Chapter 122-5 Supplemental Education Loans

The following definitions shall apply:

(A) "Administration agreement" means the agreement or agreements entered into by the issuing authority, the director of development, and any designated administrator, pursuant to Chapter 3366. of the Revised Code, to implement the secondary market education loan program as amended or supplemented from time to time.

(B) "Costs of attendance" means all costs of a student incurred in connection with a program of study at an eligible institution, as determined by the institution, including tuition; instructional fees; room and board; books, computers, and supplies; and other related fees, charges, and expenses.

(C) "Designated administrator" means, with respect to all obligations issued prior to September 1, 1999, and to all non-federal education loans, the nonprofit corporation designated on June 8, 1983, under division (D) of section 3351.07 of the Revised Code to operate exclusively for charitable and educational purposes by expanding access to higher education financing programs for students and families in need of student financial aid. For all other purposes, "designated administrator" means the Ohio corporation that is a subsidiary of the nonprofit corporation designated under division (D) of section 3351.07 of the Revised Code and that has agreed to enter into an administration agreement with the issuing authority and the director of development, or any other person that enters into an administration agreement with the issuing authority and the director of development.

(D) "Education loan" means a loan made by an eligible lender to or for the benefit of a student in accordance with this chapter, on prescribed application and note forms and serviced by a selected servicer, for the purpose of financing part or all of the student's costs of attendance.

(E) "Eligible borrower" an individual described in paragraph (E)(1), (E)(2) or (E)(3) of this rule:

(1) Individuals who are residents of the state, and who are attending and are in good standing in, or who have been accepted for attendance at, any eligible institution located in this state or elsewhere, on a part-time or full-time basis, to pursue an associate, baccalaureate, or advanced degree or a nursing diploma;

(2) Individuals who reside outside the state and who have been accepted for attendance at, any eligible institution located good standing in, any eligible institution located in this state, on a part-time or full-time basis, to pursue an associate, baccalaureate, or advanced degree or a nursing diploma; or

(3) Individuals who are parents or legal guardians of individuals meeting the requirements set forth in paragraph (E)(1) or (E)(2) of this rule, or other persons, including employers of such individuals, borrowing under an education loan for the benefit of such individuals in order to assist them in paying costs of attendance.

(4) Pursuing an associate, baccalaureate, or advanced degree or a nursing diploma for purposes of paragraph (E)(1) or (E)(2) of this rule includes attending classes as part of a program that awards a certificate if the certificate is related to an associate, baccalaureate, or advanced degree or a nursing diploma previously obtained.

(F)(1) "Eligible institution" means an institution described in any of paragraph (F)(1)(a), (F)(1)(b), or (F)(1)(c) of this rule that satisfies all of the requirements set forth in paragraphs (F)(2), (F)(3), and (F)(4) of this rule.

(a) The institution is a state-assisted post-secondary educational institution within this state.

(b) The institution is a nonprofit institution within this state having a certificate of authorization from the Ohio board of regents pursuant to Chapter 1713. of the Revised Code.

(c) The institution is a post-secondary educational institution similar to one described in paragraph (F)(1)(a) or (F)(1)(b) of this rule that is located outside this state and that is similarly approved by the appropriate agency of that state.

(2) The institution is accredited by the appropriate regional and, when appropriate, professional accrediting association within whose jurisdiction it falls.

(3) The institution satisfies the eligibility requirements for participation in the federal family education loan program authorized under Title IV, Part B, of the "Higher Education Act of 1965," 20 U.S.C. 1071 et seq., as amended, as long as that program remains in existence. For purposes of determining whether an institution satisfies the eligibility requirements, the institution is deemed eligible so long as it meets the substantive standards under such Title IV, without regard to whether it complies with the notification and certification requirements of the federal family education loan program and participates in such program.

(4) The eligibility of the institution has not been withdrawn or limited. The eligibility of an institution may be withdrawn or limited if, as determined by the designated administrator:

(a) The percentage of outstanding education loans made to students of the institution under this program which are in default beyond grace periods exceeds a maximum permitted default percentage, as determined by the designated administrator; or

(b) The designated administrator determines, in its reasonable judgment, that the continued eligibility of the institution would adversely affect the efficient and effective operation of the program.

(G) "Eligible lender" means, subject to the limitations set forth in the administration agreement, with respect to lenders making non-federal education loans, a bank, national banking association, savings bank, savings and loan association, or credit union having an office in this state that satisfies the criteria for eligible lenders established pursuant to the policy guidelines. With respect to lenders making federal education loans, "eligible lender" means any person that is permitted to make loans under the federal family education loan program authorized under Title IV, Part B, of the "Higher Education Act of 1965," 20 U.S.C. 1071 et seq., as amended, that has an office in this state and satisfies the criteria for eligible lenders established pursuant to the policy guidelines.

(H) "Federal education loan" means an education loan that is originated in compliance with the federal family education loan program authorized under Title IV, Part B, of the "Higher Education Act of 1965," 20 U.S.C. 1071 et seq., as amended.

(I) "Issuing authority" means the treasurer of state, or the officer who by law performs the functions of the treasurer of state.

(J) "Non-federal education loan" means any education loan that is not a federal education loan.

(K) "Obligations" means the bonds, notes, or securities of this state issued by the issuing authority pursuant to Chapter 3366. of the Revised Code.

(L) "Person" means any individual, corporation, business trust, estate, trust, partnership, or association, any federal, state, interstate, regional, or local governmental agency, any subdivision of the state or any combination of these.

(M) "Policy guidelines" means the rules adopted pursuant to division (A) at section 3366.03 of the Revised Code.

(N) "Resident" means any student who would qualify as a resident of this state for state subsidy and tuition surcharge purposes under rules adopted by the Ohio board of regents under section 3333.31 of the Revised Code.

(O) "Servicer" means any loan servicer selected pursuant to the administration agreement to administer education loans.

(P) "Student" means an individual described in paragraph (E)(1) or (E)(2) of this rule who meets the requirements set forth in paragraphs (P)(1) or (P)(2), and (P)(3) of this rule. "Student" includes dependent and independent undergraduate, graduate, and professional students.

(1) To qualify as a full-time student, the student must maintain an academic workload sufficient to secure the degree or diploma toward which the student is working in no more than the number of semesters, terms, quarters, or trimesters required by that institution for all students enrolled in that student's particular program of study.

(2) To qualify as a part-time student, the student must meet the requirements set forth in the administration agreement.

(3) To be a student in "good standing" the student must satisfy the standards set forth in the administration agreement, and any education loan obtained by or for the benefit of the student must not be currently in default.