281—56.25 (259) Exceptions to payment for services. As required by the Act and 34 CFR 361.50(c), the division shall have a method of allowing for exceptions to its rules regarding payment for services.
	 56.25(1) Reasons for exceptions. Major reasons that will be considered in determining if an exception should be granted in favor of an applicant include, but are not limited to, the following:
	  a.   	 The need is disability-related.
	  b.   	 The applicant has used all sources available, such as applying for and using all available loans in postsecondary training situations.
	  c.   	 Family issues, such as dissolution of marriage, loss of income, or estrangement, render resources unavailable.
	  d.   	 Academic performance is poor, but could reasonably be expected to return to the required threshold in one semester.
	  e.   	 Documented evidence supports that the client is in the process of repaying a previously defaulted student loan.
	 56.25(2) Prohibitions. Pursuant to federal law, the division is subject to the following prohibitions:
	  a.   	 The fee schedule shall not be designed in a way that effectively denies an individual a necessary service.
	  b.   	 An absolute dollar limit on specific service categories or on the total services provided to an individual may not be established.
	 56.25(3) Exception process. A request for an exception shall originate with a counselor, who shall either develop a case note detailing the reason(s) why an exception is believed to be warranted or complete the appropriate form. The case note or form shall be presented to a supervisor for determination. The supervisor’s determination shall be documented by the supervisor in a separate case note or in the designated place on the form.