Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
165A.450
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
165A.340(6) and
165A.400 authorize the Kentucky
Commission on Proprietary Education to promulgate administrative regulations to
administer the provisions of KRS Chapter 165A.
KRS
165A.450 requires the commission to
promulgate administrative regulations to ensure there is a renewable student
protection fund, impose fees when the balance of the fund drops below the
minimum, and establish other requirements related to the fund. This
administrative regulation establishes standards for distribution of the
funds.
Section 1. Definitions.
(1) "Commission" means the Kentucky
Commission on Proprietary Education.
(2) "Schools" means all schools, resident and
nonresident, licensed by the commission.
(3) "Sponsor" means the original source of
funds, whether student or entity, used to pay student charges for tuition,
books, and fees.
(4) "Student"
means a student currently enrolled and attending classes on a regular
basis.
Section 2.
Student Protection Fund Notice. Schools shall include on the student enrollment
agreement, in 14-point type font:
(1) A
statement notifying students of the existence of the student protection fund;
and
(2) The process for filing a
claim against the fund.
Section
3. Standards for Fund Distribution.
(1) The commission shall manage the student
protection fund ("the fund"). The fund shall be used in accordance with
KRS
165A.450.
(2) Each fund distribution for restitution
shall be made payable to the appropriate sponsor, as determined by the
commission and shall be made upon the presentation of a signed Form PE-38, Form
for Claims Against the Student Protection Fund, and supporting documentation,
verifying the student's enrollment and regular attendance at the time of the
school or program closure. The commission may require supporting documentation,
such as canceled checks, loan documents, or other documentation that supports
the student's entitlement to restitution.
(3) The amount to be refunded shall equal the
actual amount of loans and cash that have been applied to tuition, books, and
fees on behalf of the student's attendance at the school. If the claims
resulting from a school closing exceed the balance in the fund, the commission
shall provide for a pro rata distribution of the fund balance.
(4) If restitution is paid by the fund, the
fund shall be subrogated to the amount of the restitution.
(5) In order to be considered, a claim for
restitution from the student protection fund shall be made within one (1) year
of the date of the school or program closure.
(6) An applicant for payment from the student
protection fund who is dissatisfied with the decision of the commission may ask
for reconsideration of the commission's determination regarding eligibility for
restitution from the student protection fund.
(7) The request for reconsideration shall be
submitted by the applicant to the commission within thirty (30) calendar days
of the mailing date of the commission's decision.
(8) The request for reconsideration shall be
signed by the student and explain the reasons in support of a different
decision.
(9) Within forty-five
(45) days of receipt of the request for reconsideration, the commission shall
make a final determination and provide notice to the applicant.
(10) Each student eligible for reimbursement
shall receive funds from the surety bond or other collateral before filing a
claim against the Student Protection Fund.
Section 4. Incorporation by Reference.
(1) Form PE-38, "Form for Claims Against the
Student Protection Fund", May 2022, is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Commission on
Proprietary Education, 500 Mero Street, 4th Floor, Frankfort, Kentucky 40601,
Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on
the commission's Web site at
www.kcpe.ky.gov.
STATUTORY AUTHORITY:
KRS
165A.340(6),
165A.400,
165A.450
