[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: 34CFR682.301]

[Page 692]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents
 
      Subpart C--Federal Payments of Interest and Special Allowance
 
Sec. 682.301  Eligibility of borrowers for interest benefits on Stafford and Consolidation loans.

    (a) General. (1) To qualify for benefits on a Stafford loan, a 
borrower must demonstrate financial need in accordance with Part F of 
the Act.
    (2) The Secretary considers a member of a religious order, group, 
community, society, agency, or other organization who is pursuing a 
course of study at an institution of higher education to have no 
financial need if that organization--
    (i) Has as its primary objective the promotion of ideals and beliefs 
regarding a Supreme Being;
    (ii) Requires its members to forego monetary or other support 
substantially beyond the support it provides; and
    (iii) (A) Directs the member to pursue the course of study; or
    (B) Provides subsistence support to its members.
    (3) A Consolidation loan borrower qualifies for interest benefits 
during authorized periods of deferment on the portion of the loan that 
does not represent HEAL loans if the loan application was received by 
the lender--
    (i) On or after January 1, 1993 but prior to August 10, 1993;
    (ii) On or after August 10, 1993, but prior to November 13, 1997 if 
the loan consolidates only subsidized Stafford loans; and
    (iii) On or after November 13, 1997, for the portion of the loan 
that repaid subsidized FFEL loans and Direct Subsidized Loans.
    (b) Application for interest benefits. To apply for interest 
benefits on a Stafford loan, the student, or the school at the direction 
of the student, must submit a statement to the lender pursuant to 
Sec. 682.603. The student must qualify for interest benefits if the 
eligible institution has determined and documented the student's amount 
of need for a loan based on the student's estimated cost of attendance, 
estimated financial assistance, and expected family contribution as 
determined under part F of the Act.
    (c) Use of loan proceeds to replace expected family contribution. A 
borrower may use the amount of a PLUS, unsubsidized Stafford loan, State 
sponsored loan, or private program loan obtained for a period of 
enrollment to replace the expected family contribution for that period 
of enrollment.

(Approved by the Office of Management and Budget under control number 
1845-0020)

(Authority: 20 U.S.C. 1078, 1082, 1087-1)

[57 FR 60323, Dec. 18, 1992, as amended at 58 FR 9120, Feb. 19, 1993; 59 
FR 33352, June 28, 1994; 64 FR 18978, Apr. 16, 1999; 64 FR 58959, Nov. 
1, 1999]