KRS 164.753: Rules and regulations governing loans, loan guarantees, scholarships,

grants, and work-study programs.

(1) In the instance of loans, the rules and regulations adopted by the board may include,

but not be limited to, those which:

(a) Are necessary to qualify the authority as an insured lender under the Higher

Education Act of 1965, as amended;

(b) Require that loans be made only to those eligible students who are unable to

secure comparable loans from private lenders; and

(c) Are necessary to quali fy the authority as a lender under the Public Health

Service Act, as amended.

(2) In the instance of insured student loans and loan guarantees, the rules and

regulations adopted by the board shall include, but not be limited to, those which

are necessary t o qualify the authority to insure loans under the federal act, as

amended, and following such qualification to issue loan guarantees to participating

lenders on any loans advanced by such lenders to eligible students attending or

planning to attend any participating institution.

(3) In the instance of scholarships, except scholarships provided pursuant to KRS

164.518, the rules and regulations adopted by the board shall include, but not be

limited to, those which:

(a) Specify ways in which superior academic achievement or ability or special

talents will be identified and measured;

(b) Ensure that the amount of scholarship to a student attending or planning to

attend a participating institution will not exceed the student's total cost of

attendance, or the ma ximum scholarship as established by the board,

whichever is less;

(c) Restrict scholarships to persons who are classified as resident students under

the rules and regulations of the Council on Postsecondary Education;

(d) Ensure that scholarships are award ed only to eligible students who have

applied for such federal, state, or institutional student financial assistance

programs as the authority may require;

(e) Ensure that scholarships are awarded only to eligible students who are

planning to enroll, accepted for enrollment, or are enrolled in a participating

institution; and

(f) If eligibility for the scholarship is based on financial need, ensure, by such

needs analysis as the authority may require, that the person is in need of the

assistance in order to enroll in or complete an eligible program of study as

defined by the board.

(4) In the instance of grants, the rules and regulations adopted by the board shall

include, but not be limited to, those which:

(a) Ensure that the amount of a grant to a student will not exceed the financial

need of the student as determined in accordance with paragraph (e) of this

subsection or the maximum grant as established by the board, whichever is

less;

(b) Restrict grants to persons who are classified as resident students under the

rules and regulations of the Council on Postsecondary Education;

(c) Ensure that grants are awarded only to eligible students who have applied for

such federal, state, or institutional student financial assistance programs as the

authority may require;

(d) Ensure that grants are awarded only to eligible students who are planning to

enroll, accepted for enrollment, or are enrolled in a participating ins titution;

and

(e) Ensure, by such needs analysis as the authority may require, that grants be

made only to students who have insufficient financial resources to enroll in or

complete an eligible program of study as defined by the board.

(5) Funds appropriated to the financial assistance program established by KRS 164.780

and 164.785 shall be administered by the board in accordance with the provisions of

KRS 164.780 and 164.785.

(6) In the instance of work -study payments, rules and regulations adopted by the board

shall include, but not be limited to, those which require that:

(a) The employment opportunity available for the student will not interfere with

the student's normal progress toward a degree, diploma, or certificate;

(b) Contracts to promote increased employment opportunities for eligible students

will not result in the displacement of employed workers or impair existing

contracts for services; and

(c) The work-study payment will not exceed the financial need of the student or

the maximum payment as established by the board, whichever is less.