Section 2720.30  Institutional Eligibility

a)         Institutional eligibility requirements are specified in federal regulations.  Eligible postsecondary institutions include universities, colleges, graduate schools, schools of nursing, business, trade, technical and vocational schools.  Correspondence institutions/programs are not eligible.

b)         Institutions must have executed a Program Participation Agreement with ED in order to participate in ISAC-guaranteed loan programs.  (See 34 CFR 668.14.)

c)         An institution may not engage in loan origination activities. This prohibition shall not apply if the institution has an ED-approved Origination Agreement on file with ISAC and the institution was previously approved as an educational lender as required by federal regulations.

d)         Approved institutions shall provide ISAC with the current enrollment status of students whom the institution has certified as eligible borrowers in accordance with federal regulations.  (See 34 CFR 682.610(c).)

e)         Applicant and approved institutions must demonstrate administrative capability and financial responsibility, as defined by federal regulations, in order to begin and to continue participation in ISAC-guaranteed loan programs.  (See, e.g., 34 CFR 668.14, 668.15 and 668.16.)

f)         Institutions wishing to participate in ISAC-guaranteed loan programs shall submit an application that shall include, but not be limited to:  documentation from the U.S. Department of Education (ED) and the state in which it operates demonstrating authorization to offer educational programs; previous audit and compliance reviews conducted by other guarantors and ED; proof of accreditation; audited financial statements; student catalogs; promotional materials; documentation relating to student withdrawal rates; and other similar information requested by ISAC to show the institution's qualifications for participation. Participation will be decided by an examination of application materials and a determination of compliance with federal laws and regulations and State statutes and rules.  Institutions may appeal an administrative decision denying participation or limiting eligibility in accordance with ISAC appeal procedures.  (See 23 Ill. Adm. Code 2700.70.)  Institutions denied participation shall be eligible to reapply one year from the date of the initial ISAC letter denying eligibility.

g)         Institutions not maintaining the standards of administrative capability or financial responsibility demonstrated in their original applications for participation, or required by federal regulations, may be subject to administrative limitation, suspension or termination proceedings. (See 23 Ill. Adm. Code 2790.)

h)         A foreign postsecondary institution, located outside the United States, is eligible to participate in ISAC-guaranteed loan programs provided it produces evidence to ISAC of current eligibility with ED (e.g., Program Participation Agreement, Institutional Eligibility Notice, etc.) or documentation of such eligibility is available directly from ED.  (See 34 CFR 668.15(h).)

(Source:  Amended at 38 Ill. Reg. 13374, effective July 1, 2014)