---
kind: "section"
citation: "34 C.F.R. § 674.40"
title: "34"
number: "674.40"
heading: "Treatment of loan repayments where cancellation, loan repayments, and minimum monthly repayments apply."
url: "https://uscodex.org/cfr/34/674.40"
---

# §674.40. Treatment of loan repayments where cancellation, loan repayments, and minimum monthly repayments apply.

- (a) An institution may not exercise the minimum monthly repayment provisions on a note when the borrower has received a partial cancellation for the period covered by a postponement.
- (b) If a borrower has received Defense, NDSL, and Perkins loans and only one can be cancelled, the amount due on the uncancelled loan is the amount established in [§ 674.31(b)](/cfr/34/674.31.md?p=b) (2), loan repayment terms; [§ 674.33(b)](/cfr/34/674.33.md?p=b), minimum repayment rates; or [§ 674.33(c)](/cfr/34/674.33.md?p=c), extension of repayment period.

## Notes

### Amendments

[52 FR 45754, Dec. 1, 1987. Redesignated at 59 FR 61410, Nov. 30, 1994]

### Source

Source: 52 FR 45754, Dec. 1, 1987, unless otherwise noted.

### Authority

Authority: 20 U.S.C. 1071—1087ii; 1087dd(h)(1)(D).

### Amendments

[52 FR 45754, Dec. 1, 1987. Redesignated at 59 FR 61410, Nov. 30, 1994]