N.Y. Comp. Codes R. & Regs. tit. 8 § 2004.2

Current through Register Vol. 46, No. 25, June 18, 2024

Section 2004.2 - Possible sanctions

(a) Limitations. A limitation on an institution's or a lender's participation established under this Part may include any of the following:

(1) a limit on the number or total amount of loans which a lender may make;

(2) a limit on the number or percentage of students enrolled in an institution who may receive loans under this Chapter;

(3) a limit on the percentage of an institution's total receipts for tuition and fees which may be derived from loans for a stated period of time; or

(4) such other requirements or conditions as the president, the board or a presiding officer may determine:

(i) are reasonable and appropriate as a direct means of correcting a violation of applicable laws, regulations or agreements;

(ii) have a high probability for successfully correcting such violation or condition; and

(iii) will promote the purposes of the programs provided for in this Chapter.

(b) Reimbursements and refunds. As part of any decision in a limitation, suspension or termination, the president or the presiding officer may also require an institution or lender to take such other corrective action as is reasonable and appropriate to remedy a violation of applicable laws, regulations, agreements or limitations. Such corrective action may include payment to the corporation or to recipients designated by the president or the presiding officer, for:

(1) ineligible interest benefits, special allowances, or other claims paid by the corporation;

(2) discounts, premiums or excess interest paid in violation of law or applicable regulations; or

(3) refunds due to students under provisions of this Chapter.

N.Y. Comp. Codes R. & Regs. Tit. 8 § 2004.2