Cal. Code Regs. tit. 5 § 76210

Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 76210 - Claims Amount, Payment and Denial
(a) A student seeking reimbursement under the Fund that includes student loans as part of the claim shall make reasonable attempts to obtain a loan discharge directly from the loan holder before the Bureau will complete the processing of the student's application for payment under section 76200.
(b) The Bureau may negotiate with a lender, holder, guarantee agency, or the U.S. Department of Education for the full compromise or write-off of student loan obligations to relieve students of economic loss and, if possible, to reduce the liability of the Fund for the payment of claims.
(c) The Bureau may pay a student's claim directly to the lender, holder, guarantee agency, or U.S. Department of Education as permitted by law.
(d) If the Bureau grants the claim, the amount of the payment is measured by the total amount of the student's economic loss, as defined in Section 76000, less the amount of any refund, reimbursement, indemnification, restitution, compensatory damages, settlement, debt forgiveness, discharge, cancellation, compromise or any other benefit received by, or on behalf of, the student that is related to the economic loss. The amount of the payment is not dependent on, or necessarily limited to, the amount of refund the student would have received from the institution if the student had voluntarily withdrawn. The Bureau cannot pay any claim to or for a student without a social security number or a taxpayer identification number.
(e) In addition to the reductions in (d) above, the Bureau may reduce the amount of the payment by the value of the benefit, if any, of the education obtained by the student before the closure of the institution.
(f) For a student who suffers educational opportunity loss whose charges were paid by a third-party payer, the Bureau will pay the student's charges at a subsequent institution up to the original third-party payer benefit once the student has exhausted his or her eligibility with the original third party-payer benefit. The subsequent institution must be eligible to receive the same third-party payer benefit as the original institution or program, and the Bureau must have evidence of the student's enrollment at the subsequent institution.
(g) If a student participated in a teach-out, the following conditions also apply:
(1) If the student withdraws from the teach-out institution within the first two weeks of enrollment, the student's economic loss is calculated as though the student never received the teach-out.
(2) If the student withdraws from the teach-out institution after the first two weeks of enrollment, the student's economic loss includes only a pro rata portion of charges for the hours of the education service paid for, but not received from, either institution.
(3) If the teach-out institution provides all of the remaining instruction that the closed institution had represented it would provide, the student's economic loss shall not include any amount the student paid to the closed institution specifically for instruction.
(4) Regardless of participation in a teach-out, a student may recover economic losses other than those specifically related to the instruction.
(h) Upon payment of the claim, all of the student's rights against the institution for that amount of payment shall be deemed assigned to the Bureau.
(i) If the Bureau denies the claim, or reduces the amount of the claim, the Bureau may informally consider a written appeal and modify its decision.
(j) If a written appeal is not received by the Bureau within 60 calendar days from the date of the decision, the Bureau's decision shall be final.

Cal. Code Regs. Tit. 5, § 76210

1. New section filed 3-12-92 as an emergency; operative 3-12-92 (Register 92, No. 13). A Certificate of Compliance must be transmitted to OAL 7-10-92 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 3-12-92 order transmitted to OAL 9-1-92 and filed 10-14-92 (Register 92, No. 42).
3. Editorial correction of HISTORY 1 (Register 95, No. 47).
4. Amendment of section and NOTE filed 9-11-2003; operative 9-11-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 37).
5. Amendment of section heading, section and NOTE filed 2-1-2010 as an emergency; operative 2-1-2010 (Register 2010, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-2-2010 or emergency language will be repealed by operation of law on the following day.
6. Amendment of section heading, section and NOTE refiled 7-30-2010 as an emergency; operative 7-30-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-28-2010 or emergency language will be repealed by operation of law on the following day.
7. Reinstatement of section as it existed prior to 2-1-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 47).
8. Amendment of section heading, section and NOTE refiled with additional amendments 12-1-2010 as an emergency; operative 12-1-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-1-2011 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 12-1-2010 order, including editorial correction redesignating subsection (i) as new subsection (g), transmitted to OAL 3-1-2011 and filed 4-12-2011 (Register 2011, No. 15).
9. Amendment filed 8-10-2017; operative 8-10-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 32).

Note: Authority cited: Sections 94803, 94877 and 94923, Education Code. Reference: Sections 94923, 92924 and 94925, Education Code.

1. New section filed 3-12-92 as an emergency; operative 3-12-92 (Register 92, No. 13). A Certificate of Compliance must be transmitted to OAL 7-10-92 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 3-12-92 order transmitted to OAL 9-1-92 and filed 10-14-92 (Register 92, No. 42).
3. Editorial correction of History1 (Register 95, No. 47).
4. Amendment of section and Note filed 9-11-2003; operative 9-11-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 37).
5. Amendment of section heading, section and Note filed 2-1-2010 as an emergency; operative 2-1-2010 (Register 2010, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-2-2010 or emergency language will be repealed by operation of law on the following day.
6. Amendment of section heading, section and Note refiled 7-30-2010 as an emergency; operative 7-30-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-28-2010 or emergency language will be repealed by operation of law on the following day.
7. Reinstatement of section as it existed prior to 2-1-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 47).
8. Amendment of section heading, section and Note refiled with additional amendments 12-1-2010 as an emergency; operative 12-1-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-1-2011 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 12-1-2010 order, including editorial correction redesignating subsection (i) as new subsection (g), transmitted to OAL 3-1-2011 and filed 4-12-2011 (Register 2011, No. 15).
10. Amendment filed 8-10-2017; operative 8/10/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 32).