Section 1710-01-02-.09 - BASIS AND PROCEDURE FOR DISBURSEMENT OF FUND(1) The basis and procedure for disbursement of funds from the Tuition Guaranty Fund shall be as follows:(a)1. In the event an institution participating in the fund goes into bankruptcy, or for any reason closes operation without completing its educational obligation or reimbursing its students, the Board will reimburse to the enrollees or lender valid, in view of the Board, unearned tuitions paid to that institution which are supported by documentable claims. Under conditions acceptable to the Tennessee Higher Education Commission, as described in rule 1540-1-2-.17, other participant institutions may provide satisfactory teachout arrangements for the enrollees in a similar program in lieu of utilization of monies from the Tuition Guaranty Fund. Students who are eligible for the approved teachout option or who have received refunds from other sources shall not be eligible for reimbursement from the fund to the extent of those refunds. Further, whenever any institution is required by these rules to hold an institutional surety bond for the purposes of student indemnification, claims will be satisfied to the extent possible through calling of the bond funds prior to the use of monies from the Fund.2. For the purposes of section 1710-1-2-.09 of these rules, the term "valid .... unearned tuition paid," "tuition" or "valid claims of students" as expressed in TCA. § 49-7-2018(fi, consistent with related regulations concerning student financial assistance, shall be defined as including tuition, registration, general graduation, activity, or other fees that are required to be paid by all students attending a particular institution.. Monies supporting tangible goods such as books and equipment purchase costs shall not be reimbursable by the Fund. Monies supporting program specific costs shall not be reimbursable by the Fund. Monies for expenses such as housing, meals, clothing and transportation, not paid directly to and retained by the institution shall not be reimbursable.(b) A claim for reimbursement of unearned tuition shall be made against the Fund within two years of the cessation of operation and forwarded to the licensure staff of the Tennessee Higher Education Commission. Claims must be accompanied by such documents as receipts or cancelled checks, or executed enrollment agreements which document tuition payment. Whenever appropriate documentation is not provided and the Board determines that availability of documentation is beyond the control of the claimant, the Board has the authority to determine the validity and appropriate monetary level of any claim. The Board will act on the claim in a timely manner and will provide to the claimant a written explanation for any action taken, or any basis for delay of action, by the Board. Whenever a claim is based on borrowed tuition, the Board may make any claim payment payable to the lender and/or claimant for that portion of the claim which is unpaid as of the date of action by the Board. There shall be no right for reimbursement of unearned tuition except through the Fund. In the event the Fund is depleted, any unpaid claims for reimbursement properly filed pursuant to this rule shall be retained and acted upon by the Board at such time as the Fund balance is restored.Tenn. Comp. R. & Regs. 1710-01-02-.09
Original rule filed March 13, 1990; effective June 26, 1990. Amendment filed January 14, 1993; effective April 30, 1993. Amendment filed May 10, 1993; effective August 29, 1993. Amendment filed August 5, 2002; effective December 27, 2002. Amendment filed August 9, 2007; effective December 28, 2007.Authority: T.C.A. §49- 7-2018, Public Chapter 766, Acts of 2006.