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Definition of Certain Terms.   

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(a) Act. Title IV Higher Education Act of 1965, as amended, 20 U.S.C. 1070 ff, and 42 U.S.C. 2751-2756(b).

(b) Action. Any proceeding or notification which limits, suspends or terminates the participation of an institution in the CELP, including those taken without the need of conforming to the procedures of this subpart such as a limitation, suspension, termination or other similar action taken as a result of a violation of a Consent Agreement or termination as provided in Section 30300.

(c) Applicable Laws. Applicable laws include, but are not limited to: The Higher Education Act of 1965, as amended; Section 69760-69779 of the California Education Code; California Fair Debt Collection Practices Act (California Civil Code, Section 1788 ff); Truth in Lending Act (15 U.S.C. 1602 ff).

(d) Binding Arbitration. The presentation of issues to a disinterested person chosen by the parties to hear their contention and render a judgment which the institution and the California Student Aid Commission agree to honor.

(e) California Educational Loan Programs (CELP), California Guaranteed Student Loan Program and California Loans to Assist Students.

(f) CELP Official. An official of the CELP who has been delegated by the Director, California Student Aid Commission, the responsibility for initiating and pursuing action under this subpart.

(g) Consent Agreement. A voluntary agreement reached between the institution and the CELP Official which fully or partially settles the dispute(s) between the parties.

(h) Delivery. The release of CELP check to a borrower.

(i) Funds. Any money (including checks, drafts, or other instruments), any commitment to provide money, or any commitment of insurance which has been (or may be) provided under the CELP to a borrower or an institution.

(j) Hearing. The orderly presentation of arguments and evidence before a Hearing Officer.

(k) Hearing Officer. An impartial person, appointed by the Director, California Student Aid Commission, with no prior involvement with the facts giving rise to action under this subpart, who is either;

(1) an attorney who has been admitted to the practice of law in California for at least five (5) years preceding his appointment and possesses any additional qualifications established by the California State Personnel Board for the particular class involved;

(2) a person who is an arbitrator qualified by the American Arbitration Association; or

(3) any other person who meets the qualifications (other than merely testing) for the position of Administrative Law Judge for the Federal Government.

(l) Institution. An institution of higher education as defined in 20 U.S.C. 1085(b), a vocational school as defined in 20 U.S.C. 1085(c), and a lender as defined in 34 C.F.R. 682.200 and 683.10.

(m) Limitation. Imposition of conditions including remedies for past violations by the CELP Official or Hearing Officer which an institution must meet in order to continue to participate in the CELP.

(n) Notice. Written information which is intended to advise the person responsible for the administration, in a participating institution, of the CELP of a proposed action by the California Student Aid Commission in which the institution's interests are involved.

(o) Reinstatement. Allows an institution, after termination of its eligibility, to participate again in the CELP upon meeting specific conditions.

(p) Suspension. The removal of an institution's eligibility to participate in the CELP for a specified period of time or until the institution meets certain requirements.

(q) Termination. The removal of an institution's eligibility in the CELP for an indefinite period of time, but not less than 24 months.

(r) Title IV. Title IV of the Higher Education Act of 1965, as amended.

Authority cited:

Education Code 69763

Reference:

United States Code, Title 20, Section 1078(b) (2) 1078-2(a)

Code of Federal Regulations, Title 34, Section 682.401(c)(2)(ii), 683.31(c)(a)(ii);

Education Code 69763