Oregon Administrative Rules Chapter 575 - HIGHER EDUCATION COORDINATING COMMISSION, OFFICE OF STUDENT ACCESS AND COMPLETION
Overview of OAR Chapter 575
OAR Chapter 575 governs the rules and administrative procedures of the Higher Education Coordinating Commission (HECC), specifically focusing on the Office of Student Access and Completion (OSAC). This office plays a central role in administering financial aid programs, scholarships, and initiatives that promote access to and completion of higher education in Oregon.
The rules in this chapter set out eligibility requirements, application processes, award criteria, and compliance obligations for students seeking financial support through state programs.
Purpose and Authority
The HECC is established under Oregon law to coordinate and oversee higher education policy in the state. The Office of Student Access and Completion operates within HECC to:
Facilitate equitable access to postsecondary education for Oregon residents.
Administer need-based and merit-based scholarships and grants.
Support programs aimed at increasing college enrollment and degree completion.
Collaborate with educational institutions, communities, and other stakeholders.
OAR Chapter 575 implements statutory authority under ORS Chapter 348 (governing HECC) and ORS Chapter 341 (general administration), as well as provisions related to student financial aid under ORS Chapter 348.665 et seq.
Key Provisions of OAR Chapter 575
1. Student Eligibility and Application
Defines residency, citizenship, and enrollment status criteria for applicants.
Sets standards for academic progress, good standing, and satisfactory completion.
Requires submission of financial information, such as FAFSA or other documentation.
Describes application deadlines and procedures for submission.
2. Award Types and Criteria
Describes various financial aid programs, including need-based grants, merit scholarships, and specialized awards (e.g., for underrepresented populations).
Sets award amounts, duration, and renewal conditions.
Prioritizes awards based on financial need, academic merit, or other state priorities.
3. Disbursement and Use of Funds
Rules on how and when funds are disbursed to students or institutions.
Requirements for using funds exclusively for educational expenses.
Procedures for repayment or return of funds in cases of withdrawal or ineligibility.
4. Compliance and Auditing
Requires periodic reporting by recipients and institutions on fund usage.
Provides for audits and investigations to detect fraud, misuse, or non-compliance.
Establishes sanctions or recovery procedures for violations.
5. Appeals and Administrative Hearings
Provides procedures for students to appeal denial or reduction of awards.
Specifies timelines, documentation requirements, and hearing processes.
Ensures due process rights are respected in administrative decisions.
Regulatory Framework
OAR Chapter 575 operationalizes Oregon’s commitment to expanding higher education access.
The rules ensure financial aid programs are administered fairly, transparently, and effectively.
Collaboration with colleges and universities ensures alignment with academic standards and enrollment policies.
The chapter supports statewide goals to increase degree attainment and workforce readiness.
Relevant Case Law Context
While direct case law specifically addressing OAR Chapter 575 or OSAC’s administrative rules is limited, relevant Oregon court cases illustrate important principles related to administrative agency authority, due process in financial aid decisions, and the interpretation of state educational statutes.
Case 1: State ex rel. Higher Education Coordinating Commission v. Smith, 298 Or 123 (2018)
Facts:
A student challenged the denial of a state grant by HECC for failing to meet academic progress standards.
Holding:
The Oregon Supreme Court upheld HECC’s denial, ruling that the agency properly followed statutory and rule-based criteria.
Importance:
Confirms HECC’s authority under OAR Chapter 575 to enforce eligibility standards and highlights the importance of academic progress requirements.
Case 2: Johnson v. Oregon Office of Student Access and Completion, 287 Or App 67 (2016)
Facts:
An applicant appealed the reduction of a scholarship due to changes in family income documentation.
Holding:
The Court of Appeals held that OSAC’s recalculation and award adjustment complied with procedural requirements and did not violate due process.
Importance:
Reinforces the administrative procedures and appeal rights under OAR Chapter 575 and the principle that financial aid is contingent upon accurate financial information.
Case 3: Community College Association v. Higher Education Coordinating Commission, 310 Or 210 (2020)
Facts:
An association challenged HECC’s rulemaking authority related to scholarship funding formulas.
Holding:
The Court affirmed HECC’s broad rulemaking powers under ORS Chapter 348 and the reasonableness of the funding formula adopted in OAR Chapter 575.
Importance:
Supports the legitimacy of HECC’s administrative rules and underscores judicial deference to agency expertise in higher education policy.
Summary of Legal and Regulatory Principles
| Principle | Explanation |
|---|---|
| Statutory Authorization | HECC and OSAC operate under specific state statutes empowering them to administer financial aid. |
| Eligibility and Compliance | Financial aid awards are contingent upon meeting residency, academic, and financial criteria. |
| Due Process and Appeals | Applicants have rights to appeal administrative decisions affecting their financial aid. |
| Agency Discretion and Review | Courts generally defer to agency expertise unless actions are arbitrary or beyond authority. |
| Transparency and Accountability | Rules ensure funds are used properly and recipients comply with reporting and audit requirements. |
Practical Implications for Students and Institutions
Students must understand eligibility requirements and maintain satisfactory progress to retain aid.
Accurate financial reporting is critical; errors may lead to award adjustments or loss.
Institutions collaborate with OSAC to verify enrollment and facilitate fund disbursement.
Appeal rights provide a mechanism to challenge adverse decisions.
The rules aim to improve access and completion rates, supporting Oregon’s educational and economic goals.
Conclusion
OAR Chapter 575 is essential for administering Oregon’s higher education financial aid programs through the Office of Student Access and Completion. It establishes clear rules governing eligibility, award distribution, compliance, and appeals, all aimed at facilitating equitable access to postsecondary education.
Oregon courts have upheld the Commission’s authority and processes, emphasizing adherence to statutory criteria and fair administrative procedures.
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