§682.607. Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.
34 C.F.R. § 682.607
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—
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—
The original lender; or
A subsequent holder, if the loan has been transferred and the school knows the new holder's identity; and
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.
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.
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).
Notes, amendments, and revision history
Amendments
[64 FR 59043, Nov. 1, 1999]
Authority
Authority: 20 U.S.C. 1071—1087-2, 1078-6(a)(5).
Source
Source: 57 FR 60323, Dec. 18, 1992, unless otherwise noted.
Amendments
[64 FR 59043, Nov. 1, 1999]