[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: 34CFR685.308]



[Page 859-860]

 

                           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. 685.308  Remedial actions.



    (a) General. The Secretary may require the repayment of funds and 

the purchase of loans by the school if the Secretary determines that the 

unenforceability of a loan or loans, or the disbursement of loan amounts 

for which the borrower was ineligible, resulted in whole or in part 

from--

    (1) The school's violation of a Federal statute or regulation; or

    (2) The school's negligent or willful false certification.

    (b) In requiring a school to repay funds to the Secretary or to 

purchase loans from the Secretary in connection with an audit or program 

review, the Secretary follows the procedures described in 34 CFR part 

668, subpart H.

    (c) The Secretary may impose a fine or take an emergency action 

against a school or limit, suspend, or terminate a school's 

participation in the Direct



[[Page 860]]



Loan Program in accordance with 34 CFR part 668, subpart G.



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