An institution whose participation has been terminated may file a request for reinstatement as an eligible institution. However, this request may not be made before the end of the twenty-fourth (24th) month after the effective date of the termination. The reinstatement request shall be in writing and shall state and substantiate that the institution has corrected the violation(s) on which its termination was based including payment in full to the CELP Official of all funds due the California Student Aid Commission, or to designated recipients, that the institution improperly received, withheld, disbursed, or caused to be disbursed, subject to independent review by the CELP Official.

The institution must meet all eligibility requirements for participation in the CELP, upon reinstatement after termination. An institution's application for reinstatement shall include an acceptable plan which indicates that its participation in the CELP will not result in further violations by it or the requirements of the programs. If a school, which is also a lender, was terminated as both a participating school and a lender, the school cannot be reinstated as a lender until it is reinstated as a participating school for a period of at least twelve (12) months.

The CELP Official will not grant reinstatement to an institution if it is owned, in whole or in part, directly or indirectly, by any person who has been convicted of a crime related to the abuse of any State or Federal Title IV financial aid program or if it continues to employ any individual who was shown to be an incompetent administrator during the termination proceeding or who was convicted of a crime related to the abuse of any State or Federal Title IV financial aid programs.

Within sixty (60) days of receiving a reinstatement request, the CELP Official will notify the institution in writing by certified mail (return receipt requested) of the decision to grant the request, deny the request, or grant the request subject to limitation. If a request for reinstatement is denied, the institution may again request reinstatement twelve (12) months after the date of the most recent request.