Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164.518
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164.518(3) requires the
authority to promulgate administrative regulations for administration of the
Early Childhood Development Scholarship Program. This administrative regulation
establishes procedures for refund to the authority of monies paid under the
Early Childhood Development Scholarship Program.
Section 1. Failure to Enroll or Official
Withdrawal Before Classes Begin. If a scholarship recipient fails to enroll in
or officially withdraws from the scholarship program curriculum at a
participating educational institution prior to the first day of classes, the
scholarship award shall be deemed an overaward and a full refund of the monies
to the authority shall be required, notwithstanding a policy of the school to
the contrary.
Section 2. Withdrawal
After Classes Begin.
(1) If a scholarship
recipient officially withdraws or reduces his enrollment, and this occurs
before the participating institution applies the funds to the student's account
or disburses the funds to the student, the participating institution shall:
(a) Apply the funds to the student's account
for charges owed to the institution in accordance with the participating
institution's refund and repayment policy relative to financial aid funds;
and
(b) Return to the authority the
remaining funds.
(2) If
the participating institution applies the funds awarded to the student's
account or disburses the funds to the student, and the scholarship recipient
subsequently officially withdraws or reduces enrollment status, the student
shall not owe a repayment to the authority of award funds for that academic
term. If the participating institution owes a refund of institutional charges
in accordance with the participating institution's refund and repayment policy
relative to financial aid funds, the institution shall remit to the authority
that part of the refund attributable to the early childhood development
scholarship funds.
Section
3. Unofficial Withdrawal. If a scholarship recipient unofficially
withdraws from an eligible course after the beginning of classes, the authority
shall not seek from the participating institution a refund of the monies paid
under the scholarship.
Section 4.
(1) If the participating institution applies
to an ineligible student's account or disburses to an ineligible student
scholarship 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 scholarship funds applied to that student's account and
disbursed to that student.
(2) If
the participating institution applies to an eligible scholarship recipient's
account or disburses to an eligible scholarship recipient scholarship funds for
an academic term that exceed the amount awarded to the scholarship recipient,
the participating institution and the scholarship recipient shall be jointly
and severally liable to repay to the authority the excess amount of scholarship
funds applied to that scholarship recipient's account and disbursed to that
scholar-ship recipient.
Section
5.
(1) If a refund is due from
the participating institution or a repayment is due from a student who receives
an overpayment or was not eligible for a scholarship award, the participating
institution shall transmit to the authority the refund and shall report to the
authority:
(a) The student's name and Social
Security number;
(b) The reason for
the refund or repayment;
(c) Date
of enrollment status change;
(d)
The academic term and year; and
(e)
The calculation used for determining the refund or repayment.
(2) Refund of an amount due by the
participating institution shall be transmitted to the authority by electronic
funds transfer. Failure of the institution to make restitution when required
shall, without precluding other remedies, be deemed cause for limitation,
suspension or termination of the participation of the institution in accordance
with
11
KAR 4:020.
STATUTORY AUTHORITY:
KRS
164.518(3),
164.748(4)
