Section 121.51. Refund of State higher education grants

(a) Whenever a recipient withdraws, is expelled, is suspended, or otherwise fails to successfully complete a term, refund of any payment on the recipient’s State higher education grant shall be made to the Agency in accordance with the normal refund procedure of the institution.

(b) Unless otherwise directed by the Agency, all overpayments and refunds of State higher education grants shall be returned to the Agency by the institution within 30 days of the receipt of notice from the Agency, or determination by the institution, that such repayment is due, whichever occurs first.

(c) An institution that fails to return overpayments and refunds in accordance with the provisions of subsection (b) shall be subject to a reasonable interest charge calculated on the amount of the overpayment or refund. The charge shall be based on the 90-day Treasury Bill rate as of June 1 of the academic year plus 3.0% or as otherwise set by the Agency to ensure that institutions do not realize a financial benefit in retaining refunds.

The provisions of this § 121.51 adopted February 27, 1969; amended August 22, 1975, effective August 23, 1975, 5 Pa.B. 2189; amended October 28, 1977, effective October 29, 1977, 7 Pa.B. 3195; amended October 16, 1987, effective October 17, 1987, 17 Pa.B. 4120. Immediately preceding text appears at serial page (98951).

Notation

Authority

The provisions of this § 121.51 amended under section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. § 5104); and section 1 of the act of January 25, 1966 (P. L. 1546, No. 541) (24 P. S. § 5151).

Cross References

This section cited in 22 Pa. Code § 121.151 (relating to application of existing Agency regulations).