[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: 34CFR685.309]



[Page 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. 685.309  Administrative and fiscal control and fund accounting 

requirements for schools participating in the Direct Loan Program.



    (a) General. A participating school shall--

    (1) Establish and maintain proper administrative and fiscal 

procedures and all necessary records as set forth in this part and in 34 

CFR part 668; and

    (2) Submit all reports required by this part and 34 CFR part 668 to 

the Secretary.

    (b) Student status confirmation reports. A school shall--

    (1) Upon receipt of a student status confirmation report from the 

Secretary, complete and return that report to the Secretary within 30 

days of receipt; and

    (2) Unless it expects to submit its next student status confirmation 

report to the Secretary within the next 60 days, notify the Secretary 

within 30 days if it discovers that a Direct Subsidized, Direct 

Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a 

student who--

    (i) Enrolled at that school but has ceased to be enrolled on at 

least a half-time basis;

    (ii) Has been accepted for enrollment at that school but failed to 

enroll on at least a half-time basis for the period for which the loan 

was intended; or

    (iii) Has changed his or her permanent address.

    (3) The Secretary provides student status confirmation reports to a 

school at least semi-annually.

    (4) The Secretary may provide the student status confirmation report 

in either paper or electronic format.

    (c) Record retention requirements. An institution shall follow the 

record retention and examination requirements in this part and in 34 CFR 

668.24.

    (d) Accounting requirements. A school shall follow accounting 

requirements in 34 CFR 668.24(b).

    (e) Direct Loan Program bank account. Schools shall follow the 

procedures for maintaining funds established in 34 CFR 668.163.

    (f) Division of functions. Schools shall follow the procedures for 

division of functions in 34 CFR 668.16(c).

    (g) Limit on use of funds. Except for funds paid to a school under 

section 452(b)(1) of the Act, funds received by a school under this part 

may be used only to make Direct Loans to eligible borrowers and may not 

be used or hypothecated for any other purpose.



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

1840-0672)



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



[59 FR 61690, Dec. 1, 1994, as amended at 60 FR 33345, June 28, 1995; 61 

FR 60493, Nov. 27, 1996; 61 FR 60610, Nov. 29, 1996]