[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR30.70]



[Page 58-59]

 

                           TITLE 34--EDUCATION

 

PART 30_DEBT COLLECTION--Table of Contents

 

  Subpart F_What Requirements Apply to the Compromise of a Debt or the 

             Suspension or Termination of Collection Action?

 

Sec.  30.70  How does the Secretary exercise discretion to compromise 

a debt or to suspend or terminate collection of a debt?





    (a) The Secretary uses the standards in the FCCS, 4 CFR part 103, to 

determine whether compromise of a debt is appropriate if--

    (1) The debt must be referred to the Department of Justice under 

this section; or

    (2) The amount of the debt is less than or equal to $20,000 and the 

Secretary does not follow the procedures in paragraph (e) of this 

section.

    (b) The Secretary refers a debt to the Department of Justice to 

decide whether to compromise a debt if--

    (1) The debt was incurred under a program or activity subject to 

section 452(f) of the General Education Provisions Act and the initial 

determination of the debt was more than $50,000; or

    (2) The debt was incurred under a program or activity not subject to 

section 452(f) of the General Education Provisions Act and the amount of 

the debt is more than $20,000.

    (c) The Secretary may compromise the debt under the procedures in 

paragraph (e) of this section if--

    (1) The debt was incurred under a program or activity subject to 

section 452(f) of the General Education Provisions Act; and

    (2) The initial determination of the debt was less than or equal to 

$50,000.

    (d) The Secretary may compromise a debt without following the 

procedure in paragraph (e) of this section if the amount of the debt is 

less than or equal to $20,000.

    (e) The Secretary may compromise the debt pursuant to paragraph (c) 

of this section if--

    (1) The Secretary determines that--

    (i) Collection of any or all of the debt would not be practical or 

in the public interest; and

    (ii) The practice that resulted in the debt has been corrected and 

will not recur;

    (2) At least 45 days before compromising the debt, the Secretary 

publishes a notice in the Federal Register stating--

    (i) The Secretary's intent to compromise the debt; and

    (ii) That interested persons may comment on the proposed compromise; 

and

    (3) The Secretary considers any comments received in response to the 

Federal Register notice before finally compromising the debt.

    (f)(1) The Secretary uses the standards in the FCCS, 4 CFR part 104, 

to determine whether suspension or termination of collection action is 

appropriate.

    (2) The Secretary--

    (i) Refers the debt to the Department of Justice to decide whether 

to suspend or terminate collection action if the amount of the debt at 

the time of the referral is more than $20,000; or

    (ii) May decide to suspend or terminate collection action if the 

amount of the debt at the time of the Secretary's decision is less than 

or equal to $20,000.

    (g) In determining the amount of a debt under paragraphs (a) through 

(f) of this section, the Secretary excludes interest, penalties, and 

administrative costs.

    (h) Notwithstanding paragraphs (b) through (f) of this section, the 

Secretary may compromise a debt, or suspend or terminate collection of a 

debt, in any amount if the debt arises under the Guaranteed Student Loan 

Program authorized under title IV, part B, of the Higher Education Act 

of 1965, as amended, or the Perkins Loan Program authorized under title 

IV, part E, of the Higher Education Act of 1965, as amended.

    (i) The Secretary refers a debt to the General Accounting Office 

(GAO) for review and approval before referring the debt to the 

Department of Justice for litigation if--

    (1) The debt arose from an audit exception taken by GAO to a payment 

made by the Department; and

    (2) The GAO has not granted an exception from the GAO referral 

requirement.

    (j) Nothing in this section precludes--

    (1) A contracting officer from exercising his authority under 

applicable



[[Page 59]]



statutes, regulations, or common law to settle disputed claims relating 

to a contract; or

    (2) The Secretary from redetermining a claim.



(Authority: 20 U.S.C. 1082(a) (5) and (6), 1087hh, 1221e-3(a)(1), 1226a-

1, and 1234a(f), 31 U.S.C. 3711(e))



[53 FR 33425, Aug. 30, 1988]



Subpart G [Reserved]