Compilation of Rules and Regulations of the State of Georgia Department 265 - GEORGIA STATE BOARD OF REGISTRATION FOR PROFESSIONAL GEOLOGISTS
Department 268 – Georgia Student Finance Commission (GSFC)
This department regulates the administration of student loan programs in Georgia, focusing on ensuring eligible schools and students can participate in state-backed financial aid programs.
Key Areas Covered
1. School Eligibility (Chapter 268-10)
Purpose:
Establishes the criteria and procedures for schools to become eligible to participate in Georgia’s student loan programs.
Requirements for Schools:
Schools must submit a formal application to participate.
Must be accredited and meet financial responsibility and administrative capacity standards.
Should have a satisfactory loan default rate, generally 15% or lower.
Must not have significant consumer complaints.
Must comply with federal regulations as well as state requirements.
Documentation:
Schools provide detailed documents including financial audits, enrollment policies, refund policies, recruitment practices, and accreditation status.
Review and Appeals:
Schools denied eligibility can appeal, except if the denial occurred within six months of reapplication.
2. Lending Programs (Chapter 268-11)
Two primary lending programs are governed under GSFC:
a. Lender of Last Resort (LLR) Program
Objective:
Ensures students at eligible Georgia schools can access subsidized federal Stafford loans when other lenders are unavailable.
Eligibility for Borrowers:
Must have applied through all other lenders first.
Must have acceptable credit history or meet credit standards set by the program.
Must complete mandatory loan counseling and provide references.
Loan Types:
Subsidized Stafford loans only (no PLUS or SLS loans).
Loan Processing:
Applications are processed on a first-come, first-served basis with strict deadlines.
Loans may be denied for incomplete applications, poor credit, or default history.
School Eligibility:
Schools must be eligible under federal guidelines and approved by the GSFC for participation in the LLR program.
b. Assured Access Lending Program
Purpose:
Allows eligible schools to participate in loan programs where GSFC acts as the lender with loans guaranteed by the Georgia Higher Education Assistance Corporation (GHEAC).
School Requirements:
Must be Georgia-based.
Have a minimum of three years’ participation in federal Title IV programs.
Must maintain default rates below 20% for both federal and state-guaranteed loans.
Subject to periodic reviews (at least twice yearly).
Loan Types Covered:
Stafford loans (both subsidized and unsubsidized), PLUS loans, and SLS loans.
Termination:
Schools can be removed from the program for poor default rates, consumer complaints, or failure to meet program standards.
Schools removed from Assured Access may qualify for the LLR program.
3. General Provisions
Oversight and Monitoring:
The GSFC regularly monitors participating schools’ compliance with rules and financial health.
Consumer Protection:
The rules ensure students receive necessary information and protections regarding loans, including disclosures and counseling.
Enforcement:
GSFC has the authority to deny or terminate eligibility, suspend participation, and enforce compliance with program requirements.
Summary
| Area | Highlights |
|---|---|
| School Eligibility | Accreditation, financial responsibility, default rate limits, documentation requirements |
| Lender of Last Resort Program | Provides loans when other lenders refuse, limited loan types, strict borrower criteria |
| Assured Access Lending Program | Broader loan types, requires stable default rates, periodic review, eligibility criteria |
| Enforcement & Compliance | Monitoring, termination, and consumer protection |
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