Section 121.4. Denial of eligibility to loan defaulters

(a) A higher education applicant who has defaulted on an educational loan guaranteed or reinsured by the Federal government, the government of any state or institution is ineligible for an award or a disbursement of funds unless the applicant has repaid the loan in whole or in part and, in the judgment of the Agency, did not make the repayment merely to gain grant eligibility or unless the applicant otherwise shows good cause why grant eligibility should be reinstated. This includes programs administered by the United States Department of Education or PHEAA when awards have been converted to loans due to failure to meet eligibility or service requirements and the loan is in default status.

(b) Applicants denied eligibility under this section shall be entitled to review of the denial in accordance with the procedure for review and appeals as provided in § § 121.7 and 121.8 (relating to notice of denial and preliminary review procedures; and applicant and recipient appeals and hearings).

The provisions of this § 121.4 adopted February 27, 1969; amended February 16, 1973, effective February 17, 1973, 3 Pa.B. 325; amended November 23, 1973, effective November 24, 1973, 3 Pa.B. 2719; amended December 27, 1974, effective December 28, 1974, 4 Pa.B. 2699; amended August 22, 1975, effective August 23, 1975, 5 Pa.B. 2189; amended June 19, 1981, effective June 20, 1981, 11 Pa.B. 2116; amended March 26, 1982, effective March 27, 1982, 12 Pa.B. 1043; amended July 31, 2015, effective August 1, 2015, 45 Pa.B. 4163. Immediately preceding text appears at serial pages (268145) to (268146).

Notation

Authority

The provisions of this § 121.4 issued under the act of July 12, 1981 (P. L. 264, No. 89) (24 P. S. § § 5102.1 and 5104(1.2)); amended under section 6(e) of the act of January 25, 1966 (P. L. 1546, No. 541) (24 P. S. § 5156(e)).

Cross References

This section cited in 22 Pa. Code § 121.151 (relating to application of existing Agency regulations); 22 Pa. Code § 121.201 (relating to application of existing Agency regulations); 22 Pa. Code § 121.302 (relating to application of existing Agency regulations); and 22 Pa. Code § 121.401 (relating to application of existing agency regulations).