R 390.1484 Participating school limitation, suspension, or termination; effect.

Rule 84. (1) Limitation, suspension, or termination proceedings shall not affect a participating school's responsibilities or rights that are based on the participating school's prior participation in the educational loan programs, except as provided in subrule (4) of this rule and R 390.1489. (2) A participating school limitation may result in any of the following: (a) A limit on the number or percentage of students enrolled in the participating school who may receive educational loans. (b) A limit, for a stated period of time, on the percentage of a participating school's total receipts from tuition and fees derived from the educational loan programs. (c) A requirement that a participating school obtain a bond, in a specified amount, to assure its ability to meet its financial obligation to students who received educational loans. (d) A hearing as required under the provisions of R 390.1487. (3) A suspension shall remove a participating school's eligibility to participate in the educational loan programs for not more than 60 days, unless 1 of the following occurs: (a) The participating school and the designated official agree to an extension. (b) The designated official begins a limitation or termination proceeding. (c) The designated official begins a limitation or termination proceeding before the suspension period ends. The designated official may extend the suspension period until the completion of that proceeding. (4) A termination shall result in all of the following: (a) End a school's eligibility to participate in the educational loan programs. (b) Prohibit a school from receiving any loan proceeds, or from releasing to a student any loan check or loan proceeds, from a loan for which a guaranty commitment has already been issued. (c) Prohibit a school from certifying new applications for educational loans. (d) Prohibit further disbursement by a school that is a lender under the educational loan programs for which guaranty commitments have already been issued by the authority. (e) Prohibit the authority from increasing any guaranty commitment on a loan for which the guaranty commitment has already been issued. (f) Prohibit further guaranty commitments by the authority for loans to students to attend that school.