[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: 34CFR682.301]



[Page 682-683]

 

                           TITLE 34--EDUCATION

 

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

 

PART 682_FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents

 

      Subpart C_Federal Payments of Interest and Special Allowance

 

Sec. 682.301  Eligibility of borrowers for interest benefits on Stafford 

and Consolidation loans.



    (a) General. (1) To qualify for benefits on a Stafford loan, a 

borrower must demonstrate financial need in accordance with Part F of 

the Act.

    (2) The Secretary considers a member of a religious order, group, 

community, society, agency, or other organization who is pursuing a 

course of study at an institution of higher education to have no 

financial need if that organization--

    (i) Has as its primary objective the promotion of ideals and beliefs 

regarding a Supreme Being;

    (ii) Requires its members to forego monetary or other support 

substantially beyond the support it provides; and

    (iii) (A) Directs the member to pursue the course of study; or

    (B) Provides subsistence support to its members.

    (3) A Consolidation loan borrower qualifies for interest benefits 

during authorized periods of deferment on the portion of the loan that 

does not represent HEAL loans if the loan application was received by 

the lender--

    (i) On or after January 1, 1993 but prior to August 10, 1993;

    (ii) On or after August 10, 1993, but prior to November 13, 1997 if 

the loan consolidates only subsidized Stafford loans; and

    (iii) On or after November 13, 1997, for the portion of the loan 

that repaid subsidized FFEL loans and Direct Subsidized Loans.

    (b) Application for interest benefits. To apply for interest 

benefits on a Stafford loan, the student, or the school at the direction 

of the student, must submit a statement to the lender pursuant to Sec. 

682.603. The student must qualify for interest benefits if the eligible 

institution has determined and documented the student's amount of need



[[Page 683]]



for a loan based on the student's estimated cost of attendance, 

estimated financial assistance, and expected family contribution as 

determined under part F of the Act.

    (c) Use of loan proceeds to replace expected family contribution. A 

borrower may use the amount of a PLUS, unsubsidized Stafford loan, State 

sponsored loan, or private program loan obtained for a period of 

enrollment to replace the expected family contribution for that period 

of enrollment.



(Approved by the Office of Management and Budget under control number 

1845-0020)



(Authority: 20 U.S.C. 1078, 1082, 1087-1)



[57 FR 60323, Dec. 18, 1992, as amended at 58 FR 9120, Feb. 19, 1993; 59 

FR 33352, June 28, 1994; 64 FR 18978, Apr. 16, 1999; 64 FR 58959, Nov. 

1, 1999]