(1) Each institution of higher education as defined
in §22.197 of this title (relating to Definitions) is eligible
to participate in the program.
(2) No institution may, on the grounds of race, color,
national origin, gender, religion, age, or disability exclude an individual
from participation in, or deny the benefits of, the program described
in this subchapter.
(3) Each eligible institution must follow the Civil
Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination
(1) Agreement. Each eligible institution must enter
into an agreement with the Board, the terms of which shall be prescribed
by the Commissioner.
(2) Approval Deadline. An institution must be approved
by April 1 in order for qualified students enrolled in that institution
to be eligible to receive grants in the following fiscal year.
(1) Probation Notice. If the institution is placed
on probation by its accrediting agency, it must immediately advise
the Board and grant recipients of this condition and maintain evidence
in each student's file to demonstrate that the student was so informed.
(2) Disbursements to Students.
(A) Documentation. The institution must maintain records
to prove the receipt of program funds by the student or the crediting
of such funds to the student's school account.
(B) Procedures in Case of Illegal Disbursements. If
the Commissioner has reason for concern that an institution has disbursed
funds for unauthorized purposes, Board staff will notify the Program
Officer and financial aid officer and request a refund of the improper
disbursement or proof that the awards were, indeed, made in keeping
with program requirements. If this process does not lead to a resolution
to the satisfaction of both parties, the Board will offer an opportunity
for a hearing pursuant to the procedures outlined in Chapter 1 of
this title (relating to Agency Administration). Thereafter, if the
Board determines that funds have been improperly disbursed, the institution
shall become primarily responsible for restoring the funds to the
Board. No further disbursements of grants or scholarships shall be
permitted to students at that institution until the funds have been
(3) Reporting and Refunds. All institutions must meet
Board reporting requirements in a timely fashion. Such reporting requirements
include reports of eligible students (new and continuing) as well
as program year-end reports and the Financial Aid Database Report.
(4) Program Reviews. If selected for such by the Board,
participating institutions must submit to program reviews of activities
related to the program.