KRS 164.740: Definitions for KRS 164.740 to 164.7891.

As used in KRS 164.740 to 164.7891, the terms listed below shall have the following

meanings:

(1) "Authority" means the Kentucky Higher Education Assistance Authority;

(2) "Board" means the board of directors of the Kentucky Higher Education Assistance

Authority;

(3) "Comprehensive transition and postsecondary program" means a program approved

by the United States Department of Education as defined in 34 C.F.R. secs. 668.230

to 668.233;

(4) "Eligible institution" means, unless otherwise specified in this ch apter, any

educational institution or class of institutions designated as an institution of higher

education pursuant to section 102 of the federal act, 20 U.S.C. sec. 1002, as eligible

to participate in, and that actively participates in, the Federal Pell Grant Program or,

for purposes of insured student loans, is defined as an eligible institution pursuant to

section 435 of the federal act, 20 U.S.C. sec. 1085, provided that no right of

participation shall be deemed vested pursuant to this subsection in a ny institution,

including, but not by way of limitation, any college, school of nursing, vocational

school, or business school;

(5) "Eligible lender" means any entity described as eligible pursuant to the federal act

to make or originate insured student lo ans, provided that no right of participation

shall be deemed vested hereby in any lender;

(6) "Eligible student" means any student enrolled or accepted for enrollment at a

participating institution, meeting the criteria established by the federal act and t his

chapter for the various authority administered programs;

(7) "Endorser" means a person who signs a student loan promissory note as an

accommodation party, in the manner of KRS 355.3 -419, and is secondarily liable

for payment on such note;

(8) "Federal act" means the Higher Education Act of 1965, Pub. L. 89 -329, as

amended;

(9) "Grant" means a gift of money, tuition discount, waiver of tuition and fees, or other

monetary award that requires neither employment nor repayment, except under

conditions prescribed by the board, and is based on demonstrated financial need and

such other terms and conditions as the board may prescribe;

(10) "Honorary scholarship" means a certificate of merit or achievement or other

appropriate document which may be issued by the board to students in recognition

of superior academic ability or achievement or a special talent;

(11) "Insured student loan" means a loan to an eligible borrower, who is qualified under

the federal act, on which the payment of principal and interest is insured as

evidenced by a loan guarantee issued by the authority and reinsured by the secretary

under the federal act;

(12) "Loan" mea ns an advance of money, to be used exclusively for payment of

educational expenses, evidenced by a promissory note or similar instrument

requiring repayment under specified conditions;

(13) "Loan guarantee" means the certificate, document, or endorsement i ssued by the

authority as evidence of insurance of a loan as to both principal and interest and of

reinsurance by the secretary under the federal act;

(14) "Participating institution" means any eligible institution, to the extent that it offers

an eligible program of study, having a contract in force with the authority, if

required by the authority, on such terms as the authority may deem necessary or

appropriate to the administration of its programs;

(15) "Participating lender" means any eligible lender, i ncluding the authority and the

Kentucky Higher Education Student Loan Corporation, which has in force a

contract with the authority providing for loan guarantee to be issued by the

authority under the federal act and this chapter;

(16) "Penal institution" means any penitentiary, detention facility, adult correctional

facility, jail, or other similar institution operated by the state, local, or federal

government or by private business;

(17) "Recognition award" means an advance of money to or on behalf of a student in

recognition of superior academic ability, achievement or special talent;

(18) "Regional accrediting association" means the Middle States Association of Colleges

and Schools, Commission on Higher Education; New England Association of

Schools and Colleges, Commission on Institutions of Higher Education; North

Central Association of Colleges and Schools, Higher Learning Commission;

Northwest Association of Schools and Colleges, Commission on Colleges;

Southern Association of Colleges and Schools, Co mmission on Colleges; or

Western Association of Schools and Colleges, Accrediting Commission for Senior

Colleges and Universities;

(19) "Scholarship" means a gift of money to provide an incentive for fulfillment of a

particular public purpose which may be based on any combination of financial

need, superior academic ability, achievement, a special talent, or special condition

serving a public purpose and such other terms and conditions as the board may

prescribe;

(20) "Secretary" means the United States Secretary of Education; and

(21) "Work study" means an award of money disbursed by the board at specified

intervals to students, or as reimbursement to employers of students, who provide

needed services for a specified number of hours in a capacity approved b y the

board.