Rules for Denial or Suspension of Licenses

Table of Contents

1. Definitions
2. Scope of These Rules
3. The Select Cycle
4. The Hearing
5. Request to Licensing Entity to Deny or Suspend License(s)
6. Request to Licensing Entity to Release License(s)
7. Interagency Agreements

I. Definitions

"Applicant" means any person applying for issuance or renewal of a license.

"Borrower" means an individual who in accordance with Georgia Higher Education Assistance Corporation's (GHEAC) records has an outstanding Federal Family Educational Loan guaranteed by GHEAC.

"Certified List" means a state-wide list of persons who are in default and not in satisfactory repayment status on a student loan guaranteed by GHEAC, or a state-wide list of persons provided by the licensing entity who may have defaulted student loans.

"Default" means default as defined by federal law under the Higher Education Act of 1995, as amended.

"Grace period" means an additional 10-day period of time to allow for mailing and processing.

"License" means a certificate, permit, registration or any authorization issued by any licensing entity that allows a person to engage in a profession, business or occupation.

"Licensee" means an individual who in accordance with the licensing entities' records holds a license.

"Licensing entity" means any state agency, department, or board of Georgia which issues or renews any license, certificate, permit, or registration to authorize a person to engage in a profession or occupation.

"Stay" means the suspension of all actions in regards to the denial or suspension of the licensee's or applicant's professional license until the decision of the Administrative Law Judge or subsequent judicial review has been rendered.

"Satisfactory repayment status" means the borrower has agreed to repay the defaulted loan to GHEAC and has made payment in the prior 60 days plus a grace period, except payments offset from funds due the borrower from the Georgia Lottery, the U.S. Treasury and the Georgia Department of Revenue are excluded from this determination.

"Select Cycle" means a nine-month period of time during which a borrower who has been sent a 'Notice of Intent' will be re-screened for non-compliance for satisfactory repayment status for inclusion in a new cycle.

II. Scope of These Rules

These rules govern all procedures that will be used to identify, notify and provide opportunity for administrative and judicial review and to provide for notice of release in accordance with the authority provided to the Georgia Higher Education Assistance Corporation (GHEAC) by Code Section 20-3-295 authorizing GHEAC to request licensing entities to deny or suspend licenses for failure to repay a student loan. As required by this Code section, these procedures are substantially similar to those implemented to comply with Code Section 19-11-9.3 (Child Support Enforcement).

III. The Select Cycle

1. Monthly, GHEAC will identify borrowers who are not in satisfactory repayment status on their defaulted student loans. GHEAC will receive or provide certified lists of such borrowers from the applicable licensing entity.

2. Upon receipt of the certified lists, a process of matching will occur. Borrowers who at the time of the match are still not in satisfactory repayment status will be identified by GHEAC and will be sent a 'Notice of Intent'. One 'Notice of Intent' will be sent regardless of the number of potential licenses that may be affected. The 'Notice of Intent' provides the following information:

   1. Warns: "YOUR LICENSE(S) MAY BE DENIED OR SUSPENDED";

   2. Provides 20 days from the date of the letter to contact GHEAC at the telephone number provided and to enter satisfactory repayment status;

   3. Advises of the right to make a written request to GHEAC at a specified address for a hearing by the Office of State Administrative Hearings (OSAH);

   4. Lists the borrower's Rights and Responsibilities at the hearing including the basis on which the proposed action may be disputed by the licensee or applicant on the following issues:

      1. Whether there is an outstanding guaranteed educational loan;
      2. The licensee or the applicant is not the borrower named in the loan;
      3. The borrower is or is not in default;
      4. The borrower has entered satisfactory repayment status;
      5. The loan obligation is not enforceable;
      6. The loan has been restructured or the loan has been discharged under hardship provisions under the Federal Bankruptcy Code, or meets federal requirements for forgiveness due to closed school or false certification.

IV. The Hearing

1. For borrowers who make a written request for a hearing within 20 days of the 'Notice of Intent' date plus grace period, GHEAC will stay all actions, pending the hearing and subsequent judicial review if applicable.

2. GHEAC will file and submit all required documents with the Office of State Administrative Hearings pursuant to Article 2 of Chapter 13 of Title 50 and in accordance with the Rules of the Office of State Administrative Hearings, Chapter 616-1-2, Procedures for Administrative Hearings Before OSAH Administrative Law Judges so that the hearing can be conducted within 45 days of the licensee's or applicant's request for the hearing. One hearing per select cycle will be provided to the licensee or applicant regardless of the number of licenses affected, and the decision of the Administrative Law Judge will be applicable to all affected licenses or applications.

3. All hearings will be held by the Office of State Administrative Hearing pursuant to Article 2 of Chapter 13 of Title 50 and in accordance with the Rules of the Office of State Administrative Hearings, Chapter 616-1-2, Procedures for Administrative Hearings Before OSAH Administrative Law Judges. The written decision of the Administrative Law Judge, upon its issuance, shall be deemed the final decision of GHEAC. No further action shall be required by GHEAC and there shall be no period of review after the issuance of the Administrative Law Judge's decision.

4. The decision at the hearing shall be subject to appeal and judicial review pursuant to Article 2 of Chapter 13 of Title 50 but only as to those issues referred to in the 'Notice of Intent' and which appear in III. 2.d. above.

5. If the decision of the Administrative Law Judge finds that the issues raised by the borrower are without merit and/or orders no release due to a payment plan being entered, the stay will be lifted and each matched licensing entity will be sent a 'Notice of Non-Compliance' which requests that the agency deny or suspend the license issued by the agency.

6. If the decision of the Administrative Law Judge is one in which the borrower is released due to a payment plan, or a determination that the borrower was unable to comply or would not willfully be out of compliance, or an error, the borrower will be released in the current select cycle.

7. Borrowers who are released in a select cycle will be re-screened for satisfactory repayment status on the ninth month, measured from the initial 'Notice of Intent' date of the select cycle from which the borrower is released for inclusion in a future select cycle.

8. If the Administrative Law Judge finds that the loan is unenforceable, should GHEAC not seek further judicial review and prevail in that review, the borrower will either remain in the stay or be permanently removed from the current select cycle as well as future select cycles.

V. Request to Licensing Entity to Deny or Suspend License(s)

For borrowers who neither make a written request for a hearing or enter satisfactory repayment status within 20 days of the 'Notice of Intent' date plus grace period, GHEAC will send each licensing entity for whom it matched the defaulted borrower a 'Notice of Non-Compliance' which requests that the agency deny or suspend the license issued or pending issuance by the licensing entity.

VI. Request to Licensing Entity to Release License(s)

For borrowers who after the Notice of Non-Compliance has been sent, are later determined to be in satisfactory repayment status, GHEAC will send a 'Notice of Compliance and Request for Release' to each licensing entity that was sent the 'Notice of Non-Compliance'. A copy of the 'Notice of Compliance and Request for Release' sent to each licensing entity is also sent to the borrower. The borrower will be re-screened for satisfactory repayment status on the ninth month from the initial 'Notice of Intent' date of the select cycle for inclusion in a future select cycle.

VII. Interagency Agreements

As may be necessary to implement this Code Section 20-3-295, GHEAC may enter into interagency agreements with state agencies that have responsibility for administration of licensing entities. Such agreements may also include reimbursement for costs incurred by the agencies to implement this Code section which are allowable under federal law and regulation.