[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: 34CFR674.63] [Page 608-609] TITLE 34--EDUCATION CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION PART 674_FEDERAL PERKINS LOAN PROGRAM--Table of Contents Subpart D_Loan Cancellation Sec. 674.63 Reimbursement to institutions for loan cancellation. (a) Reimbursement for Defense loan cancellation. (1) The Secretary pays an institution each award year its share of the principal and interest canceled under Sec. Sec. 674.55 and 674.59(a). (2) The institution's share of cancelled principal and interest is computed by the following ratio: [GRAPHIC] [TIFF OMITTED] TC15NO91.027 Where I is the institution's capital contribution to the Fund, and F is the Federal capital contribution to the Fund. [[Page 609]] (b) Reimbursement for NDSL and Federal Perkins loan cancellation. The Secretary pays an institution each award year the principal and interest canceled from its student loan fund under Sec. Sec. 674.53, 674.54, 674.56, 674.57, 674.58, 674.59(b), and 674.60. The institution shall deposit this amount in its Fund. (Authority: 20 U.S.C. 428 and 1087ee) [52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994] 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 ---------------------------------------------------------------------------------------------------------------- Installment due dates--Missed payments Separate ------------------------------------------------------------------ monthly Monthly repayment schedule maximum Jan. 2 Feb. 2 Mar. 2 Apr. 2 May 2 June 2 penalty charges ---------------------------------------------------------------------------------------------------------------- 1st Past due installment......... $1 ......... ......... ......... ......... ......... $1 2nd Past due installment......... ......... $1+$2 ......... ......... ......... ......... 3 3rd Past due installment......... ......... ......... $3+$2 ......... ......... ......... 5 4th Past due installment......... ......... ......... ......... $5+$2 ......... ......... 7 5th Past due installment......... ......... ......... ......... ......... $7+$2 ......... 9 6th Past due installment......... ......... ......... ......... ......... ......... $9+$2 11 ------------ Cumulative maximum subtotals. 1 4 9 16 25 36 ........... ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Installment due dates--Missed Separate payments bimonthly Bimonthly repayment schedule --------------------------------- maximum penalty Jan. 2 Mar. 2 May 2 charges ---------------------------------------------------------------------------------------------------------------- 1st Past due installment.......................................... $3 ......... ......... $3 2nd Past due installment.......................................... ......... $3+$3 ......... 6 3rd Past due installment.......................................... ......... ......... $6+$3 9 ------------ Cumulative maximum subtotals.................................. 3 9 18 ........... ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Installment due dates--Missed payments Quarterly repayment schedule -------------------------------------------------- Separate quarterly Jan. 2 Apr. 2 maximum penalty charges ---------------------------------------------------------------------------------------------------------------- 1st Past due installment............. $6 ....................... $6 2nd Past due installment............. ....................... $6+$6 12 -------------------------- Cumulative maximum subtotals..... 6 18 ....................... ---------------------------------------------------------------------------------------------------------------- Note. In the above table of examples, the Cumulative Maximum Subtotal line contains the maximum penalty charges that can be assessed on an NDSL borrower for any given installment that was missed on its due date. For example, if three borrowers, all on different repayment schedules, owed and missed their first installment payment on January 2 and all three made their next payment on April 10, the maximum penalty charges that could be assessed each individual borrower would be as follows: $16 to the monthly repayment schedule borrower; $9 to the bimonthly repayment schedule borrower; and $18 to the quarterly repayment schedule borrower. [46 FR 5241, Jan. 19, 1981]