2014 Kentucky Revised Statutes CHAPTER 164 - STATE UNIVERSITIES AND COLLEGES -- REGIONAL EDUCATION -- ARCHAEOLOGY 164.772 Default in repayment obligation under financial assistance program -- Professional licensing and certification -- Notification.
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164.772 Default in repayment obligation under financial assistance program -Professional licensing and certification -- Notification.
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For purposes of this section, "licensing agency" means an agency, board, or
commission created by the state, including the Kentucky Supreme Court, that
has the power to issue, renew, revoke, or suspend any occupational or
professional certification, license, or registration required to engage in an
occupation, profession, or trade.
The Kentucky Higher Education Assistance Authority shall declare that a
person is in default if he or she is not meeting the repayment obligation under
any financial assistance program in KRS Chapters 164 and 164A administered
by the Kentucky Higher Education Assistance Authority.
A licensing agency may require that an applicant certify that he or she is not
ineligible for an initial or renewed occupational or professional certification,
license, or registration pursuant to subsection (2) of this section.
A licensing agency shall not issue or renew a license of any person who is in
default of the repayment obligation under any financial assistance program in
KRS Chapters 164 and 164A unless the authority has verified that:
(a) The borrower in default has entered a satisfactory repayment agreement
on the defaulted loan;
(b) The financial obligation has been waived for cause or discharged by the
authority; or
(c) The financial obligation has been satisfied or paid in full.
The authority shall notify the licensing agencies of the requirements of this
section and enter into an agreement with the licensing agencies to establish
procedures regarding the exchange of information on persons who have
defaulted on repayment obligations, the form and frequency of exchanging
information on borrowers in default, and notification to the borrowers in default
of the repayment obligation.
A licensing agency or the authority shall notify, in writing, the borrower of a
defaulted loan that failure to repay the obligation may result in the denial of the
issuance of an initial or renewed license, or the suspension or revocation of a
license to practice a profession, occupation, or trade in accordance with the
rules and policies established by the licensing agency. The notice shall provide
time frames in which the borrower shall respond to the notification and enter
into a satisfactory agreement to repay the obligation. If the borrower fails to
enter into a satisfactory agreement, the authority may notify the appropriate
licensing agency that the license of the borrower in default is not subject to
issuance or renewal or may be suspended or revoked in accordance with the
administrative regulations of the licensing agency.
The authority shall promptly notify a licensing agency that a formerly reported
borrower is no longer in default and has achieved satisfactory repayment
status as determined by the authority, repaid the obligation in full, or the
authority has taken other action including waiver of the obligation for cause or
discharging the borrower of the responsibility for repayment. Upon receiving
notice from the authority, the licensing agency may issue an initial or renewed
license or reinstate the certificate, license, or registration in accordance with
administrative regulations adopted by the licensing agency.
Effective:July 15, 2002
History: Created 2002 Ky. Acts ch. 236, sec. 1, effective July 15, 2002.
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