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<regulation prefix="Regulation" num=".09" citation="COMAR 13B.02.06.09" title_num="13B" subtitle_num="02" chapter_num="06" heading="Claim Adjudication.">
  <paragraph num="A.">
    <text>The Secretary may determine the scope of investigation necessary to adjudicate a claim.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The Secretary may request information and records from the student, school, lenders, loan servicers, the USED, and others as needed in the Secretary’s judgment.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The Secretary shall determine whether to approve or deny a claim.</text>
  </paragraph>
  <paragraph num="D.">
    <text>If a claim is approved, the Secretary shall determine the:</text>
    <paragraph num="(1)">
      <text>Amount to be awarded;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Time, place, and manner of payment;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Conditions upon which payment shall be made; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Order in which payments shall be made.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>In determining whether to grant or deny a claim and the amount to be awarded for an approved claim, the Secretary may consider the:</text>
    <paragraph num="(1)">
      <text>Basis of the claim;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Evidence obtained in the investigation;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Damages or injuries sustained by the student as a result of the school’s actions;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Student’s participation in a transfer program or teach-out;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Student’s progress toward or receipt of a degree, certificate, or other terminal award;</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Length of any break in the student’s attendance and the reason;</text>
    </paragraph>
    <paragraph num="(7)">
      <text>School’s efforts to resolve the claim;</text>
    </paragraph>
    <paragraph num="(8)">
      <text>Amount available and likely to become available to the Fund for payments of claims;</text>
    </paragraph>
    <paragraph num="(9)">
      <text>Size and number of claims filed or likely to be filed against the school; and</text>
    </paragraph>
    <paragraph num="(10)">
      <text>Past decisions on similar claims.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Claim Based on School Closure.</text>
    <paragraph num="(1)">
      <text>If a claim is based on a school’s closure, the student shall be presumed to have incurred no damages or injuries for tuition and fees if the:</text>
      <paragraph num="(a)">
        <text>Student was awarded the degree, certificate, or other award that the student sought;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Student participates in a teach-out or transfer program as approved by the Secretary;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Student’s loan is discharged or eligible for discharge; or</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Claim is for tuition and fees applicable to a semester or term other than the one in which the school closed.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>A student may overcome the presumption in §F(1) of this regulation by providing proof of damages or injuries notwithstanding the receipt of an award, successful participation in a teach-out or transfer program, or loan discharge.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Notwithstanding any other provision of this chapter, a student may not receive an award for loan amounts that have been or are eligible for discharge.</text>
  </paragraph>
  <paragraph num="H.">
    <text>Payment Due to School Closure.</text>
    <paragraph num="(1)">
      <text>If the Secretary awards payment to a student because of a school closure, the payment shall first be made to a lender or loan servicer, as applicable, as repayment of the student’s debt to the lender for that portion of the indebtedness that pertains to tuition and fees.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>As a condition of payment, the lender or loan servicer shall update the student’s credit reports to reflect full or partial satisfaction of the debt, as applicable, and forward confirmation of the update to the Secretary.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Upon the request and written authorization of the student, the Secretary may attempt to have the lender or loan servicer discharge all or a portion of the student’s debt.</text>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>The Secretary’s decision on a claim shall be in writing and mailed to the student and school and shall become final 30 days after the date of the Secretary’s determination unless the student, within the 30-day period, files with the Secretary a written request for reconsideration. The written request shall contain evidence that supports a request for reconsideration. The Secretary’s decision on reconsideration is final.</text>
  </paragraph>
  <paragraph num="J.">
    <text>A claimant or other person does not have any right in the Fund as beneficiary or otherwise.</text>
  </paragraph>
</regulation>