34 C.F.R. 34 CFR--PART 682
Title 34 - Education
Effective Date(s): September 8, 2006 51. Section 682.402 is amended by: A. Amending paragraph (a)(4) by removing the words “paragraphs (e)(1)(ii)” and, inserting in their place, the words “paragraph (e)(1)(ii) or (iii)”. B. Revising paragraph (e)(1)(i) introductory text. C. Adding a new paragraph (e)(1)(i)(C). D. Adding a new paragraph (e)(1)(iii). E. Redesignating paragraphs (e)(3)(v) and (e)(3)(vi) as paragraphs (e)(3)(vi) and (e)(3)(vii), respectively. F. Adding a new paragraph (e)(3)(v). G. In the heading of paragraph (e)(7), adding the words “that he or she was a victim of the crime of identity theft” after the word “note.” H. In paragraph (e)(7)(ii)(C)(2), removing the punctuation “.”, and adding, in its place, the words “; and”. I. In paragraph (e)(7)(ii), adding a new paragraph (e)(7)(ii)(D). J. In the heading of the paragraph (e)(9), adding the words “that he or she was a victim of the crime of identity theft,” after the word “note,”. K. In paragraph (e)(9)(ii)(B), removing the word “and”. L. In paragraph (e)(9)(ii)(C), removing the punctuation “.”, and adding, in its place, the words “; and”. M. In paragraph (e)(9)(ii), adding a new paragraph (e)(9)(ii)(D). N. Redesignating paragraph (e)(14) as paragraph (e)(15). O. Adding a new paragraph (e)(14). The revisions and additions read as follows: * * * * * (e) False certification by a school of a student's eligibility to borrower and unauthorized disbursements. (1) General. (i) The Secretary reimburses the holder of a loan received by a borrower on or after January 1, 1986, and discharges a current or former borrower's obligation with respect to the loan in accordance with the provisions of paragraph (e) of this section, if the borrower's (or the student for whom a parent received a PLUS loan) eligibility to receive the loan was falsely certified by an eligible school. On or after July 1, 2006, the Secretary reimburses the holder of a loan, and discharges a borrower's obligation with respect to the loan in accordance with the provisions of paragraph (e) of this section, if the borrower's eligibility to receive the loan was falsely certified as a result of a crime of identity theft. For purposes of a false certification discharge, the term “borrower” includes all endorsers on a loan. A student's or other individual's eligibility to borrow shall be considered to have been falsely certified by the school if the school— * * * * * (C) Certified the eligibility of an individual for an FFEL Program loan as a result of the crime of identity theft committed against the individual, as that crime is defined in §682.402(e)(14). * * * * * (iii) If a loan was made as a result of the crime of identity theft that was committed by an employee or agent of the lender, or if at the time the loan was made, an employee or agent of the lender knew of the identity theft of the individual named as the borrower— (A) The Secretary does pay reinsurance, and does not reimburse the holder, for any amount disbursed on the loan; and (B) Any amounts received by a holder as interest benefits and special allowance payments with respect to the loan must be refunded to the Secretary, as provided in paragraphs (e)(8)(ii)(B)(4) and (e)(10)(ii)(D) of this section. * * * * * (3) * * * (v) In the case of an individual who is requesting a discharge of a loan because the individual's eligibility was falsely certified as a result of a crime of identity theft committed against the individual— (A) Certify that the individual did not sign the promissory note, or that any other means of identification used to obtain the loan was used without the authorization of the individual claiming relief; (B) Certify that the individual did not receive or benefit from the proceeds of the loan with knowledge that the loan had been made without the authorization of the individual; (C) Provide a copy of a local, State, or Federal court verdict or judgment that conclusively determines that the individual who is named as the borrower of the loan was the victim of a crime of identify theft; (D) If the judicial determination of the crime does not expressly state that the loan was obtained as a result of the crime, provide— (1) Authentic specimens of the signature of the individual, as provided in paragraph (e)(3)(iii)(B), or other means of identification of the individual, as applicable, corresponding to the means of identification falsely used to obtain the loan; and (2) A statement of facts that demonstrate, to the satisfaction of the Secretary, that eligibility for the loan in question was falsely certified as a result of the crime of identity theft committed against that individual. * * * * * (7) * * * (ii) * * * (D) Within 30 days, demand payment in full from the perpetrator of the identity theft committed against the individual, and if payment is not received, pursue collection action thereafter against the perpetrator. * * * * * (9) * * * (ii) * * * (D) Within 30 days, demand payment in full from the perpetrator of the identity theft committed against the individual, and if payment is not received, pursue collection action thereafter against the perpetrator. * * * * * (14) Identity theft. (i) The unauthorized use of the identifying information of another individual that is punishable under 18 U.S.C. 1028, 1029, or 1030, or substantially comparable State or local law. (ii) Identifying information includes, but is not limited to— (A) Name, Social Security number, date of birth, official State or government issued driver's license or identification number, alien registration number, government passport number, and employer or taxpayer identification number; (B) Unique biometric data, such as fingerprints, voiceprint, retina or iris image, or unique physical representation; (C) Unique electronic identification number, address, or routing code; or (D) Telecommunication identifying information or access device (as defined in 18 U.S.C. 1029(e)). * * * * *
Amendment from August 09, 2006
34 CFR--PART 682
Amendment(s) published August 9, 2006, in 71 FR 45706
§ 682.402 Death, disability, closed school, false certification, unpaid refunds, and bankruptcy payments.
