DEPARTMENT OF TREASURY

HIGHER EDUCATION ASSISTANCE AUTHORITY

DIFFERENTIAL GRANT PROGRAM

(By authority conferred on the higher education assistance authority by section 7a

of Act No. 105 of the Public Acts of 1978, as amended, being S390.1277a of the

Michigan Compiled Laws)

R 390.1651 Definitions.

Rule 1. (1) As used in these rules:

(a) "Academic period" means an average of 600 or more instructional minutes

per credit hour on a quarter schedule and 800 or more instructional minutes per

credit hour on a semester schedule or as otherwise prescribed by the legislature.

(b) "Academic year" means 2 semesters or 3 terms or quarters beginning after

August 1 each year.

S390.1271 et seq. of the Michigan Compiled Laws.

(d) "Award" means a differential grant.

(e) "Default" means failure to comply with the terms of a loan guaranteed by

the authority so that the authority finds it necessary to reimburse the original lending

institution for the balance of the loan.

(f) "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.

(g) "Independent nonprofit college or university" means a Michigan degree-

granting independent college or university listed in the "Directory of Michigan

Institutions of Higher Education," published by the Michigan department of education.

(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 (f) of this rule.

(i) "Refugee" means a person who holds an I-94 immigration identification

card with the word "refugee" either typed or stamped on it.

(j) "Tuition and fees" means that amount established by the higher education

assistance authority for use in determining awards under Act No. 208 of the Public

Acts of 1964, as amended, and Act No. 313 of the Public Acts of 1966, as amended,

being S390.971 et seq. and S390.991 et seq. of the Michigan Compiled Laws.

(2) Terms defined in the act have the same meanings when used in these rules.

History: 1985 AACS.

R 390.1652 Instructional programs and credits; eligibility.

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Rule 2. (1) To be eligible, a student shall be enrolled in an associate degree program

or a baccalaureate degree program.

(2) Credits applicable to a high school diploma or general education development

certificate shall not be considered when determining student grant eligibility.

(3) Credits by examination and life experience credits shall not be considered

when determining student grant eligibility.

History: 1985 AACS.

R 390.1653 College enrollment required for eligibility; additional assistance.

Rule 3. (1) To be eligible for an award, a student shall enroll as a freshman,

sophomore, junior, or senior after July 31, 1981.

(2) A student who has received a baccalaureate degree may be eligible for

additional assistance if the total assistance received does not exceed the longevity limit

specified in R 390.1654 and if the student meets all eligibility requirements.

History: 1985 AACS.

R 390.1654 Eligibility; duration.

Rule 4. A student is not eligible for a grant for more than 10 semesters of full-time

undergraduate education or its equivalent. An applicant shall reapply yearly for renewal

of this grant.

History: 1985 AACS.

R 390.1655 Institutional certification requirements.

Rule 5. An institution shall certify the eligibility of each grant applicant enrolled

at the institution. Provisions for certification shall be as follows:

(a) Each applicant shall be enrolled as an undergraduate.

(b) Student enrollment status shall be determined at the time of the enrollment

count date. The enrollment count date is 1/10 of the total number of class days in the

academic period, plus or minus 5 class days, excluding Saturday or Sunday.

enrolled in an eligible program of study.

(d) Each enrollment period the institution shall certify, consistent with

institutional records, that each applicant has been a Michigan resident for the

preceding 12 months and has not claimed residency in any other state during that time. A

student who is a Michigan resident, but 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 state residency requirement

specified in this subdivision may be eligible for award consideration.

(e) A student who has failed to sign and file an application/contract with the

institution shall not be reported as an eligible student.

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History: 1985 AACS.

R 390.1656 Amount of award.

Rule 6. (1) An award for a full-time recipient shall be the amount established by

the legislature annually.

(2) An award for a part-time recipient shall be the amount established by the

legislature annually.

(3) An award to an undergraduate student who attends an institution both full-time

and part-time for separate enrollment periods during the same academic year shall be

prorated.

(4) In the event the annual appropriation proves insufficient to award all eligible

students at the maximum established by the legislature, the authority shall prorate

awards based upon available funding.

History: 1985 AACS.

R 390.1657 Payment of awards.

Rule 7. Award payments shall be sent to each institution each enrollment period on

behalf of the recipients for that enrollment period. Payment shall be made after the

required certification is forwarded by the institution to the authority.

History: 1985 AACS.

R 390.1658 Other awards.

Rule 8. (1) If a student receives other tuition awards or tuition waivers covering

full tuition and fees that are specifically designated for that purpose, the student is

ineligible for a differential grant.

(2) A student holding a partial tuition award or tuition waiver is eligible for an

award under the act in an amount that does not exceed the difference between the other

tuition award and the actual cost of tuition and fees.

History: 1985 AACS.

R 390.1659 Refunds; institution reimbursement of state for overpayment.

Rule 9. (1) If a student withdraws from an institution during the institutionally

established refund period after receiving an award payment, a refund is due the

authority. The amount shall be based upon the percentage of established tuition and fees

paid by the award.

(2) Participating institutions shall be held liable for any state overpayment due

to incorrect college certification of a student and shall fully reimburse the state for any

overpayment.

History: 1985 AACS.

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R 390.1660 Loan default; basis for grant denial; exception.

Rule 10. A grant shall be denied if an applicant has defaulted on a loan guaranteed

by the authority. Exception may be made if a defaulted borrower has made satisfactory

repayment arrangements on the defaulted amount of the loan as determined by the

authority.

History: 1985 AACS.

R 390.1661 Award eligibility.

Rule 11. To receive an award, an applicant shall comply with the provisions of

the act and these rules.

History: 1985 AACS.

R 390.1662 Application/acceptance contracts.

Rule 12. An award recipient shall complete an application/acceptance contract

before receipt of the award. The contract between the award recipient and the

authority shall specify the conditions upon which the award is granted.

History: 1985 AACS.

R 390.1663 Transfers.

Rule 13. An award recipient may transfer to another institution at any time. To

remain eligible for an award, the recipient shall enroll at an eligible institution and meet

the requirements for an award.

History: 1985 AACS.

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