DEPARTMENT OF TREASURY
 
HIGHER EDUCATION ASSISTANCE AUTHORITY
 
TUITION GRANTS
 
Filed with the secretary of state on
 
These rules take effect immediately upon filing with the secretary of state unless adopted under section 33, 44, or 45a(6) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a.  Rules adopted under these sections become effective 7 days after filing with the secretary of state.
 
(By authority conferred on the higher education  assistance  authority  department of treasury by section 6 of Act No. 313 of the Public Acts of  19661966 PA 313, as  amended,  beingS MCL 390.996, and Executive Reorganization Order No. 2010-2, MCL 12.194 of the Michigan Compiled Laws)
 
R 390.831, R 390.832, R 390.833, R 390.834, R 390.835, R 390.838, R 390.839, R 390.840, R 390.841, R 390.843, R 390.844, R 390.845, R 390.846, R 390.847, R 390.848, and R 390.849 of the Michigan Administrative Code are amended, as follows:
 
 
R  390.831   Definitions.
  Rule 1. As used in these rules:
  (a) "Act" means 1966 PA 313, Act No. 313 of the Public  Acts  of  1966as  amended, being S MCL 390.991 to 390.997a. et seq. of the Michigan Compiled Laws.
  (b)  "Authority"  means  the  Michigan   higher   education   assistance authority.
  (c)(b) "Award" means a tuition grant award.
  (d)(c)"Default"  means  failure  to  comply  with  the  terms  of  a  loan guaranteed by the authority department so that the authority department finds  it  necessary  to reimburse the original lending institution for the balance of the loan.
  (d) “Department” means the Michigan department of treasury.
  (e) "Full-time" means a student enrolled for 12 or more semester  credit hours or equivalent in trimester or quarter hours or the equivalent of  24 semester hours or 36 quarter hours  per  academic  year  for  institutions using credit hours to measure progress, but not using semester, trimester, or quarter hours.
  (f) "Independent, nonprofit college or university" means a Michigan independent college or university eligible for listing in the "Directory of Michigan Institutions of Higher Education," published by the Michigan department of education.
  (g) "Parent" means the mother, father, mother and father, or adoptive parents.
  (h) "Part-time" means a student enrolled for not less than 6, but not more than 11, semester credit hours, trimester, or equivalent in quarter hours or at least 1/2 the credit defined as full-time in subdivision (e) of this rule.
 
 
R  390.832   Administrative responsibility.
  Rule 2. The  authority department shall  administer  tuition  grants  to  eligible students registered as undergraduate or graduate students.
 
R  390.833   Eligibility; requirements.
  Rule 3. An applicant may be considered for a tuition grant if the authority department finds that the applicant meets all of the requirements specified in sections 3 and 4 of the act and the following requirements:
  (a) Has resided continuously in this state for the preceding 12 months and is not considered a resident of any other state. A student who is not a United States citizen shall  be  a  holder  of  the  I-151  or  I-551 immigration identification card  signifying  permanent  residency  in  the United  States.  A refugee who meets the 12-month   state   residency requirement may be eligible for tuition grant consideration.
  (b) Is registered in, or expresses intent to register in an independent, nonprofit college or university in this state which is eligible for participation in the tuition grant program.
  (c) Has not defaulted on a loan guaranteed by the authority department.  Exceptions can be made if a defaulted borrower has made satisfactory repayment arrangements on the defaulted amount of the loan as determined by the authority department.
  (d) Has complied with the provisions of the act and the rules adopted by the authority department.
 
R  390.834   Eligibility; duration.
  Rule 4. A student is not eligible for a grant for more than 10 semesters of undergraduate education or its equivalent; more than 6 semesters of graduate education or its equivalent; and for more than 8 semesters in dental education or its equivalent in trimesters.  An  applicant  shall must reapply yearly for renewal of this grant.
 
R  390.835   Eligibility; financial resources of students and parents.
  Rule 5. An applicant is eligible  for  a  tuition  grant  award  if  the applicant's  financial  resources,  including  the  cash   or   equivalent resources  of  the  applicant's  parents  that  are  available   for   the applicant's higher education, as computed in accordance with the  criteria utilized in the state competitive scholarship program  authorized  by 1964 PA 208, Act No. 208 of the Public Acts of 1964, as amended, being S MCL 390.971 to 390.981, et  seq. of the Michigan Compiled Laws, shows a monetary need for a tuition grant.
 
R  390.838   Other awards.
  Rule 8. (1) A student receiving a state competitive scholarship as authorized by 1964 PA 208 Act No. 208 of the Public Acts of 1964as  amended, being S MCL 390.971 to 390.981 et seq. of the Michigan Compiled Laws, is not eligible to receive a tuition grant concurrently. However, the state competitive scholarship award of a student enrolled in an eligible tuition grant postsecondary institution may be increased with tuition grant funds up to the maximum tuition grant if the maximum tuition grant award is greater  than  the maximum Michigan competitive scholarship award.
  (2) If a student receives other scholarship awards covering full tuition and fees  specifically  designated  for  that  purpose,  the  student  is ineligible for a tuition grant.
  (3) A student holding a partial tuition award is eligible for a tuition grant not to exceed the difference between the other tuition award and the full cost of tuition.
  (4) A tuition grant award is limited to an amount consistent with other awards and financial need as determined by the authority department.
 
R  390.839   Eligibility;  acceptance  for   enrollment   at   institution required.
  Rule 9. An applicant is eligible for a tuition grant if the authority department determines that the applicant has actually been accepted for enrollment at an independent, nonprofit college or university approved by the state board of education for participation in this program.
 
R  390.840   Eligibility; full- or part-time status.
  Rule 10. (1) An applicant is eligible for a tuition grant if enrolled or accepted for enrollment as a full-time student.
  (2) An applicant may be eligible for a tuition grant if enrolled or accepted for enrollment as a part-time student for at least half-time but less than full-time credit. The awards shall must be determined as follows:
  (a) The amount of a part-time tuition grant award shall must be determined according to demonstrated financial need, using the tuition and fee charges to be assessed the student recipient, based upon the credit hours of enrollment.
  (b)  Part-time tuition grant award recipients shall must be charged 1 enrollment period of award eligibility each time an award payment is issued.
 
R  390.841   Eligibility; deadline dates.
  Rule 11. An applicant is eligible for a tuition grant only if the applicant meets the  deadline  dates  established  by  the  authority department.  An applicant who submits application materials after the deadline may be considered if funds are available to assist  students  who  submit  late materials.
 
R  390.843   Priority of grants.
  Rule 13. Grants shall must be given first to students having the greatest financial need and then to those with the next greatest financial need, as determined by the authority department, until available funds have been exhausted.
 
R  390.844   Payment of tuition grants.
  Rule 14. A tuition grant recipient shall receive the award from the department after certifying the name of the postsecondary institution in which the recipient is enrolled.  Payment of the scholarship awards must be prorated and must be forwarded to the postsecondary institution in which the recipient is enrolled.  Payment must be issued only after the postsecondary institution has certified that the student is still in good standing.  be  sent  payment  for  the prorated amount of the award at the start of each enrollment  period.  The payment shall be  sent  in  care  of  the  financial  aid  office  at  the institution in which the recipient is enrolled.
 
R  390.845   Failure to enroll.
  Rule 15. A grant recipient who, after receiving a tuition grant payment, does not enroll in the institution at which the recipient registered shall must have the full amount of the tuition grant cancelled.
 
R  390.846   Transfers.
  Rule 16. A tuition grant recipient may transfer to another institution at any time.  To  remain  eligible  for  a  tuition  grant,  however,  the recipient shall must enroll at an independent, nonprofit college or  university in this state which meets the full requirements of this grant program.
 
R  390.847   Leave of absence.
  Rule 17. (1) A tuition grant recipient who ceases to be enrolled at least half-time may request award reinstatement upon return to school as at least a half-time student during the same academic year for which the award was granted. The reinstatement of a tuition grant is dependent upon the availability of funds and the continued eligibility of the  recipient.
  (2) A grant recipient who relinquishes the tuition grant for any reason and does not return to school for the academic year for which the award was granted shall  must reapply to receive  consideration  for  future  academic years.
 
R  390.848   Refunds.
  Rule 18. A tuition grant recipient shall must release grant amounts to the institution in order that the institution may refund any allowable amount directly to the authority department if the student withdraws from the institution. A grant recipient who is dismissed or leaves the institution before the completion of a full semester and who is ineligible for a refund need not repay the authority department the amount of the tuition grant.
 
R  390.849   Residual awards.
  Rule 19. A student who is ineligible for a first semester award or does not apply for a  tuition  grant  for  the  freshman  year  may  apply  for consideration for the second enrollment period or in succeeding years.  An application for a second enrollment period residual award shall must be filed by the appropriate deadline date established by the authority department. A residual award is contingent upon the applicant's meeting all   eligibility requirements and the availability of funds at that time.