---
kind: "section"
citation: "34 C.F.R. § 685.306"
title: "34"
number: "685.306"
heading: "Payment of a refund or return of title IV, HEA program funds to the Secretary."
url: "https://uscodex.org/cfr/34/685.306"
---

# §685.306. Payment of a refund or return of title IV, HEA program funds to the Secretary.

- (a) **General.** By applying for a Direct Loan, a borrower authorizes the school to pay directly to the Secretary that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan. 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 Direct Loan to the Secretary; and
  - (2) Must provide simultaneous writ-ten notice to the borrower if the school pays a refund or return of title IV, HEA program funds to the Secretary on be-half of that student.
- (b) **Determination, allocation, and payment of a refund or return of title IV, HEA program funds.** In determining the portion of a student's refund or return of title IV, HEA program funds that is allocable to a Direct Loan, the school must follow the procedures established in [34 CFR 668.22](/cfr/34/668.22.md) for allocating and paying a refund or return of title IV, HEA program funds that is due.

## Notes

### Amendments

[64 FR 59044, Nov. 1, 1999; 65 FR 37045, June 13, 2000, as amended at 78 FR 65841, Nov. 1, 2013]

### Authority

Authority: 20 U.S.C. 1087a—1087j. Subpart A also issued under U.S.C. 1087e(a). Subpart B also issued under U.S.C 1078, 1078-3, 1087(e), 1087e(a)(2), 1087e(a), 1087e(a)(3), 1087e(b), 1087e(d), 1087e(d)(1), 1087e(f), 1087e(g), 1087(m)(1)(A), 1091(a), 1092(d)(1), 1098e(a)(2), 1098e(a)(3), 1098h(a)(2). Subpart C also issued under U.S.C 1087a.

### Source

Source: 59 FR 61690, Dec. 1, 1994, unless otherwise noted.

### Amendments

[64 FR 59044, Nov. 1, 1999; 65 FR 37045, June 13, 2000, as amended at 78 FR 65841, Nov. 1, 2013]