[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR668.60]



[Page 470-471]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 668_STUDENT ASSISTANCE GENERAL PROVISIONS--Table of Contents

 

      Subpart E_Verification of Student Aid Application Information

 

Sec. 668.60  Deadlines for submitting documentation and the consequences 

of failing to provide documentation.



    (a) An institution shall require an applicant selected for 

verification to submit to it, within the period of time it or the 

Secretary specifies, the documents set forth in Sec. 668.57 that are 

requested by the institution or the Secretary.

    (b) For purposes of the campus-based, Federal Stafford Loan, Federal 

Direct Stafford/Ford Loan programs--

    (1) If an applicant fails to provide the requested documentation 

within a reasonable time period established by the institution or by the 

Secretary--

    (i) The institution may not--

    (A) Disburse any additional Federal Perkins Loan, FSEOG or funds to 

the applicant;

    (B) Continue to employ or allow an employer to employ the applicant 

under FWS;

    (C) Certify the applicant's Federal Stafford Loan application or 

originate the applicant's Direct Subsidized Loan; or

    (D) Process Federal Stafford Loan or Direct Subsidized Loan Direct 

Loan proceeds for the applicant;

    (ii) The institution shall return to the lender, or to the 

Secretary, in the case of a Direct Subsidized Loan, any Federal Stafford 

Loan or Direct Subsidized Loan proceeds that otherwise would be payable 

to the applicant; and

    (iii) The applicant shall repay to the institution any Federal 

Perkins Loan, FSEOG, or payments received for that award year;

    (2) If the applicant provides the requested documentation after the 

time period established by the institution, the institution may, at its 

option, award aid to the applicant notwithstanding paragraph (b)(1)(i) 

of this section; and



[[Page 471]]



    (3) An institution may not withhold any Federal Stafford Loan 

proceeds from an applicant under paragraph (b)(1)(i)(D) of this section 

for more than 45 days. If the applicant does not complete verification 

within the 45-day period, the institution shall return the Federal 

Stafford Loan proceeds to the lender.

    (c) For purposes of the Federal Pell Grant Program--

    (1) An applicant may submit a verified SAR to the institution or the 

institution may receive a verified ISIR after the applicable deadline 

specified in 34 CFR 690.61 but within an established additional time 

period set by the Secretary through publication of a notice in the 

Federal Register. If the institution receives a verified SAR or ISIR 

during the established additional time period, and the EFC on the two 

SARs or ISIRs are different, payment must be based on the higher of the 

two EFCs.

    (2) If the applicant does not provide to the institution the 

requested documentation and, if necessary, a verified SAR or the 

institution does not receive a verified ISIR, within the additional time 

period referenced in paragraph (c)(1) of this section, the applicant--

    (i) Forfeits the Federal Pell Grant for the award year; and

    (ii) Shall return any Federal Pell Grant payments previously 

received for that award year to the Secretary.

    (d) The Secretary may determine not to process any subsequent 

application for Federal Pell Grant, and an institution, if directed by 

the Secretary, may not process any subsequent application for campus-

based, Federal Direct Stafford/Ford Loan, or Federal Stafford Loan 

program assistance of an applicant who has been requested to provide 

documentation until the applicant provides the documentation or the 

Secretary decides that there is no longer a need for the documentation.

    (e) If an applicant selected for verification for an award year dies 

before the deadline for completing the verification process without 

completing that process, and the deadline is in the subsequent award 

year, the institution may not--

    (1) Make any further disbursements on behalf of that applicant;

    (2) Certify that applicant's Federal Stafford Loan application, 

originate that applicant's Direct Subsidized Loan, or process that 

applicant's Federal Stafford Loan or Direct Subsidized Loan proceeds; or

    (3) Consider any funds it disbursed to that applicant under Sec. 

668.58(a)(2) as an overpayment.



(Authority: 20 U.S.C. 1094)



[56 FR 61337, Dec. 2, 1991, as amended at 59 FR 22068, Apr. 28, 1994; 59 

FR 61207, Nov. 29, 1994; 63 FR 40625, July 29, 1998]