34 C.F.R. § 682.607 Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.
Title 34 - Education
(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 §668.22(j). (Authority: 20 U.S.C. 1077, 1078, 1078–1, 1078–2, 1082, 1094) [64 FR 59043, Nov. 1, 1999]
Title 34: Education
PART 682—FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM
Subpart F—Requirements, Standards, and Payments for Participating Schools
§ 682.607 Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.
