34 C.F.R. 34 CFR--PART 682
Title 34 - Education
Effective Date(s): September 8, 2006 49. Section 682.305 is amended by: A. In paragraph (a)(3)(i)(A)(2), removing the punctuation “.” at the end of the paragraph and adding, in its place, the words “; and”. B. Adding a new paragraph (a)(3)(i)(A)(3). C. Revising paragraph (c)(1). D. Adding a new paragraph (d). The revisions and additions read as follows: (a) * * * (3)(i)(A) * * * (3) The amount of excess interest, as calculated in accordance with paragraph (d) of this section. * * * * * (c) Independent audits. (1) A lender (other than a school lender) originating or holding more than $5 million in FFEL loans during its fiscal year, and a school lender under §682.601 that originates or holds any FFEL loans during its fiscal year, must submit an independent annual compliance audit for that year, conducted by a qualified independent organization or person. The Secretary may, following written notice, suspend the payment of interest benefits and special allowance to a lender that does not submit its audit within the time period prescribed in paragraph (c)(2) or this section. * * * * * (d) Recovery of excess interest paid by the Secretary. (1) For any loan for which the first disbursement of principal is made on or after April 1, 2006, the Secretary collects the amount of excess interest paid to a lender on a quarterly basis when the applicable interest rate on a loan for each quarter exceeds the special allowance support level in paragraph (d)(2) of this section for the loan. Excess interest is calculated and recovered each quarter by subtracting the special allowance support level from the applicable interest, multiplying the result by the average daily principal balance of the loan (not including unearned interest added to principal) during the quarter, and dividing by four. (2) The term special allowance support level means a number expressed as a percentage equal to the sum of— (i) The average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H–15 (or its successor) for such 3-month period; plus (ii) 2.34 percent for a Federal Stafford loan in repayment; (iii) 1.74 percent for a Federal Stafford loan during the in-school, grace, and deferment periods; or (iv) 2.64 percent for a Federal PLUS or Consolidation Loan. * * * * *
Amendment from August 09, 2006
34 CFR--PART 682
Amendment(s) published August 9, 2006, in 71 FR 45705
§ 682.305 Procedures for payment of interest benefits and special allowance and collection of origination and loan fees.
