[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR60.52]



[Page 344-345]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 60_HEALTH EDUCATION ASSISTANCE LOAN PROGRAM--Table of Contents

 

                          Subpart E_The School

 

Sec. 60.52  The student's loan check.



    (a) When a school receives from a HEAL lender a loan disbursement



[[Page 345]]



check or draft payable jointly to the school and to one of its students, 

it must:

    (1) If the school receives the instrument after the student is 

enrolled, obtain the student's endorsement, retain that portion of funds 

due the school, and disburse the remaining funds to the student.

    (2) If the school receives the instrument before the student is 

enrolled, it must, prior to endorsing the instrument, send the 

instrument to the student to endorse and return to the school. The 

school may then retain that portion of funds then due the school but 

must hold the remaining funds for disbursement to the student at the 

time of enrollment. However, if the student is unable to meet other 

educational expenses due before the time of enrollment, the school may 

obtain the student's endorsement and disburse to the student that 

portion of funds required to meet these other educational expenses.

    (b) If a school determines that a student does not plan to enroll, 

the school must return a loan disbursement check or draft to the lender 

within 30 days of this determination.



[48 FR 38988, Aug. 26, 1983, as amended at 52 FR 751, Jan. 8, 1987]