Code of Federal Regulations (alpha)

CFR /  Title 34  /  Part 682  /  Sec. 682.607 Payment of a refund or a return of title IV, HEA program

(a) General. By applying for a FFEL loan, a borrower authorizes the school to pay directly to the lender that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan upon the borrower's withdrawal. A school--

(1) Must pay that portion of the student's refund or return of title IV, HEA program funds that is allocable to a FFEL loan to--

(i) The original lender; or

(ii) A subsequent holder, if the loan has been transferred and the school knows the new holder's identity; and

(2) Must provide simultaneous written notice to the borrower if the school makes a payment of a refund or a return of title IV, HEA program funds to a lender on behalf of that student.

(b) Allocation of a refund or returned title IV, HEA program funds. In determining the portion of a refund or the return of title IV, HEA program funds upon a student's withdrawal for an academic period that is allocable to a FFEL loan received by the borrower for that academic period, the school must follow the procedures established in part 668 for allocating a refund or return of title IV, HEA program funds.

(c) Timely payment. A school must pay a refund or a return of title IV, HEA program funds that is due in accordance with the timeframe in Sec. 668.22(j). (Authority: 20 U.S.C. 1077, 1078, 1078-1, 1078-2, 1082, 1094) [64 FR 59043, Nov. 1, 1999] Sec. 682.608 [Reserved]