ARTICLE 7
SCHOLARSHIPS, LOANS, AND GRANTS
20-3-316. Powers and duties of authority; employees' functions; servicing of educational loans; registration with Selective Service System; conflicts with federal or other state law; confidentiality.
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In addition to all other provisions of this part as set forth in each subpart of this part and in furtherance of the purposes of the authority, the authority shall have the following general powers, duties, and functions:
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The authority shall establish and administer each student assistance program provided for in the respective subparts of this part in accordance with the provisions of this part. Pursuant thereto, the authority is further authorized:
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To adopt rules, regulations, and policies necessary, appropriate, or convenient for the administration of its affairs; the execution of its powers, duties, and functions; and the accomplishment of its corporate purposes, as prescribed in each subpart of this part;
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To receive all moneys made available by the General Assembly or otherwise for the purposes of the authority and to use such moneys in accordance with the subparts of this part;
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To administer federal funds allotted to the authority or to the state for use by the authority in respect of student financial aid programs provided for in federal laws, related matters, and related administrative costs;
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To enter into contracts and agreements with schools upon such terms and conditions as may be prescribed by the authority or otherwise agreed upon between the authority and the school, not inconsistent with this part, applicable state or federal law, or agreements entered into between the authority and any federal or state agency;
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To require that schools located in the state shall designate one or more persons who shall be responsible for receiving and controlling and disbursing, delivering, or crediting to accounts, as the case may be, student aid checks or funds that are required to be or which may optionally be disbursed to, delivered to, or otherwise provided to the school under this part, for further disbursement, delivery, or credit to the account of students enrolled therein; and to provide for matters relative thereto;
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To require that schools located in the state or, with approval of the authority, a combination of schools jointly shall provide fidelity bond coverage of school employees who have access to checks or funds that may be routed through the school under this part to students enrolled therein, in such sums and conditioned in such respects and as to the insured as may be reasonably necessary to protect the interests of the authority; and to provide for matters relative thereto;
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To provide for remittance to and proper application by the authority of school refunds to students who are recipients of financial assistance provided by the authority under this part, consistent with the requirements of any other federal or state law, rule, or regulation which provides financial aid to students; and to provide for the application of school refunds relative to those programs;
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To limit, suspend, or terminate the participation of a school in any financial assistance program administered by the authority, in accordance with rules and regulations of the authority that are consistent with this part, applicable state or federal laws, and agreements entered into between the authority and the school or any federal or state agency; and to provide for such formal and informal procedures in regard thereto as may be appropriate;
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To require that reports, in such form and containing such information as the authority may prescribe, be furnished to the authority by schools as it may deem necessary for the effective performance of its powers, duties, and functions under this part;
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To require that such administrative and fiscal procedures be used by the authority and schools as may be necessary to protect the financial interests of the authority and to ensure proper and effective administration of programs administered by the authority;
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To keep and maintain, and to require that schools keep and maintain, such records as may be determined to be necessary for proper and efficient administration of the programs under this part; and to require that such school records be made available to employees of the authority for examination and inspection as may be necessary or appropriate;
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To secure data, except where specifically prohibited by state or federal law, from any state agency, department, instrumentality, political subdivision of the state, or any other source, for the purpose of verifying information submitted by a student or a parent when applying for or receiving any financial assistance provided by the authority under this part; and to pay costs incurred by the provider of such data;
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Except where specifically prohibited by state or federal law, to obtain from each state agency, department, instrumentality, and political subdivision information contained in its records relative to the present or last known address and telephone number of a borrower, comaker, cosigner, or endorser, identified to the provider by name and social security number, and to pay costs incurred by the provider of such information; and each state agency, department, instrumentality, and political subdivision is authorized and directed to provide the information specified in this subparagraph to the authority upon its request;
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To gather information on all educational financial assistance funds available from any source to residents of the state and to disseminate such information through such methods of mass or individual communication as may be necessary better to assure that students and parents are aware of the availability of such financial resources;
(N.1) To advertise or otherwise promote the programs, functions, and purposes of the authority and to expend funds available to the authority for such purposes;
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To solicit, receive, and accept funds from any source, public or private, by gift, grant, bequest, loan, or otherwise, either absolutely or in trust, and to hold, use, administer, and expend such funds on its behalf and for any of its corporate purposes; and to acquire from any source, public or private, by purchase, lease, gift, bequest, or devise, any property, real, personal, or mixed, either absolutely or in trust, and to hold, use, administer, and dispose of such property on its behalf and for any of its corporate purposes;
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To provide procedures for the filing, hearing, and determination of an appeal made by an aggrieved party of a decision made by the authority in the administration of financial assistance programs provided for in this part and for all matters relative thereto;
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To enter into agreements and undertakings as may be necessary or appropriate in the exercise of its powers, duties, and functions under this part;
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To perform such other acts as may be necessary or appropriate to carry out effectively the purposes of the authority under this part;
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To adopt an official seal and alter the seal at its pleasure;
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To maintain a principal office and such other offices as may be appropriate;
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To adopt bylaws and policies for the regulation of its affairs and the conduct of its business;
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To bring and defend actions in the name of the authority and to plead and be impleaded;
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To do any and all things necessary, desirable, convenient, or incidental for the accomplishment of the objectives of this chapter and to exercise any power usually possessed by private corporations performing similar functions which is not in conflict with the public purposes of the authority or the Constitution and laws of this state, including, but not limited to:
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The power to retain accounting and other financial services;
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The power to purchase all kinds of insurance, including, without limitation, insurance against tort liability and against risks of damage to property;
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The power to indemnify and hold harmless any parties contracting with the authority or its agents from damage to persons or property; and
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The power to act as a self-insurer with respect to any loss or liability and to create insurance reserves;
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To appoint officers, agents, and employees, to prescribe their duties and qualifications, and to fix their compensation; and
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To incorporate one or more nonprofit corporations to aid the authority in carrying out any of its powers, duties, and functions. Any such nonprofit corporation created pursuant to this subparagraph shall be a body corporate and politic and shall be created pursuant to Chapter 3 of Title 14, the "Georgia Nonprofit Corporation Code," and the Secretary of State shall be authorized to accept such filing. Upon dissolution of any such nonprofit corporation, any assets of such nonprofit corporation shall revert to the authority or to any successor to the authority, or failing such succession, to the State of Georgia. The authority shall not be liable for the debts, obligations, or bonds of any such nonprofit corporation or for the actions or omissions to act of any such nonprofit corporation unless the authority so consents;
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Employees of the authority may perform management, supervisory, administrative, and clerical functions required by the commission and the corporation, and the authority will be compensated for such expenses as directed by the board of commissioners;
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To service or contract for the servicing of educational loans, including the servicing of such loans by the authority on behalf of others, to contract in advance for the servicing of educational loans, and to contract for the performance by the authority of educational loans;
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Each applicant who, as of the date of application for financial assistance under this part, is required but has not registered with the Selective Service System of the United States pursuant to 50 U.S.C. Section 453, as amended, shall be ineligible to receive financial assistance under this part. Each applicant shall, under penalty of perjury, certify compliance or noncompliance with the registration requirements of the Military Selective Service Act of the United States and provide such other information as the authority may reasonably require.A person may not be denied state student financial aid by reason of failure to present himself for and submit to registration under Section 3, 50 U.S.C. Appx. Section 453, if the requirement for the person to so register has terminated or become inapplicable to the person; and the person shows by a preponderance of the evidence that the failure of the person to register was not a knowing and willful failure to register;
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If any conflict exists between this part and Part 2 of this article, the federal act, or other federal laws, or any rules or regulations promulgated under the federal act, which conflict will result in a loss by the authority of any federal funds or other funds that would otherwise be available to it for carrying out its purposes under this part, the authority is authorized and directed to adopt appropriate rules, regulations, and policies, consistent with Part 2 of this article, the federal act, or such other federal laws to remove such conflict and thereby to provide for the receipt of such funds; provided, however, that such rules, regulations, or policies are not in derogation of the Constitution or laws of this state, other than this part, or any contract to which the authority is a party and are wholly in conformity with the purposes of the authority as set forth in this part; and
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To the extent that this part is inconsistent with any other state general or special law, rule, or regulation, other than Part 2 of this article, this part shall be controlling.
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Pursuant to Code Section 50-18-70, the authority shall not disclose and shall keep confidential, in each case unless identifying information has been redacted:
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Records that include information identifying a student or former student by name, address except for ZIP Code, telephone number, or emergency contact; and
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Records that reveal an individual's social security number, mother's birth name, credit card information, debit card information, bank account information, account number, utility account number, password used to access his or her account, financial data or information, insurance or medical information in all records, unlisted telephone number if so designated in a public record, personal e-mail address or cellular telephone number, or month and day of birth.
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Except as prohibited by federal or state law, individuals who owe any amount to the authority relating to any loan, scholarship, or grant made by the authority, including loan repayments and refunds, are, without judicial action, subject to garnishment of their pay, loss of a professional license, offset of lottery winnings, and offset of a state tax refund in accordance with rules and regulations promulgated by the authority. As used in this subsection, the term "refund" means scholarship and grant amounts paid to or on behalf of individuals, in accordance with rules and regulations promulgated by the authority, subsequently determined to be ineligible to receive such scholarship and grant amounts. The remedies set forth in this subsection shall be in addition to all other remedies available at law and in equity.
(Code 1933, § 32-3707, enacted by Ga. L. 1980, p. 835, § 3; Ga. L. 1981, p. 735, § 34; Ga. L. 1986, p. 759, § 2; Ga. L. 1992, p. 6, § 20; Ga. L. 1992, p. 1001, §§ 4, 5; Ga. L. 1995, p. 961, § 8; Ga. L. 1996, p. 837, §§ 3, 4; Ga. L. 2003, p. 904, § 1.1; Ga. L. 2005, p. 1134, § 2/HB 298; Ga. L. 2014, p. 801, §§ 4, 5/HB 697; Ga. L. 2015, p. 935, § 3/HB 320.)
The 2014 amendment,
effective July 1, 2014, in subparagraph (1)(O), inserted "solicit," and inserted ", and accept" near the beginning; substituted a semicolon for "; and" at the end of division (1)(W)(iv); substituted "; and" for a semicolon at the end of subparagraph (1)(X); and added subparagraph (1)(Y).
The 2015 amendment,
effective July 1, 2015, designated the existing provisions of this Code section as subsection (a) and added subsections (b) and (c).
Code Commission notes.
- Pursuant to Code Section 28-9-5, in 1986, the second reference to "of this part" was substituted for "hereof" in the introductory language (now introductory paragraph of subsection (a)).
Pursuant to Code Section 28-9-5, in 1987, "under the federal act" was substituted for "thereunder" near the beginning of paragraph (3) (now paragraph (a)(5)).
Pursuant to Code Section 28-9-5, in 1996, a semicolon was substituted for a period at the end of paragraph (2) (now paragraph (a)(2)).
Pursuant to Code Section 28-9-5, in 2003, "Section" was inserted in the third sentence of paragraph (4) (now paragraph (a)(4)).
JUDICIAL DECISIONS
Editor's notes.
- In light of the similarity of the statutory provisions, a decision under former Code 1933,
§
32-3706, which was subsequently repealed but was succeeded by provisions in this Code section, is included in the annotations for this Code section.
Loan default resulting from collegiate discontinuation no defense.
- It is not a valid defense to an action to recover on teacher scholarship loan notes that the defendant recipient's default in the terms of the loan agreement, by discontinuing a course or program of study for which the student was receiving scholarship aid, resulted from the student's involuntary discontinuation by the authorities of the college at which the student was enrolled. Swindell v. Georgia State Dep't of Educ., 138 Ga. App. 57, 225 S.E.2d 503 (1976) (decided under former Code 1933,
§
32-3706).
RESEARCH REFERENCES
C.J.S.
- 81A C.J.S., States,
§
235.