---
kind: "section"
citation: "34 C.F.R. § 682.607"
title: "34"
number: "682.607"
heading: "Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal."
url: "https://uscodex.org/cfr/34/682.607"
---

# §682.607. Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.

- (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](/cfr/34/part668.md) 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)](/cfr/34/668.22.md?p=j).

## Notes

### 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]