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Code of Federal Regulations Title 34. Education § 34.682.607 Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) General. By applying for a FFEL loan, a borrower authorizes the school to pay directly to the lender that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan upon the borrower's withdrawal. A school—

(1) Must pay that portion of the student's refund or return of title IV, HEA program funds that is allocable to a FFEL loan to—

(i) The original lender;  or

(ii) A subsequent holder, if the loan has been transferred and the school knows the new holder's identity;  and

(2) Must provide simultaneous written notice to the borrower if the school makes a payment of a refund or a return of title IV, HEA program funds to a lender on behalf of that student.

(b) Allocation of a refund or returned title IV, HEA program funds. In determining the portion of a refund or the return of title IV, HEA program funds upon a student's withdrawal for an academic period that is allocable to a FFEL loan received by the borrower for that academic period, the school must follow the procedures established in part 668 for allocating a refund or return of title IV, HEA program funds.

(c) Timely payment. A school must pay a refund or a return of title IV, HEA program funds that is due in accordance with the timeframe in § 668.22(j).

(Authority:  20 U.S.C. 1077, 1078, 1078–1, 1078–2, 1082, 1094)

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Cite this article: FindLaw.com - Code of Federal Regulations Title 34. Education § 34.682.607 Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-34-education/cfr-sect-34-682-607/

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