1. (a) An institution with a default rate calculated under 20 AAC 15.925 in excess of 20 percent must develop and submit a default reduction plan, acceptable to the commission, within 45 days after the date of the default rate determination.
2. (b) An institution that fails to comply with (a) of this section is ineligible to receive proceeds of new education loans until the required default reduction plan is submitted and determined by the commission to be reasonably expected to effect the necessary default reduction.

(Eff. 4/20/2000, Register 154)

Authority: AS 14.43.105, AS 14.43.320, AS 14.43.730, AS 14.43.120, AS 14.43.630, AS 14.43.740