11 KAR 3:025. Eligible program.
RELATES TO: KRS 164.744(1), 164.748(1), (3), (14), 164.753(2), 164.766, 20 U.S.C. 1088(e)
STATUTORY AUTHORITY: KRS 13A.100(1), 164.746(6), 164.748(4), 34 C.F.R. 682.401(b)(10)(ii)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 164.744(1) empowers the authority to insure loans to students, provided that the loans meet the criteria of the federal Act. Pub.L. 102-325, enacted July 23, 1992, reauthorized the federal Act and made substantial changes in the insured student loan programs. In order for an otherwise eligible student to benefit from an authority insured student loan, the student must be enrolled or accepted for enrollment at a participating institution in an eligible program of study. This administrative regulation is necessary to prescribe the eligibility of programs of study.
Section 1. General. For loans disbursed prior to July 1, 1993, an otherwise eligible student may borrow an authority insured student loan or benefit from an authority insured student loan to the parent of the student, if the student is enrolled or accepted for enrollment at a participating institution in a program of study that:
(1) Admits as regular students only persons who:
(a) Have a high school diploma;
(b) Have the recognized equivalent of a high school diploma;
(c) Are beyond the age of compulsory school attendance in the state in which the institution is located, and for the Robert T. Stafford Federal Student Loan and the federal PLUS Loan programs, have the ability to benefit from the education or training offered; or
(d) Are not enrolled in elementary or secondary school;
(2)(a) Leads to a bachelor's, associate, graduate, or professional degree;
(b) Is at least a two (2) year program that is acceptable for full credit toward a bachelor's degree;
(c) Is at least a one (1) year training program leading to a certificate, degree, or other recognized educational credential that prepares a student for gainful employment in a recognized occupation;
(d) Is, for a proprietary institution of higher education or a postsecondary vocational institution, at least a six (6) month training program leading to a certificate, degree, or other recognized educational credential that prepares a student for gainful employment in a recognized occupation;
(e) Is, for a proprietary institution of higher education or a postsecondary vocational institution, a program of postsecondary vocational or technical education leading to a degree, certificate, or other recognized educational credential that:
1. Is designed to provide occupational skills more advanced than those generally offered at the high school level and to fit individuals for useful employment in recognized occupations;
2. In the case of an institution using clock hours to measure academic progress, is no less than 300 clock hours of supervised training;
3. In the case of an institution using credit hours or units to measure academic progress, is no less than eight (8) semester or trimester hours or units or twelve (12) quarter hours or units; and
4. In the case of a flight school program, maintains current valid certification by the Federal Aviation Administration; or
5. Is at least a one (1) year training program for graduates of accredited health professionals programs that is provided by a hospital or health-care facility, and leads to a degree or certificate.
Section 2. For loans disbursed on or after July 1, 1993:
(1) An eligible program shall consist of at least:
(a) 600 clock hours of instruction, sixteen (16) semester hours, or twenty-four (24) quarter hours, offered during a minimum of fifteen (15) weeks, in the case of a program that:
1. Provides a program of training to prepare students for gainful employment in a recognized profession; and
2. Admits students who have not completed the equivalent of an associate degree; or
(b) 300 clock hours of instruction, eight (8) semester hours, or twelve (12) hours, offered during a minimum of ten (10) weeks, in the case of:
1. An undergraduate program that requires the equivalent of an associate degree for admissions; or
2. A graduate or professional program.
(2) Notwithstanding subsection (1) of this section, programs of less than 600 clock hours, but greater than 300 clock hours, in length shall be eligible if approved by the secretary, provided that the program shall at a minimum have a verified rate of completion of at least seventy (70) percent and a verified rate of placement of at least seventy (70) percent. (19 Ky.R. 1677; eff. 3-4-93.)