Section R4-39-405. Student Loans and Financial Aid

A.      In this Section, an “academic year” means at least 30 weeks of instruction.

B.       A licensed private institution that receives, on behalf of a stu- dent, student loan or financial aid funds provided by a federal, state, or local government or from a federal student financial assistance program governed by Title IV of the Higher Educa- tion Act of 1965, 20 USC 1070 et seq. as amended, shall col- lect and disburse the monies in the manner prescribed by the applicable federal, state, or local regulations.

C.      A licensed private non-accredited institution that receives, on behalf of a student, student loan or financial aid funds pro- vided by a private entity including but not limited to a bank, financing company, credit card company,  or other lending source shall ensure that the monies are collected and disbursed in the following manner:

1.        Amounts equal to or less than $5,000 may be disbursed as a single disbursement, regardless of program length.

2.        Amounts greater than $5,000 shall:

a.         Be disbursed in two or more equal disbursements; and

b.        Have the second disbursement occur after the mid- point of the academic year for clock hour institutions or after the beginning of the second semester, quar- ter, trimester, or other term for term-based institu- tions.

Historical Note

New Section made by final rulemaking at 11 A.A.R.

2262, effective August 6, 2005 (Supp. 05-2).