[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR682.400]

[Page 704-705]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 682_FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents
 
 Subpart D_Administration of the Federal Family Education Loan Programs 
                          by a Guaranty Agency
 
Sec. 682.400  Agreements between a guaranty agency and the Secretary.


    (a) The Secretary enters into agreements with a guaranty agency 
whose loan guarantee program meets the requirements of this subpart. The 
agreements enable the guaranty agency to participate in the FFEL 
programs and to receive the various payments and benefits related to 
that participation.
    (b) There are four agreements:
    (1) Basic program agreement. In order to participate in the FFEL 
programs, a guaranty agency must have a basic program agreement. Under 
this agreement--
    (i) Borrowers whose Stafford and Consolidation loans that 
consolidate only subsidized Stafford loans are guaranteed by the agency 
may qualify for interest benefits that are paid to the lender on the 
borrower's behalf; and
    (ii) Lenders under the guaranty agency program may receive special 
allowance payments from the Secretary and have death, disability, 
bankruptcy, closed school and false certification discharge claims paid 
by the Secretary through the guaranty agency.
    (2) Federal advances for claim payments agreement. A guaranty agency 
must have an agreement for Federal advances for claim payments to 
receive and use Federal advances to pay default claims.
    (3) Reinsurance agreement. A guaranty agency must have a reinsurance 
agreement to receive reimbursement from the Secretary for its losses on 
default claims.
    (4) Loan Rehabilitation Agreement. A guaranty agency must have an 
agreement for rehabilitating a loan for which the Secretary has made a 
reinsurance payment under section 428(c)(1) of the Act.
    (c) The Secretary's execution of an agreement does not indicate 
acceptance of any current or past standards or procedures used by the 
agency.
    (d) All of the agreements are subject to subsequent changes in the 
Act, in other applicable Federal statutes, and

[[Page 705]]

in regulations that apply to the FFEL programs.

(Authority: 20 U.S.C. 1072, 1078-1, 1078-2, 1078-3, 1082, 1087, 1087-1)

[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 33353, June 28, 1994; 
64 FR 18978, Apr. 16, 1999; 64 FR 58627, Oct. 29, 1999]