[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR654.52]

[Page 361]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 654--ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM--Table of Contents
 
       Subpart F--How Does a Scholar Receive Scholarship Payments?
 
Sec. 654.52  What are the consequences of a scholar's failure to meet the eligibility criteria?

    (a)(1) An SEA may permit a scholar to postpone or interrupt his or 
her enrollment at an institution of higher education without forfeiting 
his or her scholarship for up to 12 months, beginning on the date the 
scholar otherwise would have enrolled in the institution after the SEA 
awarded his or her scholarship or the date the scholar interrupts 
enrollment.
    (2) A scholar who postpones or interrupts his or her enrollment at 
an institution of higher education in accordance with standards 
established by the SEA is not eligible to receive scholarship funds 
during the period of postponement or interruption, but is eligible to 
receive scholarship payments on enrollment or re-enrollment at an 
institution of higher education.
    (3) A scholar's periods of postponement or interruption, taken in 
accordance with standards established by the SEA and not in excess of 12 
months, are not considered periods of suspension for the purposes of 
calculating the 12 months provided for suspension prior to termination 
under paragraph (b)(2) of this section.
    (b)(1) Except as provided in paragraph (a) of this section, if an 
SEA finds that a scholar fails to meet the requirements of Sec. 654.51 
within an award year, it shall suspend the scholar's eligibility to 
receive scholarship funds until the scholar is able to demonstrate to 
the satisfaction of the SEA that he or she meets these requirements.
    (2) Except as provided in paragraph (b)(3) of this section, a 
scholar's eligibility for a scholarship is terminated when the total of 
his or her suspension periods exceeds 12 months.
    (3) In exceptional circumstances, the SEA may extend the 12-month 
suspension period without terminating a scholar's eligibility under 
paragraph (b)(2) of this section, in accordance with standards 
established by the SEA.
    (c) A scholar who receives an award for a period for which the SEA 
subsequently determines the scholar was ineligible under the 
requirements in Sec. 654.40 or 654.51 shall repay to the SEA the total 
amount of the scholarship funds received for the period during which he 
or she was ineligible.

(Authority: 20 U.S.C. 1070d-35, 1070d-36 to 1070d-38)