Sec. 35. (a) This section applies:

(1) to claims against the balance of the fund; and

Terms Used In Indiana Code 22-4.1-21-35

  • fund: refers to the student assurance fund established by section 18 of this chapter. See Indiana Code 22-4.1-21-7
  • postsecondary proprietary educational institution: means a person doing business in Indiana by offering to the public, for a tuition, fee, or charge, instructional or educational services or training in a technical, professional, mechanical, business, or industrial occupation, in the recipient's home, at a designated location, or by mail. See Indiana Code 22-4.1-21-9
(2) in cases in which a student or an enrollee of a postsecondary proprietary educational institution is protected by both a surety bond and the balance of the fund, only after a claim against the surety bond exceeds the amount of the surety bond.

     (b) A student or an enrollee of a postsecondary proprietary educational institution who believes that the student or enrollee has suffered loss or damage resulting from any of the occurrences described in section 15(c) of this chapter may request the department to file a claim with the department against the balance of the fund. If there is a surety bond in an amount sufficient to cover a claim or part of a claim under this section, a claim against the balance of the fund must be construed to be a claim against the surety bond first to the extent that the amount of the surety bond exists and the balance of the claim may be filed against the balance of the fund.

     (c) A claim under this section is limited to a refund of the claimant’s applicable tuition and fees.

     (d) All claims must be filed not later than five (5) years after the occurrence that results in the loss or damage to the claimant.

     (e) Upon the filing of a claim under this section, the department shall review the records submitted by the appropriate postsecondary proprietary educational institution described under section 22 of this chapter and shall investigate the claim and attempt to resolve the claim as described in section 34(d) of this chapter.

     (f) Upon a determination by the department that a claimant shall be reimbursed under the fund, the department shall prioritize the reimbursements under the following guidelines:

(1) A student’s educational loan balances.

(2) Federal grant repayment obligations of the student.

(3) Other expenses paid directly by the student.

As added by P.L.107-2012, SEC.61. Amended by P.L.178-2016, SEC.23.