(1) The department will conduct annual monitoring activities for ongoing eligibility verification and program compliance.

(2) Annual monitoring activities will be documented on reports established by department staff and stored at the department for the duration of the loan assistance plus five years.

(3) Disbursements may be made by the department directly to the educational loan servicer or provided to the recipient on a reimbursement basis provided verified loan statements indicating full and timely payments are made available to the department.