Rule 268-10-1-.03 - Establishing School Eligibility(1) A school must establish eligibility te participate in the Georgia Program before the Georgia Higher Education Assistance Corporation (GHEAC) will guarantee loans for its students or their parents (borrowers). A school is required to establish eligibility if: (a) The school has never participated in the GHEAC program; or(b) The school has previously participated, but no loans have been guaranteed to borrowers attending that school within the last twelve months.(2) U.S. Department of Education (ED) approval to participate in Title IV Student Aid Programs does not automatically result in approval to participate in the Georgia Program.(3) To establish eligibility to participate in the Georgia Program, a school must first provide GHEAC with a letter requesting approval to participate. GHEAC will respond by providing the school with an Institutional Questionnaire and a list of required documentation.(4) Schools desiring to participate in the Georgia Program must demonstrate eligibility by completing the Institutional Questionnaire and submitting all required documentation.(5) GHEAC may waive the letter requesting approval, the Questionnaire, and the documentation requirements if the applicant school:(a) Has a cohort default rate of 15% or less;(b) Is either a branch location of an institution which has been an active participant in the Georgia Program for at least three years or is a freestanding institution which has been an active participant in another guarantor's guaranteed student loan program during the past three years, or;(c) GHEAC has not received any consumer complaints, program reviews by GHEAC or others indicating program administration problems, or other information indicating the institution may lack the skills or capacity to properly administer student aid programs as required under 34 CFR 668.14 and .15.(6) GHEAC will review the application materials to determine whether the school satisfies the definition of an "eligible institution" as established in federal regulations at 34 CFR 600.2 and 34 CFR 668. Submission of a complete and accurate application (including all requested documentation) will assist with the review process. Financial statements for the current fiscal year are expected to be completed within four months of the end of the fiscal year. Eligibility will be denied should the school fail to provide GHEAC with any requested documentation.(7) Specifically, GHEAC's eligibility review will emphasize whether the school demonstrates that it:(a) Is currently certified by ED to participate in the Guaranteed Loan Programs;(b) Is currently licensed, as required, to provide postsecondary education in the state in which it operates;(c) Is currently accredited or pre-accredited with an ED approved national accreditation agency;(d) Meets financial responsibility requirements described at 34 CFR 668.13;(e) Meets the administrative capability requirements at 34 CFR 668.14 and 668.15;(f) Secured independent biennial financial and compliance audits of its Title IV programs;(7) Only schools which can demonstrate they meet federal eligibility requirements will be accepted for participation in the Georgia Program. GHEAC determines if the school meets federal eligibility requirements using the criteria specified in 34 CFR 668 .13-15. However, the determination will be independent of any determination made by ED. Schools with weaknesses may be subject to denial of participation or, depending on the degree of weaknesses, to a volume limit.(8) If GHEAC denies a request for participation or approves only limited participation in the Georgia Program by a school:(a) The reason for the decision will be included in GHEAC's response to the request; and(b) GHEAC will provide an opportunity for the school to meet with a designated GHEAC official to appeal that decision. GHEAC does not, however, grant an opportunity for appeal, or give reasons for denying the participation or approving only the limited participation of a school, if the school submits its request within six months of a previous denial or limited approval.Ga. Comp. R. & Regs. R. 268-10-1-.03
Ga. L. 1987 p. 556 (Ga. Code Ann. 20-3-261).
ER 268-10-1-0.1-.03 was F. Aug. 31, 1992, eff. Aug. 27, 1992, the date of adoption, to remain in effect for a period of 120 days or until the effective date of a permanent Rule covering the same subject matter superseding said ER, as specified by the Agency.Amended: Permanent Rule entitled "Establishing School Eligibility" adopted. F. Nov. 20, 1992; eff. Dec. 10, 1992.