[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: 34CFR674.9] [Page 565-567] 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. 674.9 Student eligibility. A student at an institution of higher education is eligible to receive a loan under the Federal Perkins Loan program for an award year if the student-- (a) Meets the relevant eligibility requirements contained in 34 CFR 668.32; (b) Is enrolled or accepted for enrollment as an undergraduate, graduate, or [[Page 566]] professional student at the institution, whether or not engaged in a program of study abroad approved for credit by the home institution; (c) Has financial need as determined in accordance with part F of title IV of the HEA. A member of a religious order (an order, community, society, agency, or organization) who is pursuing a course of study at an institution of higher education is considered to have no financial need if that religious order- (1) Has as its primary objective the promotion of ideals and beliefs regarding a Supreme Being; (2) Requires its members to forego monetary or other support substantially beyond the support it provides; and (3) Directs the member to pursue the course of study or provides subsistence support to its members; (d) Has received for that award year, if an undergraduate student-- (1) A SAR as a result of applying for a grant under the Federal Pell Grant Program; or (2) A preliminary determination of eligibility or ineligibility for a Federal Pell Grant by the institution's financial aid administrator after applying for a SAR with a Federal Pell Grant Processor; (e) Is willing to repay the loan. Failure to meet payment obligations on a previous loan is evidence that the student is unwilling to repay the loan; (f) Provides to the institution a driver's license number, if any, at the time of application for the loan; (g)(1) In the case of a borrower whose prior loan under title IV of the Act was discharged after a final determination of total and permanent disability, obtains a certification from a physician that the borrower is able to engage in substantial gainful activity; (2) Signs a statement acknowledging that any new Federal Perkins or NDSL the borrower received cannot be discharged in the future on the basis of any present impairment, unless that condition substantially deteriorates; and (3) In the case of a borrower whose previous loan under title IV of the HEA was discharged due to a total and permanent disability on or after July 1, 2001 and before July 1, 2002, meets the requirements of (g)(1) and (g)(2) of this section. If the borrower applies for another loan within three years from the date the borrower became totally and permanently disabled, as certified by the physician, the borrower must reaffirm the previously discharged loan before receiving the new loan; and (h) In the case of a borrower whose previous loan under title IV of the HEA was conditionally discharged based on an initial determination that the borrower was totally and permanently disabled, the borrower must-- (1) Comply with the requirements of paragraphs (h)(1) and (h)(2) of this section; and (2) Sign a statement acknowledging that-- (i) The loan that has been conditionally discharged prior to a final determination of total and permanent disability cannot be discharged in the future on the basis of any impairment present when the borrower applied for a total and permanent disability discharge or when a new loan is made, unless that impairment substantially deteriorates; and (ii) Collection activity will resume on any loan in a conditional discharge period, as described in Sec. 674.61(b)(9). (i) Does not have any loans under title IV of the HEA on which collection activity has been suspended based on a conditional determination that the borrower was totally and permanently disabled. If a borrower applies for a loan under title IV of the HEA during the conditional discharge period described in Sec. Sec. 674.61(b), 682.402(c), or 685.213(a), the suspension of collection activity must be ended before the borrower becomes eligible to receive any additional loans. (j) In the case of a borrower who is in default on a Federal Perkins Loan, NDSL or Defense loan, satisfies one of the conditions contained in Sec. 674.5(c)(3)(i) or (ii) except that-- (1) For purposes of this section, voluntary payments made by the borrower under paragraph (i) of this section are those payments made directly by the borrower; and (2) Voluntary payments do not include payments obtained by Federal [[Page 567]] offset, garnishment, or income or asset execution. (k) For purposes of this section, reaffirmation means the acknowledgment of the loan by the borrower in a legally binding manner. The acknowledgement may include, but is not limited to, the borrower-- (1) Signing a new promissory note or new repayment agreement; or (2) Making a payment on the loan. (Authority: 20 U.S.C. 1087aa, 1087dd, and 1091) [52 FR 45747, Dec. 1, 1987, as amended at 59 FR 61407, 61415-61416, Nov. 30, 1994; 60 FR 34167, June 30, 1995; 62 FR 50847, Sept. 26, 1997; 64 FR 58309, Oct. 28, 1999; 65 FR 65690, Nov. 1, 2000; 66 FR 44006, Aug. 21, 2001; 67 FR 67076, Nov. 1, 2002]