[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: 34CFR690.79]

[Page 908-909]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 690_FEDERAL PELL GRANT PROGRAM--Table of Contents
 
               Subpart G_Administration of Grant Payments
 
Sec. 690.79  Liability for and recovery of Federal Pell Grant overpayments.

    (a)(1) Except as provided in paragraphs (a)(2) and (a)(3) of this 
section, a student is liable for any Federal Pell Grant overpayment made 
to him or her.
    (2) The institution is liable for a Federal Pell Grant overpayment 
if the overpayment occurred because the institution failed to follow the 
procedures set forth in this part or 34 CFR Part 668. The institution 
must restore an amount equal to the overpayment to its Federal Pell 
Grant account.
    (3) A student is not liable for, and the institution is not required 
to attempt recovery of or refer to the Secretary, a Federal Pell Grant 
overpayment if the amount of the overpayment is less than $25 and is not 
a remaining balance.
    (b)(1) Except as provided in paragraph (a)(3) of this section, if an 
institution makes a Federal Pell Grant overpayment for which it is not 
liable, it must promptly send a written notice to the student requesting 
repayment of the overpayment amount. The notice must state that failure 
to make that repayment, or to make arrangements satisfactory to the 
holder of the overpayment debt to repay the overpayment, makes the 
student ineligible for further title IV, HEA program funds until final 
resolution of the Federal Pell Grant overpayment.
    (2) If a student objects to the institution's Federal Pell Grant 
overpayment determination on the grounds that it is erroneous, the 
institution must consider any information provided by the student and 
determine whether the objection is warranted.
    (c) Except as provided in paragraph (a)(3) of this section, if the 
student fails to repay a Federal Pell Grant overpayment or make 
arrangements satisfactory to the holder of the overpayment debt to repay 
the Federal Pell Grant overpayment, after the institution has taken the 
action required by paragraph (b) of this section, the institution must 
refer the overpayment to the Secretary for collection purposes in 
accordance with procedures required by the Secretary. After referring 
the Federal Pell Grant overpayment to the

[[Page 909]]

Secretary under this section, the institution need make no further 
efforts to recover the overpayment.

(Authority: 20 U.S.C. 1070a)

[67 FR 67083, Nov. 1, 2002]