---
kind: "section"
citation: "34 C.F.R. § 674.63"
title: "34"
number: "674.63"
heading: "Reimbursement to institutions for loan cancellation."
url: "https://uscodex.org/cfr/34/674.63"
---

# §674.63. Reimbursement to institutions for loan cancellation.

- (a) **Reimbursement for Defense loan cancellation.**
  - (1) The Secretary pays an institution each award year its share of the principal and interest canceled under §§ [674.55](/cfr/34/674.55.md) and [674.59(a)](/cfr/34/674.59.md?p=a).
  - (2) **The institution's share of cancelled principal and interest is computed by the following ratio—**
- (b) **Reimbursement for NDSL and Federal Perkins loan cancellation.** The Secretary pays an institution each award year the principal and interest canceled from its student loan fund under §§ [674.53](/cfr/34/674.53.md), [674.54](/cfr/34/674.54.md), [674.56](/cfr/34/674.56.md), [674.57](/cfr/34/674.57.md), [674.58](/cfr/34/674.58.md), [674.59(b)](/cfr/34/674.59.md?p=b), and [674.60](/cfr/34/674.60.md). The institution shall deposit this amount in its Fund.

## Notes

### Amendments

[52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994]

### Source

Source: 52 FR 45758, Dec. 1, 1987, unless otherwise noted.

### Authority

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

### Amendments

[52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994]