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Effect of Suspension.   

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A suspension removes an institution's eligibility to participate in the CELP for a period of not longer than sixty (60) days. The suspension may be extended beyond sixty (60) days if the CELP Official and the institution agree to an extension or the CELP Official begins a limitation or termination proceeding; in which case, the suspension shall continue until the completion of the limitation or termination hearing, including the notification period and resolution of an appeal.

A suspension bars any further CELP processing or guarantee of loans to be made to borrowers to cover the cost of attending a suspended school or to be made by a suspended lender or school lender and bars delivery by a suspended school of any CELP checks.

Suspension does not bar disbursement or delivery of loans guaranteed prior to the suspension by a suspended lender or school lender or by a suspended school, unless specifically so provided in the order of suspension.

Authority cited:

Education Code 69763

Reference:

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

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

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

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

Education Code 69763