(A) Making of education loans. The form of the loan application to be completed by the eligible borrower, criteria for approval of the education loan application, and the manner for disbursing funds upon the making of the education loan and administering and collecting the education loan will be prescribed by the designated administrator, consistent with the policy guidelines set forth in this chapter and the provisions of the administration agreement. Certain specific provisions governing the making of education loans will be set forth in the administration agreement.
(B) Sale and purchase of education loans.
(1) The designated administrator shall purchase education loans that conform to the policy guidelines and the provisions of the administration agreement provided that proceeds of obligations are available for the purchase of such loans. The designated administrator is not obligated to purchase education loans that do not conform to the policy guidelines and the provisions of the administration agreement. An eligible lender may not decline to sell to the designated administrator any non-federal education loan that has been made by the eligible lender pursuant to Chapter 3366. of the Revised Code.
(2) The purchase by the designated administrator of a non-federal education loan pursuant to Chapter 3366. of the Revised Code may be made during the period after origination of the non-federal education loan but before repayment begins. The purchase by the designated administrator of a federal education loan pursuant to Chapter 3366. of the Revised Code may be made at any time after the origination of the federal education loan.
(3) The designated administrator will purchase the education loan for an amount equal to the face amount of the education loan plus accrued interest, or for a percentage over the face amount of the education loan, as determined pursuant to the administration agreement.
(C) For purposes of this chapter, any designated administrator other than the nonprofit corporation designated under division (D) of section 3351.07 of the Revised Code shall be a person that maintains its principal place of business in the state and that has as its principal business the making, purchasing, holding, or selling of loans made to finance individuals' cost of post-secondary education.
(D) Federal education loans. All federal education loans purchased by the designated administrator pursuant to paragraph (B) of this rule shall include the reduced rate terms available to the borrower as established by the designated administrator pursuant to and in accordance with the administration agreement.
(E) Non-federal education loans.
Pursuant to and in accordance with the administration agreement, the designated administrator shall establish the terms of non-federal education loans made under this program, including applicable loan fees, rates of interest, credit criteria, limits on annual and aggregate education loan amounts, repayment periods, and education loan capacity, within the following guidelines:
(1) Origination fees.
The eligible lender or servicer will collect an origination fee established pursuant to the administration agreement which may include an amount, as determined by the designated administrator, to be remitted to the designated administrator upon origination of the non-federal education loan or at such other time as the designated administrator shall establish. Such origination fee will be deposited into one or more program guarantee funds for the purpose of securing or providing security for repayment of non-federal education loans or obligations.
(2) Loan allocation.
(a) Non-federal education loan capacity may be allocated among the various categories of institutions designated as eligible institutions in this chapter. Such allocation may be made by establishing loan capacity either as a fixed percentage of total non-federal education loans made through the program established pursuant to this chapter, or as a limitation on the number of non-federal education loans or aggregate loan value.
(b) Participation by categories of eligible lenders in the program established pursuant to this chapter may be limited pursuant to the administration agreement, to promote efficiency, continuity, and ease of administration.
(F) Special arrangements.
If the director of development determines that education loans are not being made under the program established pursuant to this chapter in the amount or manner anticipated, the designated administrator, with the consent of the director, may enter into special arrangements with one or more eligible lenders to stimulate the provision of education loans. The designated administrator may agree to pay the selected lender a purchase premium or authorize the selected lender to offer education loans to eligible borrowers on terms other than those otherwise established under the program.
(G) Disposition of federal education loans.
Pursuant to and in accordance with the administration agreement, the designated administrator shall sell any federal education loans that by their terms cease to be entitled to the reduced rate benefit then applicable to federal education loans. Any such sale shall be at a price determined in accordance with the administration agreement and shall be not less than the principal amount of plus accrued interest on the education loans being sold except that education loans that are more than ninety days delinquent or which have been in repayment for more than eighty-four months may be sold at a lower price. The sale price shall be payable either by the delivery by the purchaser of federal education loans that are then entitled to the reduced rate benefit or by the payment of cash or by a combination of federal education loans and cash. Any sale of loans may be made to any person selected by the designated administrator taking into account the price offered and the availability of sufficient reduced rate federal education loans and any sale may be made to the designated administrator or any affiliate of the designated administrator.
(H) Application of program surplus.
Any funds held by the designated administrator or any indenture trustee or other party that are no longer required to be held to pay costs or as security under any indenture shall, at the time specified by the issuing authority with the approval of the director of development, be transferred to the Ohio outstanding scholarship and the Ohio priority needs fellowship programs payment funds in accordance with section 3333.375 of the Revised Code.
(I) General authority of designated administrator.
Pursuant to Chapter 3366. of the Revised Code, the designated administrator has the authority to establish and operate on behalf of the state of Ohio an education loan secondary market program subject to the policy guidelines and the administration agreement. The designated administrator may establish program standards, terms, and conditions within the limits set forth in Chapter 3366. of the Revised Code, this chapter, and the administration agreement, and may take any other action that is necessary or appropriate to carry out the program terms and conditions, to provide for the efficient and effective administration of the program, and to advance the goal of making education assistance available to students, consistent with the provisions of Chapter 3366. of the Revised Code, this chapter, and the administration agreement.