(1) Participating postsecondary institutions must renew eligibility annually, or as required by the office, by:

(a) Participating in a fully certified status in the federal Title IV student financial aid programs including, at a minimum, the Federal Pell Grant program. Institutions not participating in a fully certified status will be evaluated on a case-by-case basis for continued participation and may have additional conditions imposed by the office in order to maintain their participation in state financial aid programs.

(b) Demonstrating an ongoing capacity to properly administer state financial aid programs including ensuring adequate staffing, proper training, and the maintenance of electronic systems sufficient to comply with program tracking, payment requests, and reporting obligations.

(c) Verifying continued institutional compliance with state financial aid requirements on awarding, conditions of award, satisfactory academic progress, repayment, student maintenance budgets, and such other areas as necessary to assure proper administration of the programs. The office will analyze these policies and may require adjustments to achieve consistent treatment of students in similar circumstances across campuses and support student success.

(d) Private institutions must submit their audited financial statements and federal financial aid compliance audits on an annual basis.

(e) Private nonprofit institutions with less than five years of continuous successful participation in state financial aid programs, Western Governors University - Washington as established under RCW 28B.77.240, and all participating private for-profit institutions, must submit performance measure information as listed under WAC 250-21-021 (1)(b) on an annual basis, or as directed by the office.

(f) Signing an "agreement to participate" that affirms the institution's agreement to abide by all program rules, regulations, and guidelines, to maintain and provide all pertinent information, records, and reports requested by the office and to notify the office within thirty days of any change to information reported on the agreement form including, but not limited to, material changes to the institution's Title IV participation status, accreditation status, locations, contact information, or affiliated third-party servicers.

(g) Notifying the office within thirty days of transactions considered a change of ownership or majority control including, but not limited to:

(i) Sale of the institution;

(ii) Transfer of the controlling interest of stock of the institution or its parent corporation;

(iii) Merger of two or more institutions; and

(iv) Division of one institution into two or more institutions.

(2) If evaluation of administrative capability, performance measures, financial strength, participation status and performance in Title IV programs, accreditation status, or changes in ownership or majority control result in concerns about an institution's participation in state financial aid programs, the office may act in accordance with WAC 250-21-081. If an institution disputes actions taken by the office, the institution may appeal per the procedure outlined in WAC 250-21-091.

(3) Nothing in this section shall prevent the office, in the exercise of its sound discretion, from terminating the participation of an institution which the office determines is unable to properly administer state financial aid programs or provide advertised services to its students.