Title 20, Chapter 3, Section 295
(a) As used in this Code section, the term:
(1) "Agency" means the Georgia Higher Education Assistance Corporation created in Code Section 20-3-263 which is responsible for administering a program of guaranteed educational loans to eligible students and eligible parents known as the Georgia Higher Education Loan Program.
(2) "Applicant" means any person applying for issuance or renewal
of a license.
(3) "Borrower" means an individual who borrowed a guaranteed
educational loan under the Georgia Higher Education Loan Program.
(4) "Certified list" means a list provided by the agency of the
names of borrowers who default on guaranteed educational loans
made under the Georgia Higher Education Loan Program and are not
in a satisfactory repayment status; provided, however, the term
default shall not include any obligation which is restructured or
which is discharged under hardship provisions under the Federal
(5) "Default" means default as defined by federal law under the
Higher Education Act of 1965.
(6) "License" means a certificate, permit, registration, or any
other authorization issued by any licensing entity that allows a
person to engage in a profession, business, or occupation.
(7) "Licensee" means any person holding a license.
(8) "Licensing entity" means any state agency, department, or
board of this state which issues or renews any license,
certificate, permit, or registration to authorize a person to
engage in a profession, business, or occupation, including those
under Article 3 of Chapter 7 of Title 2, the "Georgia Pesticide
Use and Application Act of 1976"; Article 13 of Chapter 1 of Title
7, relating to mortgage lenders and mortgage brokers; Chapter 5 of
Title 10, the "Georgia Securities Act of 1973," relating to
securities salespersons and investment adviser representatives;
Part 2 of Article 1 of Chapter 6 of Title 12, relating to
foresters; Chapter 4 of Title 26, relating to pharmacists; Chapter
23 of Title 33, relating to insurance agents, counselors, and
other personnel; Chapter 1 of Title 43, relating to professions
and businesses; Chapter 39A of Title 43, relating to real estate
appraisers; or Chapter 40 of Title 43, relating to real estate
brokers and salespersons.
(9) "Satisfactory repayment status" means the borrower has agreed
to repay the defaulted loan to the agency and has made a payment
in the most recent prior 60 days.
(b) The agency shall maintain a state-wide certified list of borrowers in default who have not made satisfactory arrangements to ensure voluntary repayment. The certified list must be updated on a monthly basis. The agency shall submit to each licensing entity a certified list with the name, social security number, if known, date of birth, and last known address of each person on the list. (c) On or before January 1, 1999, all licensing entities shall implement procedures to accept and process the list provided by the agency in accordance with this Code section. Such procedures should be substantially similar if not identical to those implemented to comply with Code Section 19-11-9.3.
(d) Promptly after receiving the certified list from the agency, all
licensing entities shall determine whether an applicant or licensee
is on the most recent certified list. If an applicant or licensee
is on the certified list, the licensing entity shall immediately
notify the agency. That notification shall include the applicant's
or licensee's last known mailing address on file with the licensing
(e) After receiving notice from the licensing entity of applicants
or licensees who are on the certified list, the agency shall
immediately notify those individuals as specified in subsection (f)
of this Code section of the agency's intent to request that all
pertinent licensing entities suspend all licenses or withhold
issuance or renewal of any license.
(f) Notice for purposes of this Code section shall be initiated by
the agency. Notice to the borrower in default shall include the
address and telephone number of the agency and shall inform the
borrower in default of the agency's intent to submit the borrower's
name to the relevant licensing entities and to request that the
relevant licensing entities withhold issuance or renewal of the
license or suspend the license. The notice must also inform the
borrower in default of the following:
(1) The borrower in default has 20 days from the date of mailing
to enter into a satisfactory repayment status. If the borrower in
default fails to enter into a satisfactory repayment status or
does not respond within that time, the agency will send notice to
the appropriate licensing entities and request that the licenses
be suspended or the licensure applications be denied;
(2) The borrower in default may request an administrative hearing
and judicial review of that hearing under subsection (g) of this
Code section. A request for a hearing must be made in writing and
must be received by the agency within 20 days of service of
(3) If the borrower in default requests a hearing within 20 days
of service, the agency shall stay all action pending the hearing
and any appeals.
(g) All borrowers in default subject to the sanctions imposed in
this Code section shall have the right to a hearing before an
administrative law judge of the Office of State Administrative
Hearings pursuant to Article 2 of Chapter 13 of Title 50. A
borrower in default who requests a hearing within the time
prescribed in subsection (f) of this Code section shall have the
right to a hearing. The hearing shall be conducted as provided in
Article 2 of Chapter 13 of Title 50 within 45 days after such demand
is received. The only issues at the hearing will be whether:
(1) There is an outstanding guaranteed educational loan;
(2) The licensee or applicant is the borrower named in the loan;
(3) The borrower is or is not in default;
(4) The borrower has entered into a satisfactory repayment status;
(5) The loan obligation is not enforceable; and
(6) The loan has been restructured or the loan has been discharged
under hardship provisions under the Federal Bankruptcy Code.
With respect to the issues listed in this subsection, evidence
relating to the ability and willingness of a borrower to repay the
loan shall be considered in making the decision either to suspend a
license or deny the issuance or renewal of a license under this Code
section. The administrative law judge shall be authorized to enter
into an agreement or enter an order requiring periodic payments,
and, in each event, the administrative law judge shall be authorized
to issue a release for the borrower to obtain each license or
(h) The decision at the hearing shall be subject to appeal and
judicial review pursuant to Article 2 of Chapter 13 of Title 50 but
only as to those issues referred to in subsection (g) of this Code
section. Notwithstanding any hearing requirements for suspension
and denials within each licensing entity, the hearing and appeal
procedures outlined in this Code section shall be the only hearing
required to suspend a license or deny the issuance or renewal of a
license under this Code section.
(i) The agency shall prescribe release forms for its use. When the
borrower is determined to be in satisfactory repayment status or is
determined to be not in satisfactory repayment status but has been
determined in a hearing pursuant to subsection (g) of this Code
section to be unable to comply with the terms of the loan agreement
or to be not willfully out of compliance with such loan agreement,
the agency shall mail to the borrower in default and the appropriate
licensing entity a notice of release stating such determination.
The receipt of a notice of release shall serve to notify the
borrower in default and the licensing entity that, for the purpose
of this Code section, he or she is in satisfactory repayment status,
and the licensing entity shall promptly thereafter issue or
reinstate the license, unless the agency, pursuant to subsection (b)
of this Code section, certifies subsequent to the issuance of a
notice of release that the borrower in default is once again not in
satisfactory repayment status.
(j) The agency may enter into interagency agreements with state
agencies that have responsibility for the administration of
licensing entities as necessary to implement this Code section.
Those agreements shall provide for the receipt by other state
agencies and boards of federal funds to cover that portion of costs
allowable under federal law and regulation and incurred by state
agencies and boards in implementing this Code section.
(k) Any licensing entity receiving an inquiry as to the license
status of an applicant who has had an application for issuance or
renewal of a license denied under this Code section shall respond
only that the license was suspended or the licensure application was
denied pursuant to this Code section.
(l) The agency shall, and the licensing entities as appropriate may,
adopt regulations necessary to implement this Code section.