---
kind: "section"
citation: "34 C.F.R. § 682.705"
title: "34"
number: "682.705"
heading: "Suspension proceedings."
url: "https://uscodex.org/cfr/34/682.705"
---

# §682.705. Suspension proceedings.

- (a) **Scope.**
  - (1) A suspension by the Secretary removes a lender's eligibility under the FFEL programs or a third-party servicer's ability to enter into contracts with eligible lenders, and the Secretary does not guarantee or reinsure a new loan serviced by the servicer during a period not to exceed 60 days from the date the suspension becomes effective, unless—
    - (i) The lender or servicer and the Secretary agree to an extension of the suspension period, if the lender or third-party servicer has not requested a hearing; or
    - (ii) **The Secretary begins a limitation or a termination proceeding.**
  - (2) If the Secretary begins a limitation or a termination proceeding before the suspension period ends, the Secretary may extend the suspension period until the completion of that proceeding, including any appeal to the Secretary.
- (b) **Notice.**
  - (1) The Secretary, or a designated Departmental official, begins a suspension proceeding by sending the lender or servicer a notice by certified mail with return receipt requested.
  - (2) **The notice—**
    - (i) Informs the lender or servicer of the Secretary's intent to suspend the lender's or servicer's eligibility for a period not to exceed 60 days;
    - (ii) Describes the consequences of a suspension;
    - (iii) Identifies the alleged violations on which the proposed suspension is based;
    - (iv) States the proposed date the suspension becomes effective, which is at least 20 days after the date of mailing of the notice;
    - (v) Informs the lender or servicer that the suspension will not take effect on the proposed date if the Secretary receives at least five days prior to that date a request for an oral hearing or written material showing why the suspension should not take effect; and
    - (vi) **Asks the lender or servicer to correct voluntarily any alleged violations.**

## Notes

### Amendments

[59 FR 22457, Apr. 29, 1994, as amended at 60 FR 33058, June 26, 1995; 66 FR 34764, June 29, 2001; 68 FR 66615, Nov. 26, 2003; 72 FR 62009, Nov. 1, 2007; 78 FR 65822, Nov. 1, 2013]

### 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

[59 FR 22457, Apr. 29, 1994, as amended at 60 FR 33058, June 26, 1995; 66 FR 34764, June 29, 2001; 68 FR 66615, Nov. 26, 2003; 72 FR 62009, Nov. 1, 2007; 78 FR 65822, Nov. 1, 2013]