Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164.740,
164.748(6),
(13),
20 U.S.C.
1078,
1078-8,
1085,
34 C.F.R. Part 668 subparts A, B, D, E, F
NECESSITY, FUNCTION, AND CONFORMITY: The Kentucky Higher
Education Assistance Authority administers programs of student financial
assistance.
KRS 164.748(6) and
(13) requires the authority to enter into
contracts with eligible educational institutions to provide for the
administration of student financial assistance programs, and approve,
disapprove, limit, suspend, or terminate the participation of the institutions.
This administrative regulation establishes the conditions under which the
authority shall execute a contract with an institution for participation in the
authority's programs.
Section 1.
Definitions.
(1) "Applicable federal loans"
means loans that:
(a) Are either:
1. Federal Stafford loans or federal SLS
loans, which are loans reinsured by the secretary pursuant to
20 U.S.C.
1078 or
1078-8;
or
2. The portion of a loan made
under the Federal Consolidation Loan Program that is used to repay a federal
Stafford loan or federal SLS loan; and
(b) Are received for attendance at an
institution.
(2)
"Authority" is defined by
KRS
164.740(1).
(3) "Eligible institution" is defined in
KRS
164.740(4).
(4) "Eligible program of study" is defined
by:
(a)
KRS
164.769(2)(b) for purposes
of Section 8 of this administrative regulation; and
(b)
11
KAR 5:001, Section 1 (10), for purposes of Sections 6
and 9 of this administrative regulation.
(5) "Federal act" is defined by
KRS
164.740(8).
(6) "Fiscal year" means the period from and
including October 1 of the calendar year through and including September 30 of
the following calendar year.
(7)
"Fiscal year default rate" means:
(a) For a
fiscal year in which thirty (30) or more current and former students at the
institution enter repayment on applicable federal loans, the percentage of
those current and former students who enter repayment on the loans received for
attendance at that institution in that fiscal year who default before the end
of the following fiscal year as determined by the secretary pursuant to
20 U.S.C.
1085; or
(b) For a fiscal year in which less than
thirty (30) of the institution's current and former students enter repayment on
applicable federal loans, the percentage of those current and former students
who entered repayment on applicable federal loans in any of the three (3) most
recent fiscal years, who default before the end of the fiscal year immediately
following the year in which they entered repayment.
(8) "Insured student loan" is defined by
KRS
164.740(11).
(9) "Secretary" is defined by
KRS
164.740(20).
Section 2. General Rule.
(1) The authority shall execute an
administrative agreement with any educational institution which:
(a) Meets the applicable eligibility criteria
established by
KRS
164.740 through
164.7891
and the federal act, if applicable; and
(b) is approved for participation by the
authority and, if applicable, the secretary.
(2) The authority shall approve for
participation in any authority program an eligible institution which:
(a) Is certified by the secretary to
participate in programs of student financial assistance authorized by the
federal act, and has in force, if required by the secretary, a participation
agreement with the secretary to participate in any of those programs;
(b) Is not presently suspended or terminated
from participation in student financial assistance programs by either the
authority, an organization authorized to insure loans under the federal act, or
the secretary;
(c) Meets the
criteria set forth in Sections 4 through 10 of this administrative regulation,
as applicable to the particular authority program in which the educational
institution seeks participation; and
(d) Has been in continuous operation for at
least two (2) years, unless otherwise required by the federal
act.
Section 3.
Maintenance of Participation.
(1) Except as
provided in
11
KAR 4:020, an administrative agreement shall remain in
effect:
(a) In accordance with subsection (2)
of this section and the terms of the agreement; and
(b) As long as the educational institution
conforms to the criteria established in Section 2 of this administrative
regulation.
(2) If
participation by an institution is suspended or terminated from student
financial assistance programs pursuant to
11
KAR 4:020, the authority may determine that the
administrative agreement shall remain in force for one (1) or more specified
programs if the authority determines there is good cause for the
exception.
(3) The authority may
periodically reevaluate the status of the institution with respect to the
criteria established in this administrative regulation.
Section 4. Documentation of Federal
Eligibility.
(1) The institution shall
demonstrate to the authority that it is approved by the secretary to
participate, and holds all necessary licenses to offer academic programs by
submitting to the authority a true and complete copy of the most recent federal
application for institutional eligibility, eligibility letter, and program
participation agreement executed by the secretary.
(2) The authority may disapprove, limit,
suspend, or terminate the participation of an institution upon failure to
submit the required documentation within forty-five (45) days following request
by the authority.
Section
5. Insured Student Loan Program Participation. In order to
participate in the authority's insured student loan program, the educational
institution shall:
(1) Be certified by the
secretary to participate and have in force, if required by the secretary, a
participation agreement with the secretary; and
(2) Execute an administrative agreement with
the authority. The authority may permit an educational institution, otherwise
approved, to participate without an agreement if:
(a) The institution's fiscal year default
rate is twenty (20) percent or less; or
(b) The volume of loans insured by the
authority for students attending that institution in any fiscal year does not
exceed $50,000.
Section
6. Kentucky Tuition Grant Program Participation. In order to
participate in the authority's KTG program, an educational institution shall:
(1) Qualify as a private, independent college
or university, which is accredited by a regional accrediting association
recognized by the U.S. Department of Education;
(2) Be located within the Commonwealth of
Kentucky;
(3) Offer an eligible
program of study, which is not comprised solely of sectarian instruction;
and
(4) Execute an administrative
agreement with the authority.
Section
7. KHEAA Work Study Program Participation. In order to participate
in the authority's KHEAA work study program, an educational institution shall:
(1) Qualify as an eligible
institution;
(2) Be located within
the Commonwealth of Kentucky;
(3)
Offer a program of study not comprised solely of sectarian instruction;
and
(4) Execute an administrative
agreement with the authority.
Section
8. Teacher Scholarship Participation. In order to participate in
the authority's teacher scholarship program, an educational institution shall:
(1) Qualify as a an eligible
institution;
(2) Be located within
the Commonwealth of Kentucky;
(3)
Offer an eligible program of study; and
(4) Execute an administrative agreement with
the authority.
Section 9.
College Access Program Participation. In order to participate in the
authority's college access program, an educational institution shall:
(1) Qualify as a an eligible
institution;
(2) Be located within
the Commonwealth of Kentucky;
(3)
Offer an eligible program of study; and
(4) Execute an administrative agreement with
the authority.
Section
10. The authority may execute an administrative agreement with an
educational institution which may include nonmain campuses of the institution
that are not separately incorporated.
STATUTORY AUTHORITY:
KRS
164.748(4)
