Registered Nursing (Fast-Track) Service Cancelable Loan Program REGULATIONS. 2007-2008 Award Year

Registered Nursing (Fast-Track) Service Cancelable Loan Program REGULATIONS 2007-2008 Award Year July 1, 2007 Georgia Student Finance Commission 2082 East Exchange Place, Suite 200 Tucker, Georgia 30084

2007-2008 AWARD YEAR REGISTERED NURSING (FAST-TRACK) SERVICE CANCELABLE LOAN PROGRAM REGULATIONS SECTION PAGE I. REGULATIONS TO ADMINISTER THE REGISTERED NURSING (FAST-TRACK) SERVICE CANCELABLE LOAN PROGRAM 3 A. GENERAL APPLICATION REQUIREMENTS 4 B. GENERAL SELECTION PROCEDURES 6 C. LOAN AMOUNT, INTEREST RATES AND FEES 8 D. DISBURSEMENT AND ACCOUNTING PROCEDURES 9 E. DARTON COLLEGE OR ARMSTRONG ATLANTIC STATE UNIVERSITY DOCUMENTATION REQUIREMENTS 11 F. NOTICES, REQUESTS, DEMANDS AND COMMUNICATIONS 11 G. RECORD RETENTION 12 II. DEFINTIONS 13 2007-2008 RN (Fast-Track) Service Loan Page 2 of 14

REGISTERED NURSING (FAST-TRACK) SERVICE CANCELABLE LOAN PROGRAM 2007-2008 RN (Fast-Track) Service Loan Page 3 of 14

I. REGISTERED NURSING (FAST-TRACK) SERVICE CANCELABLE LOAN A. GENERAL APPLICATION REQUIREMENTS Students may be considered for participation in the Registered Nursing (Fast- Track) Service Cancelable Loan Program upon meeting the screening and selection requirements of a Sponsoring Facility and Darton College or Armstrong Atlantic State University, which include but are not limited to the following. 1. Application Requirements a. The Student must submit a completed employment application to one or more of the Sponsoring Facilities at either the Sponsoring Facility or at a central location to be established by the Sponsoring Facilities. b. The Student must submit a completed admission application, along with copies of the Student s transcript(s) and any other documentation required for admission, as well as a Free Application for Federal Student Aid (FAFSA) to Darton College or Armstrong Atlantic State University. Darton College or Armstrong Atlantic State University will screen all applications for the minimum Service Cancelable Loan Program requirements. These requirements include, but are not limited to, prior academic achievement, and a Programming Aptitude Test. All students who apply for the Educational Program should receive notice of Darton College s decision. Darton College or Armstrong Atlantic State University, in its sole discretion, may enroll students in its Educational program who are not eligible to participate in the Service Cancelable Loan Program. c. A student must file the application online or in the institution s financial aid office on or before the last day of the academic term (semester or quarter) or the student s withdrawal date, whichever occurs first, in order to be paid for that academic term. The last day of the academic term is the last day of classes or exams for the institution, whichever occurs later. The withdrawal date is the date the student withdraws, as determined by the institution. The institution must determine the withdrawal date in accordance with the procedures set forth for determining the withdrawal date under the Higher Education Act of 1965, as amended. Supplemental documentation required by the institution or the Authority to support or verify a student s application information may be submitted after the deadline without jeopardizing the student s eligibility. 2007-2008 RN (Fast-Track) Service Loan Page 4 of 14

2. Service Cancelable Loan Requirements A Student who has received admission into the Educational Program and an intent-to-hire contract from a Sponsoring Facility, must meet the following additional requirements to receive a Service Cancelable Loan: a. The Student must enroll in the Educational Program at Darton College or Armstrong Atlantic State University. b. The Student must be enrolled at least half-time. c. The Student must be a United States Citizen or an Eligible Non-citizen, according to Federal Title IV requirements, for a minimum of 12 consecutive months immediately preceding the first day of classes of the school term for which the Service Cancelable Loan is sought. d. The Student must be a Resident of Georgia, according to the Georgia Student Finance Authority, for a minimum of 12 consecutive months immediately preceding the first day of classes of the school term for which the Service Cancelable Loan is sought. 3. With regards to financial assistance, the Student may be required to: a. If requested by Darton College or Armstrong Atlantic State University, in its discretion, the Student will need to complete the Free Application for Federal Student Aid (FAFSA), or other application(s) or form(s), as required by the institution. A minimum family income is not part of the eligibility requirements for this program. b. In addition to applying for financial aid under the Service Cancelable Loan Program, the Student must apply for all available non-repayable financial aid. 4. Students Ineligible to Receive a Service Cancelable Loan Even if a Student meets all of the above-criteria, the student is ineligible to receive a Service Cancelable Loan if: a. The Student owes a refund as a result of overpayment to the Student from a Federal Pell Grant (previously known as the Basic Educational Opportunity Grant), Supplemental Educational Opportunity Grant (SEOG), or Student Incentive Grant (SIG) as may be reflected on the Student Aid Report or Financial Aid Transcript or other document approved by the Authority to be used for certification. 2007-2008 RN (Fast-Track) Service Loan Page 5 of 14

b. The Student is in default on any loan received under the Federal Perkins Loan Program (including NDSL loans), Federal Family Education Loan Program, Federal Direct Loan Program, or the State Direct Student Loan and has not made satisfactory arrangements to repay the debt with the current holder. 5. Eligible Fields of Study and Programs: The Authority has designated Registered Nursing as a critical shortage field. Therefore, the Educational Program at Darton College designated and recognized by Darton College as a program in Registered Nursing qualifies for the Service Cancelable Loan. B. GENERAL SELECTION PROCEDURES 1. Sponsoring Facilities a. The Sponsoring Facilities should jointly establish a central location where all applications and other forms required for a Student to apply for the Service Cancelable Loan Program should be made available. The Student shall be permitted to submit applications for employment at this central location. b. Sponsoring Facilities will initiate a recruitment drive and allow all applicants to undergo preliminary screening. At a minimum, the preliminary screening must include drug testing, a credit check, and a programming aptitude test. c. Sponsoring Facilities will make offers to eligible applicants, based on the results of the screening process. The Sponsoring Facility shall execute and provide the Student with a valid intent-to-hire contract. d. Any advertising initiated by any or all of the Sponsoring Facilities shall explicitly state the information, including forms and other items that a Student must submit to be considered for the Service Cancelable Loan Program. Prior to circulation, Regents must approve all Sponsoring Facilities e. The Sponsoring Facilities should jointly establish a central location where all applications and other forms required for a Student to apply for the Service Cancelable Loan Program should be made available. The Student shall be permitted to submit applications for employment at this central location. 2007-2008 RN (Fast-Track) Service Loan Page 6 of 14

f. Sponsoring Facilities will initiate a recruitment drive and allow all applicants to undergo preliminary screening. At a minimum, the preliminary screening must include drug testing, a credit check, and a programming aptitude test. g. Sponsoring Facilities will make offers to eligible applicants, based on the results of the screening process. The Sponsoring Facility shall execute and provide the Student with a valid intent-to-hire contract. h. Any advertising initiated by any or all of the Sponsoring Facilities shall explicitly state the information, including forms and other items that a Student must submit to be considered for the Service Cancelable Loan Program. Prior to circulation, Regents must approve all advertisement material. 2. Darton College or Armstrong Atlantic State University a. Darton College or Armstrong Atlantic State University will provide and accept from Students all forms, including financial aid forms, required for the Student to be considered for admission into the Educational Program and make an independent decision regarding the student s acceptance to the Educational Program. b. Upon acceptance into the Educational Program and the award of a Service Cancelable Loan, Darton College s or Armstrong Atlantic State University s financial aid office will certify to the Authority the cost of attendance ( COA ) as designated by the budget set for the Educational Program. Darton College or Armstrong Atlantic State University will take into consideration all other non-repayable financial aid that the Student is receiving. The completed application (Parts A, B, & C) shall be transmitted to Authority in accordance with previously established procedures established for the transmission of applications to the Authority. For the purposes of the Educational Program, the COA certification is broken down into two categories. The first category includes tuition and fees and any other direct institutional costs normally included in the budget for the Educational Program. The second category includes all cost of living expenses such as room and board, day care, transportation, books, supplies, the five percent (5%) loan origination fee, and any other cost of living expenses the institution normally includes in the budget for the Educational Program. c. At the time of entrance counseling, Darton College or Armstrong Atlantic State University shall cause the Student to review and execute the Promissory Note and Service Cancellation Contract. Darton College or Armstrong Atlantic State University will also cause the execution on the Promissory Note to be notarized. The Promissory 2007-2008 RN (Fast-Track) Service Loan Page 7 of 14

3. The Authority Note, Service Cancellation Contract, and the Application will be submitted to Authority. a. Upon receipt of the completed application form, as required by the institution, the Authority will create a pre-approved loan record from the application information received from Darton College or Armstrong Atlantic State University. A Service Cancellation Contract will be created and forwarded to Darton College or Armstrong Atlantic State University. b. The Promissory Note, Service Cancellation Contract, and the FAFSA submitted to the Authority will become a part of the official Student s file. c. The Authority shall send all disbursements to Darton College or Armstrong Atlantic State University for all Students whose files have been completed. d. Un-disbursed portions of the Student s Service Cancelable Loan will be canceled if a Student withdraws from or transfer out of the Educational Program after the Service Cancelable Loan has been approved. C. LOAN AMOUNT, INTEREST RATES AND FEES 1. Maximum Annual Amount The maximum amount of funding a Student may receive through the Service Cancelable Loan Program in an academic year shall be Four Thousand, Five Hundred Dollars ($4,500). 2. Overall Maximum Amount The overall maximum amount a Student may receive through the Service Cancelable Loan Program shall be Nine Thousand Dollars ($9,000). 3. Interest Rates a. Should a Student fail to satisfy the requirements to cancel any or the entire Service Cancelable Loan amount received by the Student through the performance of service, the student shall pay interest on the cash repayments of the Service Cancelable Loan as follows. The interest rate on a Service Cancelable Loan shall accrue at a variable interest rate, applicable to each July 1 through June 30 period, that equals the bond equivalent rate of the 91-day Treasury Bills (T-bills) auctioned at the final auction prior to June 1 immediately preceding the July 1-June 30 period 2007-2008 RN (Fast-Track) Service Loan Page 8 of 14

plus 1%, not to exceed 10%. Interest shall begin to accrue on the disbursement amount at the end of the Borrower s grace period or when they obtain non-qualifying employment, whichever is first. b. Interest Earnings on loans disbursed and in the loan status of in school in deferment and in service repayment, will be recovered from the annual allocation of funds to the Darton College Nursing Program, as determined by the Board of the Georgia Student Finance Authority Assembly for service cancelable and guaranteed student loans. 4. Fees The Authority charges a loan origination fee equal to five percent (5%) of the loan amount. The fee will be deducted proportionately from each disbursement of the loan. The origination fee is refundable only if a disbursement is canceled or repaid in full within One Hundred and Twenty (120) days of disbursement. 5. Cancellation of Interest and Fees All interest and fees are eligible to be canceled through the satisfactory performance of service as specified in the Service Cancelable Contract. D. DISBURSEMENT AND ACCOUNTING PROCEDURES 1. Disbursement of the Service Cancelable Loan Proceeds a. The Authority will send all disbursement checks, or Electric Fund Transfers (EFTS) to the order of made payable to the Student and Darton College or Armstrong Atlantic State University, directly to Darton College or Armstrong Atlantic State University s business office. b. As an internal control to insure timely disbursement of funds, Darton College or Armstrong Atlantic State University shall generate a daily Disbursement Error Listing report for any disbursements scheduled, but not made to the Student. This report will be given to the School Liaison Officer, who is responsible for researching and resolving the issue. c. Darton College or Armstrong Atlantic State University will make at least two disbursements of Service Cancelable Loan funds during each academic year that the Authority allocates funds for the Service Cancelable Loan Program. d. Darton College or Armstrong Atlantic State University shall return to the Authority any disbursement check if: 2007-2008 RN (Fast-Track) Service Loan Page 9 of 14

1. The disbursement will cause an over award to the Student. If an over award is made, the overage must be adjusted in the next disbursement if the Service Cancelable Loan is not fully disbursed. If the Service Cancelable Loan is fully disbursed, no adjustment is necessary and the Student shall not be required to repay the over award prior to the repayment period. Over award adjustments should be calculated using the school s current policy. 2. Darton College or Armstrong Atlantic State University fails, neglects or is unable to make the disbursement to the Student within fifteen (15) days of receipt of the disbursement by the College or University. 3. No disbursement shall be made to a Student later than ninety (90) days after the end of the period in which the Student is enrolled. Any disbursement received or held by Darton College or Armstrong Atlantic State University later than the ninety (90) days after the end of a Student s enrollment period shall be returned to the Authority, as soon as practical. 4. The Student withdraws, and is not otherwise eligible to receive loan funds. a. The Student never enrolls. b. The Student is not making satisfactory academic progress as determined by Darton College or Armstrong Atlantic State University s existing policy. e. Darton College or Armstrong Atlantic State University shall maintain documentation that Student Service Cancelable Loan funds were received and released to the Student. f. Each month, Darton College or Armstrong Atlantic State University must verify the Student s eligibility to receive the funds by checking enrollment status and academic progress. If at anytime the Student is found to be ineligible, Darton College or Armstrong Atlantic State University shall transmit this information to the Authority and all future disbursements will be canceled. Cancellation of the Service Cancelable Loan under this provision will cause the Student s grace period to begin. 2. Procedures for Returning Funds of Students that have withdrawn or Received Over Award If a Student withdraws from the Service Cancelable Loan Program or an over award is determined, Darton College or Armstrong Atlantic State 2007-2008 RN (Fast-Track) Service Loan Page 10 of 14

University shall calculate any potential refund due the Authority and return those funds to the Authority using the same procedures as outlined under the Darton College s or Armstrong Atlantic State University s current policies regarding these matters. Darton College or Armstrong Atlantic State University shall provide all Students participating in the Service Cancelable Loan Program with a copy of the school refund policy. 3. Checks Returned in Error If, after a disbursement is returned to the Authority in error, and Darton College or Armstrong Atlantic State University determines that the Student was indeed eligible, the Financial Aid Administrator of Darton College or Armstrong Atlantic State University shall submit, in accordance with the notice provision of this Agreement, an explanation of the circumstances and request a reissuance of the disbursement. The Authority will use its best efforts to honor Darton College s or Armstrong Atlantic State University s request provided all terms and provisions of the Service Cancelable Loan Program are being meet by the Student. E. DARTON COLLEGE OR ARMSTRONG ATLANTIC STATE UNIVERSITY DOCUMENTATION REQUIREMENTS Darton College or Armstrong Atlantic State University shall compile and maintain an official file on every Student receiving a Service Cancelable Loan. The file must include the following: a. A fully executed and valid intent-to-hire contract by and between the Student and a Sponsoring Facility. b. A financial aid transcript or other document used for determining the Student s eligibility to participate in the Service Cancelable Loan Program. c. A copy of the Student Aid Report (SAR), or other application or form required by the institution. d. A copy of the application(s) use to determine that the Student should be admitted to the Educational Program at Darton College or Armstrong Atlantic State University. F. NOTICES, REQUESTS, DEMANDS AND COMMUNICATIONS All written communications to the Authority may be made in writing through email or facsimile transmission (which shall be followed by an immediate telephone call to confirm delivery); mailed by first class United States mail; delivered by 2007-2008 RN (Fast-Track) Service Loan Page 11 of 14

overnight carrier (such as, but not limited to, UPS, Federal Express or DHL); or personally delivered. G. RECORD RETENTION 1. Eligible Postsecondary Institutions shall maintain accurate records, books, documents and other evidence concerning the Loan, including, but not limited to individual student files for the later of: a. Three years after the Award Year in which the aid was awarded; or b. For such other period as required by any applicable statue, rule, or regulation; or c. Such other time as requested in writing by the Commission. 2. Documentation contained within individual student files, which supports the original determination of a student's eligibility made by the institution, should be transferred to the student's files for the most current Award Year. Such documentation may include, but is not limited to, copies of Alien Registration Receipt Cards, Georgia State Income Tax Returns, and academic transcripts from previous institutions. As an alternative to the original hard copies, institutions are permitted to maintain these documents in an imaged media format. The imaged media format must be capable of reproducing an accurate, legible, and complete copy of the original document. 3. An institution may be required to retain student records involved in a program review, audit, or investigation for more than the three-year retention period described above. If the three-year retention period expires before the issue in question is resolved, the institution must continue to retain all associated records until resolution is reached. 2007-2008 RN (Fast-Track) Service Loan Page 12 of 14

II. DEFINTIONS Academic Year means a period of time, usually eight or nine months, during which a full-time student would normally be expected to complete the equivalent of two semesters. Applicant means a student who has applied for a Registered Nursing Facilities Service Cancelable Loan. Authority means the Georgia Student Finance Authority. Award Year means three consecutive semesters that begins with the Summer Term and ends with the Spring Term. Cost of Attendance means the expenses, both direct and indirect, incurred by a student and the student s family to finance the cost of receiving a postsecondary education. These expenses include tuition, fees, room, meals, books, supplies, transportation, and personal expenses. Degree means a bachelor s degree at the undergraduate level conferred on students by a postsecondary educational institution upon completion of a unified program of study. Eligible Non-citizen means a person who meets the definition of an eligible non-citizen for purposes of Federal Title IV Programs. Federal Pell Grant means a federal program of non-repayable grant aid which is designed to be the base award for eligible students with federallydetermined financial need. Federal Title IV Programs means student financial aid programs administered by the U.S. Department of Education that are authorized by Title IV of the Higher Education Act of 1965. Full-Time Student means a matriculated student attending an eligible postsecondary educational institution who is enrolled for the equivalent of at least 12 semester credit hours. Grace Period means a period in which the student is unable to find a qualifying position within the twelve (12) months immediately following the student s completion of their approved engineering program. Loan Funds means the advance of monies by the Georgia Student Finance Authority to an eligible student, obligating the student to repay either by service within the State of Georgia or by cash, with interest, to the State of Georgia. 2007-2008 RN (Fast-Track) Service Loan Page 13 of 14

Resident of Georgia means a United States Citizen or an Eligible Noncitizen who meets the requirements of these regulations and all other requirements of the Georgia Residency Requirements for State Programs Regulations. School Term means a typical school semester. Service-Cancelable Loans means funds which the student has to repay and cancel through services rendered. Undergraduate Student means a student who is in attendance at an eligible postsecondary educational institution and who is in the process of obtaining a bachelor s degree. Withdrawal Date means the date the student withdraws, as determined by the institution. The institution must determine the withdrawal date in accordance with the procedures set forth for determining withdrawal date under the Higher Education Act of 1965, as amended. 2007-2008 RN (Fast-Track) Service Loan Page 14 of 14