Tennessee § 49-7-2125 - Student loan default—Suspension, denial, and revocation of registration.

§ 49-7-2125. Student loan default—Suspension, denial, and revocation of registration.

As used in this section, unless the context otherwise requires: “Guarantee agency” means a guarantor of student loans that has an agreement with the United States secretary of education; and “TSAC” means the Tennessee student assistance corporation. Upon receiving a copy of a final order as provided in subsection (c) from TSAC or a guarantee agency, the secretary of state shall suspend, deny, or revoke the registration of any athlete agent or applicant who has defaulted on a repayment or service obligation under any federal family education loan program, the federal Higher Education Act of 1965 (20 U.S.C. § 1001 et seq.), a student loan guaranteed or administered by TSAC, or any other state or federal educational loan or service-conditional scholarship program. Notwithstanding subdivision (b)(1), the secretary of state may elect not to suspend, deny, or revoke the registration of an athlete agent or applicant if the default or delinquency is the result of a medical hardship that prevented the person from working in the person's licensed field and the medical hardship significantly contributed to the default or delinquency. The secretary of state shall accept any determination of default from TSAC or a guarantee agency, after TSAC or the guarantee agency has afforded a debtor an opportunity to be heard in accordance with subdivision (c)(2); and the secretary of state shall rescind any disciplinary action and restore any registration upon receiving notice from TSAC or the guarantee agency that the debtor has agreed to serve the debtor's obligation or is in compliance with an approved repayment plan. Unless a debtor has made satisfactory arrangements according to the lender, TSAC or the guarantee agency, which may include administrative wage garnishment, voluntary payment arrangements, deferment or forbearance, the debtor shall be regarded as delinquent or in default. If a debtor is delinquent or in default on a repayment or service obligation under a guaranteed student loan identified in subsection (b), or the debtor has failed to enter into a payment plan, agreed to a service obligation or complied with a payment plan previously approved by TSAC or the guarantee agency, TSAC or the guarantee agency shall issue to the debtor a notice of intent to file an order with the secretary of state to seek to suspend, deny, or revoke the debtor's registration. The notice shall: Be served upon the debtor personally or by certified mail with return receipt requested; and State that the debtor's registration shall be suspended, denied, or revoked ninety (90) days after service unless within that time the debtor: Pays the entire debt stated in the notice; Enters into a payment plan, service obligation, or complies with a payment plan previously entered into and approved by TSAC or the guarantee agency; Requests and qualifies for deferment, forbearance, or other satisfactory compliance; or Requests a hearing before TSAC or the guarantee agency. The hearing request by the debtor shall be made in writing and must be received by TSAC or the guarantee agency within twenty (20) days of the date the notice is served. TSAC or the guarantee agency, upon receipt of a request for a hearing from the debtor, shall schedule a hearing to determine whether determination of delinquency or default, that could result in suspension, denial, or revocation of the debtor's registration. The debtor's registration may not be suspended, denied, or revoked until a determination is reached following the hearing. The issues that may be determined in the hearing are: The amount of the debt, if any; Whether the debtor is delinquent or in default; Whether the debtor: Has entered into a payment plan or service obligation approved by TSAC or the guarantee agency; Is willing to enter into a payment plan or service obligation approved by TSAC or the guarantee agency; or Is willing to comply with a payment plan or service obligation previously entered into and approved by TSAC or the guarantee agency; Whether the debtor is eligible for deferment, forbearance, or other satisfactory compliance; and Whether the debtor's default or delinquency is the result of a medical hardship that prevented the debtor from working in the debtor's licensed field and the medical hardship significantly contributed to the default or delinquency. If a debtor, without good cause, fails to respond to the notice of intent, fails to timely request a hearing, or fails to appear at a regularly scheduled hearing, the debtor's defenses, objections, or request for a payment plan or compliance with a payment plan may be determined to be without merit; and TSAC or the guarantee agency shall enter a final decision and order, requesting suspension, denial, or revocation and further requesting the secretary of state to order the debtor to refrain from engaging in athlete agent activities. TSAC or the guarantee agency shall send a copy of the order to the secretary of state and the debtor. The administrative hearings under this section shall be conducted in accordance with rules adopted under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. When TSAC or the guarantee agency determines that the debt is paid in full or the debtor has entered into a payment plan, has entered into a service obligation, is otherwise in satisfactory compliance or has complied with a payment plan previously approved by TSAC or the guarantee agency, TSAC or the guarantee agency shall enter an order requesting that the secretary of state terminate the order suspending, denying, or revoking the registration. TSAC or the guarantee agency shall send a copy of the order to the secretary of state and the debtor. Notwithstanding any other law, or rule to the contrary, when the registration is reinstated, the secretary of state shall not impose a reinstatement fee that exceeds fifty dollars ($50.00). Entry of an order seeking to terminate suspension, denial, or revocation of a registration does not limit the ability of TSAC or the guarantee agency to issue a new order which seeks to suspend, deny, or revoke the registration of the same debtor in the event of another delinquency or default. TSAC is authorized to promulgate necessary rules and regulations to effectuate the purposes of this subsection (c). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act. The secretary of state is authorized to promulgate rules to effectuate the purposes of this section. All such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act. Acts 2017, ch. 216, § 1; 2018, ch. 744, §§ 5, 6. Compiler's Notes. Former part 21, §§ 49-7-2101 — 49-7-2123 (Acts 2001, ch. 342, § 1; 2011, ch. 424, §§ 1-11; Acts 2012, ch. 519, § 3; T.C.A., § 49-7-2122 — 49-7-2144 ), concerning the Athlete Agent Reform Act of 2011, was repealed by Acts 2017, ch. 216, § 1 which enacted a new part 21, effective September 1, 2017.