KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY

Division of Student and Administrative Services

(Amendment)

 

††††† 11 KAR 8:030. Teacher scholarships.

 

††††† RELATES TO: KRS 164.740, 164.744(2), 164.753(3), 164.769

††††† STATUTORY AUTHORITY: KRS 164.748(4), 164.753(3), 164.769(5), (6)(f)

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 164.744(2) authorizes the authority to provide scholarships and KRS 164.753(3) requires the Kentucky Higher Education Assistance Authority to promulgate administrative regulations pertaining to standards for scholarship programs. KRS 164.769 establishes a teacher scholarship program and requires the Kentucky Higher Education Assistance Authority to establish the terms and conditions for the award, cancellation, and repayment of teacher scholarships, awarded under KRS 164.769 and under prior teacher scholarship programs administered by the Kentucky Higher Education Assistance Authority. This administrative regulation establishes selection criteria, disbursement procedures, cancellation of repayment procedures and repayment obligations related to scholarships provided under the program.

 

††††† Section 1. Definitions. (1) "Authority" is defined in KRS 164.740(1).

††††† (2) "Critical shortage area" is defined in KRS 164.769(2)(a).

††††† (3) "Default" means the status of an obligation under this program that has entered repayment and upon which no payment has been made for a cumulative period of 180 days following the repayment begin date for the obligation.

††††† (4) "Eligible program of study" is defined in KRS 164.769(2)(b).

††††† (5) "Expected family contribution" is defined in KRS 164.769(2)(c).

††††† (6) "Kentucky Teacher Internship Program" or "KTIP" means the one (1) year of supervision, assistance, and assessment that is:

††††† (a) Required by KRS 161.030 and established in 16 KAR 7:010; and

††††† (b) Also referenced as the beginning teacher internship.

††††† (7) "Participating institution" is defined in KRS 164.769(2)(d).

††††† (8) "Professional Teaching Certificate" means the document issued to:

††††† (a) An individual upon successful completion of the beginning teacher internship; or

††††† (b) An applicant for whom the testing and internship requirement is waived under KRS 161.030 based on preparation and successful completion of the assessments.

††††† (9) "Public school" means the common schools of the Commonwealth providing preschool, elementary, middle school, or secondary instruction.

††††† (10) "Qualified teaching service" is defined in KRS 164.769(2)(e).

††††† (11) "Semester" is defined in KRS 164.769(2)(f).

††††† (12) "Summer term" is defined in KRS 164.769(2)(g).

††††† (13) "Teaching" means performing continuous classroom instruction that:

††††† (a) Is:

††††† 1. Pursuant to a professional teaching certificate in a position for which regular teacher certification is a prerequisite; or

††††† 2. During participation in the Kentucky Teacher Internship Program (KTIP); and

††††† (b) Shall not include substitute teaching.

 

††††† Section 2. Eligibility of Renewal Applicants and Selection Process. (1) Applicants shall complete the Teacher Scholarship Application set forth in 11 KAR 4:080, Section 1(3), according to its instructions. The applicant shall ensure that the completed application and supporting data indicating the applicantís financial need are received by the authority on or before May 1, or the next regular business day if May 1 falls on a weekend or holiday preceding the academic year for which the award is requested.

††††† (2) Eligibility of renewal applicants. A person who previously received a loan or scholarship pursuant to KRS 164.769 shall be eligible to apply for and be considered for a renewal teacher scholarship if, at the time of application and disbursement, the renewal applicant has made satisfactory progress toward completion of the eligible program of study in accordance with standards prescribed by the participating institution.

††††† (3) After awards are made to all qualified renewal applicants, applicants shall be considered and teacher scholarships shall be awarded to recipients in the following order until funds are depleted:

††††† (a) Initial applicants who meet the standards and requirements established by the Education Professional Standards Board pursuant to KRS 161.028 and have been unconditionally admitted to a teacher education program shall be ranked in ascending order by expected family contribution.

††††† (b) Initial applicants who have not yet been admitted to a teacher education program but who meet the standards and requirements established by the Education Professional Standards Board pursuant to KRS 161.028 for admission to a teacher education program shall be ranked in ascending order by expected family contribution.

††††† (c) Otherwise eligible initial applicants seeking admission to a teacher education program shall be ranked in ascending order by expected family contribution.

 

††††† Section 3. Award Maximums. (1) The amount of a teacher scholarship award shall be calculated by determining the studentís total cost of education minus expected family contribution and the amount of financial aid received or expected to be received during the academic period. The amount of financial aid received or expected to be received during the academic period shall not include any amounts available from any student loan or work-study programs.

††††† (2) The maximum teacher scholarship award for a student classified as a junior, senior, post baccalaureate, or graduate shall be $1,250 for a summer session, $2,500 for a semester, and $5,000 for an academic year (exclusive of a summer session).

††††† (3) The maximum teacher scholarship award for a student classified as a freshman or sophomore shall be $325 for a summer session, $625 for a semester, and $1,250 for an academic year (exclusive of a summer session).

††††† (4) The maximum award to an eligible student enrolled less than full time in the last semester or summer term during which a baccalaureate, post baccalaureate or masterís degree will be completed shall be:

††††† (a) $210 per credit hour if the student is enrolled during a regular semester; or

††††† (b) $105 per credit hour if the student is enrolled in a summer term.

 

††††† Section 4. †Disbursements. (1) Disbursement of a teacher scholarship shall be made at the beginning of each semester or summer session and each disbursement shall be evidenced by a promissory note, prescribed by the authority, in which the scholarship recipient shall agree to repay the scholarship funds or render qualified teaching service in lieu thereof.

††††† (2) The monies awarded under the Teacher Scholarship Program shall be transmitted directly to the participating institution on behalf of all students eligible to receive the scholarship by electronic funds transfer.

††††† (3) The authority shall send to the participating institution a disbursement roster containing each recipientís name and Social Security number.

††††† (4) The participating institution shall hold the funds solely for the benefit of the student eligible to receive the scholarship and the authority until the recipient has registered for classes for the period of enrollment for which the scholarship is intended.

††††† (5) Upon the recipientís registration, the participating institution shall immediately credit the recipientís account and notify the recipient in writing that it has so credited that account, and deliver to the recipient any remaining scholarship proceeds.

††††† (6) The participating institution shall indicate on the disbursement roster the date funds were either credited to the studentís account or disbursed to the student, the name of a recipient for whom funds are being returned, the amount being returned, and the reason funds are being returned.

††††† (7) If a recipient does not register for the period of enrollment for which the scholarship was awarded, or a registered student withdraws or is expelled prior to the first day of classes of the period of enrollment for which the scholarship is awarded, the school shall return the proceeds to the authority pursuant to Section 12 of this administrative regulation.

††††† (8) The school shall retain a copy of the disbursement roster for its records and forward the original roster and any undisbursed scholarship funds to the authority not later than thirty (30) days following receipt of the roster and the funds.

††††† (9)(a) If a recipient subsequently refuses to repay the scholarship on grounds that he was unaware of or did not receive delivery of the scholarship proceeds from the school, upon written request from the authority, the school shall promptly provide documentary evidence to the authority that the recipient received or had funds credited to his student account and was notified of this transaction.

††††† (b) The school shall otherwise reimburse the authority for any amount of the scholarship that is unenforceable absent that documentary evidence.

††††† (c) The obligation of the school to provide the documentary evidence specified in paragraph (a) of this subsection shall continue until the recipientís obligations for repayment of the scholarship is paid in full or otherwise discharged.

 

††††† Section 5. Cancellation. (1) A recipient rendering qualified teaching service in a designated critical shortage area shall remain eligible for the critical shortage credit provided by KRS 164.769(6)(c) if:

††††† (a) The authority determines that an area is no longer a critical shortage area; and

††††† (b) The recipient continues to render qualified teaching service in the area.

††††† (2)(a) If a recipient has received loans or scholarships from more than one (1) program that is administered by the authority, and requires a period of qualified teaching service for repayment or cancellation, the teaching requirements shall not be fulfilled concurrently.

††††† (b) Unless the authority determines otherwise for cause, loans or scholarships from more than one (1) program shall be repaid or cancelled by qualified teaching service in the same order in which they were received.

††††† (c) If a recipient has received a loan or scholarship pursuant to KRS 156.611, 156.613, 164.768, 164.769 or 164.770 during the same semester as receiving a scholarship pursuant to KRS 161.165, the loan or scholarship received pursuant to KRS 156.611, 156.613, 164.768, 164.769 or 164.770 shall be repaid or cancelled by qualified teaching service prior to the scholarship received pursuant to KRS 161.165.

††††† (3) A recipient shall receive cancellation under this program for each semester during which service is provided as specified in KRS 164.769(6)(c) if the recipient:

††††† (a) Has completed the program of study;

††††† (b) Is providing qualified teaching service; and

††††† (c) Is prohibited from participating in KTIP solely as a result of state budget limitations.

††††† (4) Verification of qualified teaching service shall be submitted to the authority in writing, signed by the local school district superintendent or building principal.

 

††††† Section 6. Repayment. (1) A recipient failing to complete the eligible program of study, attain certification after completion of the eligible program of study, or commence rendering qualified teaching service within the six (6) month period following completion of the eligible program of study shall immediately become liable to the authority to pay the sum of all promissory notes and accrued interest thereon, unless the authority grants a deferment for cause.

††††† (2) The interest rate applicable to repayment of a teacher scholarship under this section shall be six (6) percent per annum beginning April 1, 2005. Prior to April 1, 2005, the interest rate shall be twelve (12) percent per annum.

††††† (3) If a repayment obligation subsequently becomes eligible for service credit cancellation as a result of the recipientís provision of teaching service, refund of payments previously made shall not be given to the recipient.

 

††††† Section 7. Default. (1) Upon default on a repayment obligation under this program, the recipientís account shall be transferred to the appropriate agency of the Commonwealth of Kentucky for collections and shall be subject to the collection charges and fees assessed by that agency.

††††† (2) A recipient whose repayment obligation has defaulted and who subsequently begins either providing qualified teaching service in the Commonwealth of Kentucky or participating in KTIP shall be removed from default status.

 

††††† Section 8. †Disability Discharge. †A conditional or permanent discharge of the repayment obligation required by this program shall be granted by the Authority upon submission by the recipient of the documentation required by this section. (1) Conditional discharge. A conditional discharge shall be granted for a maximum two (2) year period, subject to annual review by the Authority, upon the submission of one (1) of the following as proof of the recipientís qualifying disability;

††††† (a) A finding of permanent disability by the Social Security Administration; or

††††† (b) A completed Teacher Scholarship Program Application for Discharge, which shall include a certification by the recipientís treating physician that the recipient is unable to work or earn money and that the condition is expected to persist indefinitely.

††††† (2) Permanent discharge. At the expiration of the two (2) year Conditional Discharge period specified in subsection (1) of this section, the Authority shall grant a permanent discharge to a recipient under this program upon the submission by the recipient of current documentation verifying that the qualifying disability exists at the time the permanent discharge is granted.

 

††††† Section 9. Notifications. A recipient shall notify the authority within thirty (30) days of:

††††† (1) Change in enrollment status;

††††† (2) Cessation of full-time enrollment in an eligible program of study;

††††† (3) Employment in a qualified teaching service position; or

††††† (4) Change of name or address.

 

††††† Section 10. Repayment Schedule. Written notification of demand for repayment shall be sent by the authority to the scholarship recipientís last known address and shall be effective upon mailing. The authority may agree, in its sole discretion, to accept repayment in installments in accordance with a schedule established by the authority. Payments shall first be applied to interest and then to principal on the earliest unpaid promissory note.

 

††††† Section 11. Records. A participating institution shall maintain complete and accurate records pertaining to the eligibility, enrollment and progress of each student receiving aid under this program and the disbursement of funds and institutional charges as may be necessary to audit the disposition of these funds. The institutionís records shall be maintained for at least three (3) years after the student ceases to be enrolled at the institution.

 

††††† Section 12. †Refunds. (1) If a student fails to enroll, withdraws, is expelled from the institution, or otherwise fails to complete the program on or after the studentís first day of class of the period of enrollment or changes enrollment status, the Authority may be due a refund of monies paid to the institution on behalf of that student or a repayment of cash disbursements made to the student for educational expenses.

††††† (2) If the student received financial assistance administered by the authority, the refund and repayment shall be due to the authority for its financial assistance programs in accordance with this section.

††††† (3) The institution shall adopt and implement a fair and equitable refund policy for financial assistance administered by the authority which shall be:

††††† (a) A clear and conspicuous written statement;

††††† (b) Made available to a prospective student, prior to the earlier of the studentís enrollment or the execution of the studentís enrollment agreement, and to currently enrolled students;

††††† (c) Consistently administered by the institution; and

††††† (d) Made available to the authority upon request.

††††† (4) The institutionís refund policy for financial assistance administered by the authority shall either:

††††† (a) Use the same methods and formulas for determining the amount of a refund as the institution uses for determining the return of federal financial assistance funds; or

††††† (b) Be a separate and distinct policy adopted by the institution that is based upon:

††††† 1. The requirements of applicable state law; or

††††† 2. The specific refund standards established by the institutionís nationally-recognized accrediting agency.

††††† (5) The amount of the refund shall be determined in accordance with the educational institutionís refund policy relative to financial assistance funds, except as provided in subsection (7) of this section.

††††† (6) If the institution determines that a refund of financial assistance is due in accordance with its policy, the institution shall allocate to the financial assistance programs administered by the authority the refund and repayment in the following descending order of priority prior to allocating the refund to institutional or private sources of financial assistance:

††††† (a) CAP grant;

††††† (b) KTG;

††††† (c) Go Higher Grant;

††††† (d) Teacher Scholarship;

††††† (e)[(d)] Kentucky Educational Excellence Scholarship;

††††† (f) Kentucky Coal County College Completion Scholarship;

††††† (g)[(e)] National Guard tuition assistance; and

††††† (h) Early Childhood Development Scholarship.

††††† (7)(a) If a teacher scholarship recipient officially or unofficially withdraws from or is expelled by an institution before the first day of classes of the award period, the award shall be deemed an overaward and a full refund and repayment of the teacher scholarship shall be required, notwithstanding any institutional policy to the contrary.

††††† (b) If the institution is unable to document the studentís last date of attendance, any teacher scholarship disbursement for that award period shall be subject to full refund.

††††† (c) If a teacher scholarship recipientís enrollment is terminated with no assessment of tuition and fees by the institution, the full teacher scholarship shall be subject to:

††††† 1. Cancellation, if not yet disbursed; or

††††† 2. Refund if the teacher scholarship has already been disbursed.

††††† (8)(a) The institution shall remit to the authority the amount of funds allocated from the refund amount to the financial assistance programs administered by the authority as soon as possible but no later than thirty (30) days after the end of the term in which the student ceased to be enrolled.

††††† (b) Refunds by the institution transmitted to the authority shall be accompanied by:

††††† 1. The studentís name and Social Security number;

††††† 2. The reason for the refund;

††††† 3. The date of enrollment status change;

††††† 4. The semester and year; and

††††† 5. The calculation used for determining the refund.

 

††††† Section 13. Information Dissemination and Recruitment. The authority shall disseminate information through high school principals, counselors, and school superintendents about this program to potential recipients. The participating institution shall provide assurances that program information will be disseminated to students enrolled at the institution. The participating institution shall actively recruit students from minority population groups for participation in this program.

 

††††† Section 14. Incorporation by Reference. (1) " Teacher Scholarship Program Application for Discharge", November 2007, is incorporated by reference.

††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Higher Education Assistance Authority, 100 Airport Road, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

 

LISA PAYNE, Chair

††††† APPROVED BY AGENCY: August 28, 2014

††††† FILED WITH LRC: September 11, 2014 at 10 a.m.

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Tuesday, October 21, 2014, at 10:00 a.m. Eastern Time at 100 Airport Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by 5 workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until October 31, 2014. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

††††† CONTACT PERSON: Ms. Diana L. Barber, General Counsel, Kentucky Higher Education Assistance Authority, P.O. Box 798, Frankfort, Kentucky 40602-0798, phone (502) 696-7298, fax (502) 696-7293.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Rebecca Gilpatrick†

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: This administrative regulation establishes the terms and conditions for the award, cancellation, and repayment of teacher scholarships awarded under KRS 164.769 administered by the Kentucky Higher Education Assistance Authority.

††††† (b) The necessity of this administrative regulation: KRS 164.744(2) authorizes the Authority to provide scholarships, and KRS 164.753(3) requires the Kentucky Higher Education Assistance Authority to promulgate administrative regulations pertaining to standards for scholarship programs. This administrative regulation is necessary to establish the terms and conditions for the award, cancellation, and repayment of teacher scholarships, awarded under KRS 164.769 administered by the Kentucky Higher Education Assistance Authority.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 164.744(2) authorizes the Authority to provide scholarships, and KRS 164.753(3) requires the Kentucky Higher Education Assistance Authority to promulgate administrative regulations pertaining to standards for scholarship programs. KRS 164.769 establishes a teacher scholarship program and requires the Kentucky Higher Education Assistance Authority to establish the terms and conditions for the award, cancellation, and repayment of teacher scholarships under KRS 164.769. This administrative regulation establishes selection criteria, disbursement procedures, cancellation of repayment procedures and repayment obligations related to scholarships provided under the program.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation currently assists in the effective administration of the Teacher Scholarship Program by establishing the terms and conditions for the award, cancellation, and repayment of teacher scholarships, awarded under KRS 164.769 administered by the Kentucky Higher Education Assistance Authority.

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: The amendment will change the existing administrative regulation by updating the priority order of programs for purposes of refunds initiated by participating institutions and repayments required from award recipients.

††††† (b) The necessity of the amendment to this administrative regulation: This amendment is necessary to incorporate recently established student assistance programs into the refund and repayment priority order.

††††† (c) How the amendment conforms to the content of the authorizing statutes: The amendment conforms to the content of the authorizing statutes by enhancing the priority order of programs for application of refunded award funds returned by an institution on behalf of an award recipient as well as for application of recipient repayment of funds.

††††† (d) How the amendment will assist in the effective administration of the statutes: The amendment will assist in the effective administration of the statutes by providing a more up-to-date priority order for refund and repayment of previously disbursed award funds under this program.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Any Teacher Scholarship recipient could potentially be impacted by the amendment to this administrative regulation anytime an institution has determined that a refund of financial assistance is due to the authority on behalf of a student-recipient or in the event that an award recipient is required to repay funds previously disbursed by KHEAA.

††††† (4) Provide an assessment of how the above group or groups will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment: Since the priority order of programs to which refund or repayment of student financial assistance will be applied is being revised pursuant to this regulatory amendment, refunds or repayments will be applied in a different order for Teacher Scholarship recipients than previously applied. Refunds will now be applied to Go Higher Grant awards before application to Teacher Scholarship awards.

††††† (5) Provide an estimate of how much it will cost to implement this administrative regulation:

††††† (a) Initially: No cost.

††††† (b) On a continuing basis: Same as 5(a).

††††† (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The Teacher Scholarship Awards are funded from net lottery revenues transferred to the Authority for grant and scholarship programs while administrative costs are borne by the Authority through receipts of the Authority.

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No increase in fees or funding will be necessary to implement the amendment to this administrative regulation.

††††† (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: The administrative regulation does not establish any fees, nor directly or indirectly increase any fees.

††††† (9) TIERING: Is tiering applied?†† Tiering was not applied to the amendment of this administrative regulation. The concept is not applicable to this amendment of this administrative regulation. The administrative regulation is intended to provide equal opportunity to participate within parameters, and consequently does not inherently result in disproportionate impacts on certain classes of regulated entities or address a particular problem to which certain regulated entities do not contribute. Disparate treatment of any person or entity affected by this administrative regulation could raise questions of arbitrary action on the part of the agency. The "equal protection" and "due process" clauses of the Fourteenth Amendment of the U.S. Constitution may be implicated as well as Sections 2 and 3 of the Kentucky Constitution. The regulation provides equal treatment and opportunity for all applicants and recipients.

 

FISCAL NOTE ON STATE AND LOCAL GOVERNMENT

 

††††† 1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? This administrative regulation will impact the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority.

††††† 2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 164.744(2), 164.753(3), 164.769.

††††† 3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. The administrative regulation will result in no additional expenditures by or revenues to the Authority during the first full year of its effectiveness.

††††† a. How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This regulation will not generate any revenue.

††††† b. How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This regulation will not generate any revenue.

††††† c. How much will it cost to administer this program for the first year? No costs are associated with this regulation.

††††† d. How much will it cost to administer this program for subsequent years? No costs are associated with this regulation.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-):

††††† Expenditures (+/-):

††††† Other Explanation: