| (a) A penalty shall be paid on any refund not completed
in a timely manner as required by the Act. The penalty assessment
shall begin on the first day following the expiration of the statutorily
defined refund period and end on the day preceding the date the refund
is completed.
(b) Any penalty assessed on a school's late payment
of student refunds shall be disbursed in the following order of priority:
(1) to the student's account at a lending institution
for the balance of principal and interest on the student loan;
(2) to the student for tuition and fees paid directly
by the student;
(3) to a Board for tuition and fees paid by the Board;
and
(4) to the tuition trust account for any remaining
balance of assessed penalty.
(c) If the Agency determines that the method used by
the school to calculate refunds is in error or the school does not
routinely pay refunds within the time required by the Act, the school
shall submit an agreed-upon procedures engagement conducted by an
independent CPA. The CPA shall examine all files for students who
did not complete a course of study, to determine compliance with the
most restrictive of:
(1) the Act;
(2) this chapter; or
(3) the school catalog current on the date of the student's
enrollment.
(d) An opinion letter shall accompany a schedule of
student refunds due, disclosing the following information for the
four years prior to the date of the Agency's request:
(1) student information, including name, address, and
Social Security number;
(2) pertinent dates, including recorded last date of
attendance, date of termination, and, if necessary, recalculated last
date of attendance;
(3) recorded refund information, including amount of
refund with principal, penalty, and any balance due stated separately;
payee; date and check number of payment if payment has been made;
any of the same categories of information resulting from recalculations;
and
(4) other information requested by the Agency to demonstrate
compliance.
|
| Source Note: The provisions of this §807.264 adopted to be effective August 28, 2006, 31 TexReg 6803; amended to be effective January 23, 2012, 37 TexReg 200; amended to be effective November 14, 2016, 41 TexReg 9020 |
