Current through all regulations passed and filed through September 16, 2024
The treasurer of state herein
establishes a rule to promote and encourage Ohio's workforce development and
job growth through educational training and retraining in programs related to
employment opportunities in areas that are in demand. This rule is established
by authority conferred upon the treasurer of state by section
111.15 of the Revised Code and
section 2 of Amended Substitute Senate Bill 1 of the 130th General Assembly, as
amended by section 610.22 of Amended Substitute House Bill 64 of the 131st
General Assembly.
(A)
Definitions
(1)"EFT" means electronic funds
transfer.
(2)
"Institution" means any of the following:
(a)
A state
institution of higher education, as defined in section
3345.011 of the Revised
Code;
(b)
A private career school, as defined in section
3332.01 of the Revised
Code;
(c)
A private, nonprofit institution in this state holding
a certificate of authorization pursuant to Chapter 1713. of the Revised
Code;
(d)
A private institution exempt from regulation under
Chapter 3332. of the Revised Code as prescribed in section
3333.046 of the Revised Code, if
the program has a certificate of authorization pursuant to Chapter 1713. of the
Revised Code;
(e)
A career-technical center, joint vocational school
district, comprehensive career-technical center, or compact career-technical
center offering adult training.
(3)
"Loan Program"
means the OhioMeansJobs workforce development revolving loan
program.
(4)
"OAKS" means Ohio administrative knowledge
system.
(5)
"Workforce Training Program" includes any of the
following:
(a)
Courses, programs, or a degree from an
institution;
(b)
Vocational education classes offered to adult
learners;
(c)
Any other training program designed to meet the special
requirements of a particular employer.
(B)
Loan servicing
fees
The treasurer of state established a
fee to be charged to loan recipients to offset the cost of servicing the loans,
as described in the promissory note, located at: www.tos.ohio.gov.
In establishing the fee, the treasurer of state considered the costs associated
with originating the loan as well as the costs associated with the ongoing
servicing of the loan. The fee charged to a loan recipient to offset the cost
of servicing a loan does not exceed the actual cost of servicing that
loan.
(C)
Loan repayment terms
(1)The treasurer of state established the
terms under which loans made through the loan program are repaid as described
in the promissory note, located at:
www.tos.ohio.gov.
The terms of repayment are set forth in the promissory note that prospective
loan recipients must execute as a prerequisite to receiving a loan, and the
treasurer of state may, in its discretion, modify the terms of repayment
through revisions to the form of promissory note. The payment schedule will not
exceed seven years from the date a participant successfully completes a
"Workforce Training Program."
(2)
Students are
required to make payments during the repayment period, as that term is defined
in the form of promissory note, in consecutive, monthly installments until they
have paid the principal, interest, fees, and all other charges owed under the
promissory note. Payments will be applied first to fees, then to accrued
interest, and then to principal.
(D)
Interest rate on
loans
(1) The
treasurer of state will assess a rate of interest of not more than four per
cent per annum on any outstanding principal balance of a loan beginning on the
earlier of the following:
(a)
The date on which the participant withdrawals from or
ceases to participate in a "Workforce Training Program";
(b)
The last day of
the sixth calendar month following a participant's completion of a "Workforce
Training Program"; or
(c)
The date the participant ceases to reside in
Ohio.
(2)
The treasurer of state may change the rate of interest
assessed on outstanding principal balances of new loans by modifying the form
of promissory note; however, the treasurer of state will not assess a zero
percent interest rate, nor will the treasurer of state assess an interest rate
in excess of four per cent per annum.
(E)
Loan
disbursement
(1)The treasurer of state will, on an individual loan basis,
via OAKS, disburse the funds representing an approved loan from the loan
program to the appropriate institution using the following procedures:
(a)
Institutions
register as a vendor in OAKS with the ability to receive funds via
EFT;
(b)
Upon receiving confirmation from the loan servicer that
it is in possession of a promissory note and self-certification form for an
approved student, the treasurer of state will create and approve an OAKS
voucher payable via EFT to the institution at which the applicable student is
enrolled for the amount of the loan;
(c)
The treasurer of
state will notify the institution and the loan servicer of the
disbursement;
(d)
The receiving institution will credit the student's
account within five business days of receipt of loan program
funds;
(e)
The institution will confirm that the student's account
has been credited by sending electronic mail confirmation to the treasurer of
state within seven business days of receipt of loan program funds.
(2)
The treasurer of state will disburse the funds
representing approved loans to Institutions on an individual loan basis;
however, if multiple loans are approved in a similar time frame, or for the
same "Workforce Training Program," disbursements to institutions may be sent in
batch form, in amounts not to exceed the sum of the approved loans. The
treasurer of state will not disburse funds based on the loan award
amount.
Effective: 1/12/2018
Five Year Review
(FYR) Dates: 01/02/2023
Promulgated Under: 111.15
Statutory Authority: 6301.14;
Section 610.22 of Am. Sub. H.B. 64 of the 131st GA
Rule Amplifies:
6301.14; Section 610.22 of Am. Sub. H.B. 64 of the 131st
GA
