[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: 34CFR685.306]

[Page 869]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents
 
Subpart C--Requirements, Standards, and Payments for Direct Loan Program 
                                 Schools
 
Sec. 685.306  Payment of a refund or return of title IV, HEA program funds to the Secretary.

    (a) General. By applying for a Direct Loan, a borrower authorizes 
the school to pay directly to the Secretary that portion of a refund or 
return of title IV, HEA program funds from the school that is allocable 
to the loan. A school--
    (1) Shall pay that portion of the student's refund or return of 
title IV, HEA program funds that is allocable to a Direct Loan to the 
Secretary; and
    (2) Shall provide simultaneous writ-ten notice to the borrower if 
the school pays a refund or return of title IV, HEA program funds to the 
Secretary on be-half of that student.
    (b) Determination, allocation, and payment of a refund or return of 
title IV, HEA program funds. In determining the portion of a student's 
refund or return of title IV, HEA program funds that is allocable to a 
Direct Loan, the school shall follow the procedures established in 34 
CFR 668.22 for allocating and paying a refund or return of title IV, HEA 
program funds that is due.

(Authority: 20 U.S.C. 1087a et seq.)

[64 FR 59044, Nov. 1, 1999; 65 FR 37045, June 13, 2000]