[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: 34CFR674.1] [Page 560-561] TITLE 34--EDUCATION CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION PART 674_FEDERAL PERKINS LOAN PROGRAM--Table of Contents Subpart A_General Provisions Sec. 674.1 Purpose and identification of common provisions. Note: An asterisk (*) indicates provisions that are common to parts 674, 675, and 676. The use of asterisks will assure participating institutions that a provision of one regulation is identical to the corresponding provisions in the other two. Subpart A_General Provisions Sec. 674.1 Purpose and identification of common provisions. 674.2 Definitions. 674.3-674.4 [Reserved] 674.5 Federal Perkins Loan program cohort default rate and penalties. 674.6-674.7 [Reserved] 674.8 Program participation agreement. 674.9 Student eligibility. 674.10 Selection of students for loans. 674.11 [Reserved] 674.12 Loan maximums. 674.13 Reimbursement to the Fund. 674.14-674.15 [Reserved] 674.16 Making and disbursing loans. 674.17 Federal interest in allocated funds--transfer of Fund. 674.18 Use of funds. 674.19 Fiscal procedures and records. 674.20 Compliance with equal credit opportunity requirements. Subpart B_Terms of Loans 674.31 Promissory note. 674.32 Special terms: loans to less than half-time student borrowers. 674.33 Repayment. 674.34 Deferment of repayment--Federal Perkins loans, NDSLs and Defense loans. 674.35 Deferment of repayment--Federal Perkins loans made before July 1, 1993. 674.36 Deferment of repayment--NDSLs made on or after October 1, 1980, but before July 1, 1993. 674.37 Deferment of repayment--NDSLs made before October 1, 1980 and Defense loans. 674.38 Deferment procedures. 674.39 Loan rehabilitation. 674.40 Treatment of loan repayments where cancellation, loan repayments, and minimum monthly repayments apply. Subpart C_Due Diligence 674.41 Due diligence--general requirements. 674.42 Contact with the borrower. 674.43 Billing procedures. 674.44 Address searches. 674.45 Collection procedures. 674.46 Litigation procedures. 674.47 Costs chargeable to the Fund. 674.48 Use of contractors to perform billing and collection or other program activities. 674.49 Bankruptcy of borrower. 674.50 Assignment of defaulted loans to the United States. Subpart D_Loan Cancellation 674.51 Special definitions. 674.52 Cancellation procedures. 674.53 Teacher cancellation--Federal Perkins, NDSL and Defense loans. 674.54 [Reserved] 674.55 Teacher cancellation--Defense loans. 674.56 Employment cancellation--Federal Perkins, NDSL and Defense loans. 674.57 Cancellation for law enforcement or corrections officer service-- Federal Perkins, NDSL and Defense loans. 674.58 Cancellation for service in a Head Start program. 674.59 Cancellation for military service. 674.60 Cancellation for volunteer service--Perkins loans, NDSLs and Defense loans. 674.61 Discharge for death or disability. 674.62 No cancellation for prior service--no repayment refunded. 674.63 Reimbursement to institutions for loan cancellation. Appendixes A-D to Part 674 [Reserved] Appendix E to Part 674--Examples for Computing Maximum Penalty Charges (6 Months Unpaid Overdue Payments) on Direct Loans Made for Periods of Enrollment before January 1, 1986 Authority: 20 U.S.C. 1087aa-1087hh and 20 U.S.C. 421-429 unless otherwise noted. Editorial Note: Nomenclature changes to part 674 appear at 65 FR 18002, 18003, Apr. 6, 2000. Source: 52 FR 45747, Dec. 1, 1987, unless otherwise noted. (a) The Federal Perkins Loan Program provides low-interest loans to financially needy students attending institutions of higher education to help them pay their educational costs. (b)(1) The Federal Perkins Loan Program, authorized by title IV-E of the Higher Education Act of 1965, as amended, and previously named the National Direct Student Loan (NDSL) Program, is a continuation of the National Defense Loan Program authorized by title II of the National Defense [[Page 561]] Education Act of 1958. All rights, privileges, duties, functions, and obligations existing under title II before the enactment of title IV-E continue to exist. (2) The Secretary considers any student loan fund established under title IV-E to include the assets of an institution's student loan fund established under title II. *(c) Provisions in these regulations that are common to all campus- based programs are identified with an asterisk. (d) Provisions in these regulations that refer to ``loans'' or ``student loans'' apply to all loans made under title IV-E of the HEA or title II of the National Defense Education Act. (Authority: 20 U.S.C. 1087aa-1087hh; Pub. L. 92-318, sec. 137(d)(1)) [52 FR 45747, Dec. 1, 1987, as amended at 57 FR 32344, July 21, 1992; 59 FR 61415, Nov. 29, 1994; 64 FR 18002, Apr. 6, 2000]