Section 20.16.225. Award disbursement and refund.

	(a)  Subject to appropriation, the commission staff shall distribute scholarship money to eligible institutions on behalf of award recipients.  
	(b)  The commission staff shall distribute scholarship money to eligible institutions on or after July 15 for programs that start August 1 or later in that academic year.  
	(c)  An eligible institution may not disburse a scholarship award under a power of attorney assignment by the student unless the student   
		(1) has already successfully completed the program of study for which the scholarship was awarded; or  
		(2) is unavailable because the student is in an extern program of the school.  
	(d)  An eligible institution is responsible for maintaining documentation that the school verified the identity of the student before disbursing any scholarship money to the student.  
	(e)  An eligible institution that has courses of study for which tuition is charged on a pay-as-you-go basis and that holds unearned tuition money on behalf of a student shall place scholarship disbursements in a non-interest-bearing trust account containing only scholarship money. The scholarship money may be withdrawn only as it is earned by the institution as a result of the student's enrollment and attendance under the terms of the institution's enrollment agreement. If a student fails to attend, or otherwise withdraws from the institution, the balance of the student's scholarship money remaining on account with the institution shall be returned to the commission no later than 30 days after the student stopped attending the institution.  
	(f)  An eligible institution may not disburse scholarship awards to a student who is on an approved leave of absence unless the student has already completed the program period for which scholarship money was awarded.  
	(g)  The commission staff may make scholarship award disbursements electronically or in another format that provides scholarship proceeds directly to the institution rather than by warrants payable to individual students.  
	(h)  Scholarship award payments to institutions will be made in at least two disbursements, with the first payment made at the start of the first term of attendance and the second payment made at the start of the second term of attendance, or the equivalent. For non-term programs, the second disbursement will be made at the earlier of 60 days after the program start date or the midpoint of the program. Institutions must certify the student's continuing eligibility in order for the commission to make the second disbursement in any academic year.  
	(i)  Before disbursing scholarship money to the student, an eligible institution shall certify to the commission that the institution's records indicate that, at the time of disbursement,  
		(1) the student is eligible for disbursement under 20 AAC 16.210;  
		(2) the student is a resident of this state; and  
		(3) the institution is not disbursing money in excess of the student's costs of attendance, as calculated according to  
			(A) the institution's published budget for the number and type of credit hours, or career and technical school program, in which the student is enrolled, or  
			(B) the student's documented actual costs of attendance for the number and type of credit hours, or career and technical school program, in which the student is enrolled.  
	(j)  For a student enrolled in more than one institution, the degree-granting institution shall make the certifications required in this section.  
	(k)  If a scholarship recipient becomes eligible for a refund from the institution in excess of $50, or it is determined that the student is overawarded in excess of $50, the institution shall refund or return scholarship money to the commission no later than 30 days after the date the overaward was noted or the student became eligible for a refund.  
	(l)  No later than 30 days after receipt of scholarship money, an institution shall return to the commission any of that money not credited to the student's account or otherwise disbursed to the student.  
	(m)  An ineligible award recipient is subject to AS 14.43.920.  

Authorities

14.42.030;14.43.810;14.43.825;14.43.830

Notes

Authority

AS 14.42.030 AS 14.43.810 AS 14.43.825 AS 14.43.830

History

Eff. 1/1/2011, Register 196; am 4/4/2013, Register 206