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Citations: (R)652.52 AsOfDate: 12/31/95 Sec. 652.52 How are scholarship awards to be made and scholarship proceeds returned and transferred? (a) An institution shall provide scholarship proceeds to a Scholar in at least two payments per academic year. (b) In the event that a Scholar refuses a scholarship, does not attend courses, transfers to another institution, or becomes ineligible for a scholarship and cannot be reinstated in the same award year, the institution shall return the scholarship proceeds to the Secretary. (c) A Scholar who ceases to be eligible for NSSP scholarship proceeds at an institution before completion of an academic period for which payment of a scholarship award has been received is only eligible for a prorated portion of the scholarship award and is liable to the Secretary for any overpayment. The prorated portion of the scholarship to be returned to the Secretary must be in proportion to the portion of the academic period during which the Scholar was ineligible for a scholarship. The institution shall return the overpayment to the Secretary in accordance with the provisions governing the recovery of overpayments in 34 CFR 690.79 of the Pell Grant Program regulations. (d) The institution shall pay a pro rata share of the scholarship for which the Scholar is eligible if he or she enrolls for less than a full academic year to complete his or her baccalaureate degree. The institution shall return the remaining share of the scholarship to the Secretary. (e) If a Scholar transfers to another institution of higher education during an award year, the institution in which the Scholar was originally enrolled shall calculate, and immediately inform the Secretary of, the amount of the scholarship disbursed to the Scholar at that institution and the amount of the award that remains to be disbursed for the award year. The Secretary will then reallocate the undisbursed funds from the original institution to the institution to which the Scholar has transferred. As long as the new institution to which the Scholar transfers determines that the Scholar meets the provisions of Secs. 652.40 and 652.42, it may continue to provide scholarship funds to the Scholar. (Authority: 20 U.S.C. 5383 and 5384) |