[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: 34CFR685.306]



[Page 859]

 

                           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 C_Requirements, Standards, and Payments for Direct Loan Program 

                                 Schools

 

Sec. 685.306  Payment of a refund or return of title IV, HEA program 

funds to the Secretary.



    (a) General. By applying for a Direct Loan, a borrower authorizes 

the school to pay directly to the Secretary that portion of a refund or 

return of title IV, HEA program funds from the school that is allocable 

to the loan. A school--

    (1) Shall pay that portion of the student's refund or return of 

title IV, HEA program funds that is allocable to a Direct Loan to the 

Secretary; and

    (2) Shall provide simultaneous writ-ten notice to the borrower if 

the school pays a refund or return of title IV, HEA program funds to the 

Secretary on be-half of that student.

    (b) Determination, allocation, and payment of a refund or return of 

title IV, HEA program funds. In determining the portion of a student's 

refund or return of title IV, HEA program funds that is allocable to a 

Direct Loan, the school shall follow the procedures established in 34 

CFR 668.22 for allocating and paying a refund or return of title IV, HEA 

program funds that is due.



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



[64 FR 59044, Nov. 1, 1999; 65 FR 37045, June 13, 2000]