[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: 34CFR685.210]



[Page 837]

 

                           TITLE 34--EDUCATION

 

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

 

PART 685_WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents

 

                      Subpart B_Borrower Provisions

 

Sec. 685.210  Choice of repayment plan.



    (a) Initial selection of a repayment plan. (1) Before a Direct Loan 

enters into repayment, the Secretary provides the borrower a description 

of the available repayment plans and requests the borrower to select 

one. A borrower may select a repayment plan before the loan enters 

repayment by notifying the Secretary of the borrower's selection in 

writing.

    (2) If a borrower does not select a repayment plan, the Secretary 

designates the standard repayment plan described in Sec. 685.208(b) for 

the borrower.

    (b) Changing repayment plans. (1) A borrower may change repayment 

plans at any time after the loan has entered repayment by notifying the 

Secretary. However, a borrower who is repaying a defaulted loan under 

the income contingent repayment plan under Sec. 685.211(d)(3)(ii) may 

not change to another repayment plan unless--

    (i) The borrower was required to and did make a payment under the 

income contingent repayment plan in each of the prior three (3) months; 

or

    (ii) The borrower was not required to make payments but made three 

reasonable and affordable payments in each of the prior three months; 

and

    (iii) The borrower makes and the Secretary approves a request to 

change plans.

    (2)(i) A borrower may not change to a repayment plan that has a 

maximum repayment period of less than the number of years the loan has 

already been in repayment, except that a borrower may change to the 

income contingent repayment plan at any time.

    (ii) If a borrower changes plans, the repayment period is the period 

provided under the borrower's new repayment plan, calculated from the 

date the loan initially entered repayment. However, if a borrower 

changes to the income contingent repayment plan, the repayment period is 

calculated as described in Sec. 685.209(c)(4).



(Authority: 20 U.S.C. 1087a et seq.)



[59 FR 61690, Dec. 1, 1994, as amended at 65 FR 65629, Nov. 1, 2000; 68 

FR 75430, Dec. 31, 2003]