[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: 34CFR674.44]



[Page 591]

 

                           TITLE 34--EDUCATION

 

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

 

PART 674_FEDERAL PERKINS LOAN PROGRAM--Table of Contents

 

                         Subpart C_Due Diligence

 

Sec. 674.44  Address searches.



    (a) If mail, other than unclaimed mail, sent to a borrower is 

returned undelivered, an institution shall take steps to locate the 

borrower. These steps must include--

    (1) Reviews of records in all appropriate institutional offices;

    (2) Reviews of telephone directories or inquiries of information 

operators in the locale of the borrower's last known address; and

    (3) If, after following the procedures in paragraph (a) of this 

section, an institution is still unable to locate a borrower, the 

institution may use the Internal Revenue Service skip-tracing service.

    (b) If an institution is unable to locate a borrower by the means 

described in paragraph (a) of this section, it shall--

    (1) Use its own personnel to attempt to locate the borrower, 

employing and documenting efforts comparable to commonly accepted 

commercial skip-tracing practices; or

    (2) Refer the account to a firm that provides commercial skip-

tracing services.

    (c) If the institution acquires the borrower's address or telephone 

number through the efforts described in this section, it shall use that 

new information to continue its efforts to collect on that borrower's 

account in accordance with the requirements of this subpart.

    (d) If the institution is unable to locate the borrower after 

following the procedures in paragraphs (a) and (b) of this section, the 

institution shall make reasonable attempts to locate the borrower at 

least twice a year until--

    (1) The loan is recovered through litigation;

    (2) The account is assigned to the United States; or

    (3) The account is written off under Sec. 674.47(g).



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



[52 FR 45555, Nov. 30, 1987, as amended at 59 FR 61412, Nov. 30, 1994]