[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: 34CFR691.79]

[Page 923]
 
                           TITLE 34--EDUCATION
 
 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION
 
PART 691_ACADEMIC COMPETITIVENESS GRANT (ACG) AND NATIONAL SCIENCE AND 
 
               Subpart G_Administration of Grant Payments
 
Sec. 691.79  Liability for and recovery of grant overpayments.

    (a)(1) Except as provided in paragraphs (a)(2) and (a)(3) of this 
section, a student is liable for any grant overpayment made to him or 
her under this part.
    (2) The institution is liable for a 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 ACG or National 
SMART Grant account, as applicable.
    (3) A student is not liable for, and the institution is not required 
to attempt recovery of or refer to the Secretary, a grant overpayment 
under this part 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 an overpayment under this part 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 overpayment.
    (2) If a student objects to the institution's 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 an overpayment under this part or make 
arrangements satisfactory to the holder of the overpayment debt to repay 
the 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 overpayment to 
the Secretary under this section, the institution need make no further 
efforts to recover the overpayment.

(Authority: 20 U.S.C. 1070a-1)

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