---
kind: "section"
citation: "7 C.F.R. § 766.1"
title: "7"
number: "766.1"
heading: "Introduction."
url: "https://uscodex.org/cfr/7/766.1"
---

# §766.1. Introduction.

- (a) **This part describes the Agency's servicing policies for direct loan borrowers who—**
  - (1) Are financially distressed;
  - (2) Are delinquent in paying direct loans or otherwise in default;
  - (3) Have received unauthorized assistance;
  - (4) Have filed bankruptcy or are involved in other civil or criminal cases affecting the Agency; or
  - (5) **Have loan security being liquidated voluntarily or involuntarily.**
- (b) **The Agency services direct FLP loans under the policies contained in this part.**
  - (1) **Youth loans—**
    - (i) May not receive DSA under subpart B of this part or DBSA under subpart J of this part;
    - (ii) Will only be considered for rescheduling according to [§ 766.107](/cfr/7/766.107.md) and deferral according to [§ 766.109](/cfr/7/766.109.md).
  - (2) **The Agency does not service Non-program loans under this part except where noted.**
- (c) The Agency requires the borrower to make every reasonable attempt to make payments and comply with loan agreements before the Agency considers special servicing.

## Notes

### Amendments

[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65043, Aug. 8, 2024]

### Authority

Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c).

### Source

Source: 72 FR 63316, Nov. 8, 2007, unless otherwise noted.

### Amendments

[72 FR 63316, Nov. 8, 2007, as amended at 89 FR 65043, Aug. 8, 2024]