(a) The Secretary may offset before completing the procedures otherwise required by Sec. Sec. 30.22-30.27 if:
(1) Failure to offset would substantially prejudice the Government's ability to collect the debt; and
(2) The amount of time remaining before the payment by the United States which is subject to offset does not reasonably permit completion of the procedures under Sec. Sec. 30.22-30.27.
(b) If the Secretary offsets under paragraph (a) of this section, the Secretary:
(1) Promptly completes the procedures under Sec. Sec. 30.22-30.27 after initiating the offset; and
(2) Refunds any amounts recovered under the offset that are later found not to be owed to the United States. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b))