[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: 34CFR31.5]



[Page 61-63]

 

                           TITLE 34--EDUCATION

 

PART 31_SALARY OFFSET FOR FEDERAL EMPLOYEES WHO ARE INDEBTED TO THE 

UNITED STATES UNDER PROGRAMS ADMINISTERED BY THE SECRETARY OF EDUCATION

--Table of Contents

 

Sec.  31.5  Request for hearing on the debt or the proposed offset.



    (a) Deadlines. (1) The Secretary provides a hearing before offset on 

the existence, amount, or enforceability of the debt described in the 

pre-offset notice provided under Sec.  31.3, or on the amount or 

frequency of the offsets as proposed in that notice, if the employee--

    (i) Files a request for the hearing within the later of--

    (A) 65 days after the date of the pre-offset notice provided under 

Sec.  31.3; or

    (B) 15 days after the date on which the Secretary makes available to 

the employee the relevant, requested documents if the employee had 

requested an opportunity to inspect and copy documents within 20 days of 

the date of the pre-offset notice provided under Sec.  31.3; and

    (ii) Files a request at the address specified in that notice.

    (2) The Secretary provides a hearing upon request by the employee. 

However, if the employee does not submit, within the deadlines in 

paragraph (a)(1) of this section, a request that meets the requirements 

of paragraphs (b) and (c) of this section, the Secretary does not delay 

the start of an offset, or suspend an offset already commenced, unless 

the employee submits evidence satisfactory to the Secretary that the 

request was not made in a timely manner because the employee did not 

have notice of the proposed offset, or was otherwise prevented from 

making the request by factors beyond his or her control, until after the 

deadlines had passed.

    (b) Contents of request for a hearing. A request for a hearing must 

contain--

    (1) All information provided to the employee in the pre-offset 

notice under Sec.  31.3 that identifies the employee and the particular 

debt, including the employee's Social Security number and the program 

under which the debt arose, together with any corrections needed with 

regard to that identifying information;

    (2) An explanation of the reasons why the employee believes that--

    (i) The debt as stated in the pre-offset notice is not owing or is 

not enforceable by offset; or

    (ii) The amount of the proposed offset described in the pre-offset 

notice will cause extreme financial hardship to the employee;

    (3) If the employee contends that the amount of the proposed offset 

will



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cause extreme financial hardship under the standards set forth in Sec.  

31.8(b)--

    (i) An alternative offset proposal;

    (ii) An explanation, in writing, showing why the offset proposed in 

the notice would cause an extreme financial hardship for the employee; 

and

    (iii) Documents that show for the employee and for the spouse and 

dependents of the employee, for the one-year period preceding the 

Secretary's notice and for the repayment period proposed by the employee 

in his or her offset schedule--

    (A) Income from all sources,

    (B) Assets,

    (C) Liabilities,

    (D) Number of dependents,

    (E) Expenses for food, housing, clothing, and transportation,

    (F) Medical expenses, and

    (G) Exceptional expenses, if any; and

    (4) Copies of all documents that the employee wishes to have 

considered to support the objections raised by the employee regarding 

the enforceability of the debt or the claim of extreme financial 

hardship.

    (c) Request for oral hearing. (1) If the employee wants the hearing 

to be conducted as an oral hearing, the employee must submit a request 

that contains the information listed in paragraph (b) and must include 

with the request--

    (i) An explanation of reasons why the employee believes that the 

issues raised regarding the enforceability of the debt or a claim of 

extreme financial hardship cannot be resolved adequately by a review of 

the written statements and documents provided with the request for a 

hearing;

    (ii) An identification of--

    (A) The individuals that the employee wishes to have testify at the 

oral hearing;

    (B) The specific issues about which each individual is prepared to 

testify; and

    (C) The reasons why each individual's testimony is necessary to 

resolve the issue.

    (2) The Secretary grants a request for an oral hearing if--

    (i) The employee files a request for an oral hearing that meets the 

requirements of paragraphs (b) and (c) of this section; and

    (ii) The Secretary determines that the issues raised by the employee 

require a determination of the credibility of testimony and cannot be 

adequately resolved by a review of the written statements and documents 

submitted by the employee and documents contained in the Department's 

records relating to the debt.

    (3) The Secretary may decline a request for an oral hearing if the 

Secretary accepts the employee's proffer of testimomy made in the 

request for an oral hearing under paragraph (c)(1) of this section, and 

considers the facts at issue to be established as stated by the employee 

in the request.

    (4) If the Secretary grants a request for an oral hearing, the 

Secretary--

    (i) Notifies the employee in writing of--

    (A) The date, time, and place of the hearing;

    (B) The name and address of the hearing official;

    (C) The employee's right to be represented at the hearing by counsel 

or other representatives;

    (D) The employee's right to present and cross-examine witnesses; and

    (E) The employee's right to waive the requested oral hearing and 

receive a hearing in the written record; and

    (ii) Provides the hearing official with a copy of all written 

statements submitted by the employee with the request for a hearing, and 

all documents pertaining to the debt or the amount of the offset 

contained in the Department's files on the debt or submitted with the 

request for a hearing.

    (d) Employee choice of oral hearing or hearing on written 

submissions. An employee who has been sent notice under paragraph (c)(4) 

that an oral hearing will be provided must, within 15 days of the date 

of that notice, state in writing to the hearing official and the 

Secretary--

    (1) Whether the employee intends to proceed with the oral hearing, 

or wishes a decision based on the written record; and

    (2) Any changes in the list of the witnesses the employee proposes 

to produce for the hearing, or the facts about which a witness will 

testify.

    (e) Dismissal of request for hearing. The Secretary considers the 

employee to



[[Page 63]]



have waived the request for a hearing of any kind--

    (1) If an employee does not provide the hearing official in a timely 

manner the written statement required under paragraph (d) of this 

section; or

    (2) If the employee does not appear for a scheduled oral hearing.



(Authority: 5 U.S.C. 5514; 31 U.S.C. 3716)