, any KEES disbursement for that award
period shall be subject to full refund and repayment.
(3) If, at any time, a KEES recipient's
enrollment is terminated with no assessment of tuition and fees by the
institution, then the full KEES award shall be subject to cancellation, if not
yet disbursed, or refund and repayment if the grant has already been disbursed.
Section 4.
(1) If a student earned a Kentucky
Educational Excellence Scholarship or supplemental award but did not earn the
entire amount of award funds the participating institution applies to the
student's account or disburses to the student for an academic term, the
participating institution and the student shall be jointly and severally liable
to repay to the authority the amount of the overpayment.
(2) If a student did not earn a Kentucky
Educational Excellence Scholarship or supplemental award and the participating
institution applies to that student's account or disburses to that student
Kentucky Educational Excellence Scholarship or supplemental award funds for an
academic term, the participating institution and the student shall be jointly
and severally liable to repay to the authority the entire amount of Kentucky
Educational Excellence Scholarship and supplemental award funds applied to that
student's account and disbursed to that student.
Section 5. The institution shall remit to the
authority the amount of funds allocated from the refund amount to the financial
assistance programs administered by the authority as soon as possible but no
later than thirty (30) days after the end of the term in which the student
ceased to be enrolled.
Section 6.
(1) If a refund is due from the participating
institution or a repayment is due from a student, the participating institution
shall transmit to the authority the refund and shall report:
(a) The student's name and Social Security
number;
(b) The reason for the
refund or repayment;
(c) The date
of enrollment status change;
(d)
The academic term and award period; and
(e) The calculation used for determining the
refund or repayment.
(2)
Failure of the institution to make restitution when required shall, without
precluding other remedies, be cause for limitation, suspension, or termination
of the participation of the institution in accordance with
11
KAR 4:020.
STATUTORY AUTHORITY:
KRS
164.748(4),
164.7885(7)