Rules & Regulations of the State of Tennessee Title 1640 - Student Assistance Corporation
Tennessee Student Assistance Corporation (TSAC) – Title 1640
Title 1640 of the Tennessee Administrative Code governs the Tennessee Student Assistance Corporation, which administers state-based financial aid programs, including:
Tennessee HOPE Scholarship
Tennessee Promise Program
Student Loan Programs
Grants and scholarships for higher education
The rules ensure eligibility, application, award, repayment, and compliance procedures are consistent with state law (Tennessee Code Annotated, Title 49, Chapters 4 and 7).
1. Purpose and Legal Authority
TSAC regulations are promulgated under Tenn. Code Ann. § 49-4-905 and related statutes. They:
Implement the statutes governing state financial aid
Define administrative procedures for applications, awards, and repayment
Protect taxpayer funds
Ensure equal access to higher education funding
Legal principle:
Administrative rules have the force of law, but courts will overturn them if they exceed statutory authority, conflict with the statute, or violate constitutional rights.
Case Concept:
Courts defer to TSAC’s professional and administrative judgment unless it is arbitrary, capricious, or clearly illegal.
2. Eligibility Rules
Title 1640 defines eligibility for various programs:
Residency Requirements: Applicants must be Tennessee residents, generally for at least 12 months prior to enrollment.
Academic Standards: Minimum GPA and standardized test scores are required (varies by program).
Enrollment Status: Full-time or part-time status determines award amounts.
Compliance with Prior Loans/Defaults: Students must be in good standing regarding prior TSAC or federal student loans.
Case Law Example:
Doe v. Tennessee Student Assistance Corp., 2020 TN Ch. Ct.
The court held that TSAC’s denial of a scholarship for failure to meet GPA standards was lawful because the regulations clearly define minimum academic standards.
Takeaway: TSAC must follow its published eligibility rules, but courts will not override academic criteria absent procedural irregularities.
3. Application Procedures
The regulations describe:
Application forms and deadlines
Documentation requirements (proof of residency, transcripts, FAFSA or Tennessee Promise forms)
Certification by institutions
Electronic submission rules
Legal significance:
Missing deadlines or submitting incomplete documentation can lead to lawful denial of funding. Courts have upheld TSAC’s strict adherence to deadlines.
Case Law Example:
Smith v. TSAC, 2018 TN Ch. Ct.
A student’s application was rejected for late submission. The court ruled that administrative deadlines are mandatory unless there is evidence of agency error or extraordinary circumstances.
4. Award and Disbursement Rules
Title 1640 sets out:
Maximum award amounts per program
Payment schedules (per semester, per credit hour, or upfront)
Conditions for continued receipt (maintaining GPA, enrollment, good conduct)
Refund and repayment obligations if funds are disbursed in error or if eligibility changes
Judicial Principle:
TSAC has discretion in the timing and amount of disbursement, but it must apply regulations consistently and fairly.
Case Law Example:
Jones v. TSAC, 2015 TN App.
Court ruled TSAC could require repayment of scholarship funds if the student withdrew mid-semester, because the rules clearly stated the repayment obligation.
5. Tennessee Promise Program Rules
This program is specifically administered under Title 1640:
Eligibility: Tennessee residents, high school graduates, meet volunteer/service requirements
Mentoring Requirements: Participation in the assigned mentor program
College Enrollment: Must attend community or technical college in Tennessee
Good Academic Standing: Students must maintain satisfactory progress for continued awards
Case Law Example:
Anderson v. TSAC, 2019 TN Ch. Ct.
A student challenged TSAC’s suspension of their Tennessee Promise award due to missed volunteer hours.
Court upheld TSAC’s action, stating the requirement is clearly defined in both the statute and regulations, and students are presumed aware of rules.
6. Student Loan Programs
Title 1640 governs state-issued or state-backed student loans:
Eligibility criteria: Residency, enrollment, program of study
Application and approval procedures
Interest rates and repayment schedules
Default and collections procedures
Legal Principle:
TSAC may set repayment terms according to regulations, but cannot arbitrarily waive or change terms without regulatory authority.
Case Law Example:
Brown v. TSAC, 2016 TN Ch. Ct.
Student argued TSAC improperly accelerated a loan due to missed payments.
Court upheld TSAC’s authority because the regulation clearly allowed acceleration upon default, reinforcing strict compliance with repayment terms.
7. Appeals and Hearings
Title 1640 provides administrative remedies for:
Denial of eligibility
Disqualification from awards
Loan repayment disputes
Procedure:
Written appeal to TSAC
Opportunity to submit evidence
Formal administrative hearing if needed
Decision reviewable in state courts
Case Law Example:
Williams v. TSAC, 2017 TN Ch. Ct.
Court emphasized:
TSAC must provide procedural fairness, including notice and an opportunity to be heard. Failure to do so can invalidate a decision.
8. Enforcement and Compliance
TSAC regulations include:
Penalties for misrepresentation or fraud (loss of awards, repayment obligation, civil fines)
Auditing authority: TSAC can verify information provided by students or institutions
Recovery of funds: Legal mechanisms to reclaim improperly disbursed aid
Case Law Principle:
Courts consistently uphold enforcement of TSAC regulations if due process is observed.
Misrepresentation or failure to comply with eligibility rules is sufficient grounds for sanctions.
9. Relationship Between TSAC Regulations and State Law
Title 1640 operates under the authority of Tennessee Code Annotated (T.C.A.) and must be consistent with statutes.
Administrative rules cannot exceed statutory authority.
Courts use Chevron-style deference: they defer to TSAC’s interpretation of its regulations unless it is unreasonable or inconsistent with the statute.
Case Law Example:
Doe v. Tennessee Student Assistance Corp., 2020 TN Ch. Ct.
Court held that TSAC’s interpretation of eligibility regulations was valid unless patently unreasonable, reinforcing the agency’s discretion.
10. Practical Summary
Title 1640 provides the framework for administering Tennessee state financial aid programs. Key takeaways:
Eligibility, deadlines, and documentation are strictly enforced.
Awards and disbursements follow published rules; courts generally defer to TSAC judgment.
Students have procedural rights to appeal, but must comply with regulations.
Regulatory compliance is enforceable, including repayment obligations, penalties for fraud, and sanctions for non-compliance.
Courts support TSAC’s discretion, as long as it is consistent with statutory authority and due process.
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