(1) Each postsecondary educational institution that receives state funds for state financial aid and tuition assistance programs shall:(a) Complete and return the annual application for state aid funds in the format and by the date established by the Department of Education.
(b) Maintain complete, accurate, and auditable student records documenting the institution’s administration of state financial aid and tuition assistance funds.
(c) Verify eligibility of enrolled students with the department each academic term.
(d) Report each student’s program of study to the department using the most recent classification of instructional programs taxonomy for the certificate or degree level as developed by the United States Department of Education’s National Center for Education Statistics.
(e) Disburse state financial aid and tuition assistance to eligible students.
(f) Notify students annually regarding the renewal requirements for each state-funded award for which they are eligible.
(g) Complete and return to the department all reports for the administration of state funds in the format and by the date established by the department.
(h) Complete and return to the department all legislatively required reports in the format and by the date established by the department.
(i) Retain required records for the later of 5 years or until such records are audited and any audit exceptions are resolved.
(j) Refund to the department any undisbursed advances within 60 days after the end of the regular registration period each fall and spring term, within 30 days after the end of the summer term, or within 60 days after the date a student’s ineligibility is determined.
(2) The requirements in subsection (1) do not preclude higher standards specified in other sections of this part or the rules of the State Board of Education.
(3) An institution that fails to perform its duties in administering state financial aid or tuition assistance programs must be placed on probation by the department.(a) The department shall provide allocations on a reimbursement basis to a participating institution that fails to timely remit undisbursed funds for the previous academic year.
(b) The department may suspend or revoke an institution’s eligibility to participate in state-funded programs if the institution fails to provide the required audits, fails to resolve audit findings, or fails to timely provide statutorily required reports by established deadlines.
