Section R4-39-602. Claims

A.      The Board shall investigate a claim against the Fund and find:

1.        The claim is valid if:

a.         Student educational records confirm that the claim is filed by a person injured as defined in A.R.S. § 32- 3071(7); and

b.        The claim is filed within one year after the closed institution ceases operation;

2.        The claim is invalid:

a.         As specified in A.R.S. § 32-3075(B);

b.        Because a student participates in a “teach-out.” As used in this subsection, “teach-out” means a student from a closed institution voluntarily transfers to another institution where the student receives all the instruction for which the student originally paid, but did not receive from the closed institution; or

c.         Because a student from a closed institution voluntar- ily transfers to another institution and receives dif- ferent training for an additional cost from what the student paid at the closed institution.

B.       If the Board finds a claim to be valid, the Board shall deter- mine the amount and the party to be paid as follows:

1.        The claim payment shall include only the actual amount of tuition and fees paid in cash or with a student loan. The Board shall not make a claim payment for a grant, schol- arship, or debt owed to another state, local, or federal governmental agency.

2.        A claim payment shall be made first to the student loan holder for the amount owed on the loan, and then to the student or the parent for the amount already paid on the loan or cash payments.

C.      The Board shall pay a valid claim within 120 days of the date of the public meeting at which the claim is considered.

D.      A claimant who is not satisfied with the Board’s decision on a claim may file a motion for hearing as allowed under A.R.S. Title 41, Chapter 6, Article 10.

Historical Note

Adopted effective August 14, 1990 (Supp. 90-3).

Amended by final rulemaking at 7 A.A.R. 4256, effective September 12, 2001 (Supp. 01-3).