2011 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.
KY Rev Stat § 164.772 (1996 through Reg Sess) What's This?
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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