[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR674.41]

[Page 601]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 674--FEDERAL PERKINS LOAN PROGRAM--Table of Contents
 
                        Subpart C--Due Diligence
 
Sec. 674.41  Due diligence--general requirements.

    Source: 52 FR 45555, Nov. 30, 1987, unless otherwise noted.


    (a) General. Each institution shall exercise due diligence in 
collecting loans by complying with the provisions in this subpart. In 
exercising this responsibility, each institution shall, in addition to 
complying with the specific provisions of this subpart--
    (1) Keep the borrower informed, on a timely basis, of all changes in 
the program that affect his or her rights or responsibilities; and
    (2) Respond promptly to all inquiries from the borrower.
    (3) Provide the borrower with information on the availability of the 
Student Loan Ombudsman's office if the borrower disputes the terms of 
the loan in writing and the institution does not resolve the dispute.
    (b) Coordination of information. An institution shall ensure that 
information available in its offices (including the admissions, 
business, alumni, placement, financial aid and registrar's offices) is 
provided to those offices responsible for billing and collecting loans, 
in a timely manner, as needed to determine--
    (1) The enrollment status of the borrower;
    (2) The expected graduation or termination date of the borrower;
    (3) The date the borrower withdraws, is expelled or ceases 
enrollment on at least a half-time basis; and
    (4) The current name, address, telephone number and Social Security 
number of the borrower.

(Approved by the Office of Management and Budget under control number 
1845-0023)

(Authority: 20 U.S.C. 424, 1087cc)

[52 FR 45555, Nov. 30, 1987, as amended at 59 FR 61411, Nov. 30, 1994; 
64 FR 58312, Oct. 28, 1999]