34 CFR 668.58 - Interim disbursements.

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There are 3 Updates appearing in the Federal Register for 34 CFR 668. View below or at eCFR (GPOAccess)
§ 668.58 Interim disbursements.
(a)
(1) If an institution has reason to believe that an applicant's FAFSA information is inaccurate, until the information is verified and any corrections are made in accordance with § 668.59(a), the institution may not—
(i) Disburse any Federal Pell Grant, FSEOG, or Federal Perkins Loan Program funds to the applicant;
(ii) Employ or allow an employer to employ the applicant in its FWS Program; or
(iii) Originate a Direct Subsidized Loan, or disburse any such loan proceeds for any previously originated Direct Subsidized Loan to the applicant.
(2) If an institution does not have reason to believe that an applicant's FAFSA information is inaccurate prior to verification, the institution may—
(i)
(A) Withhold payment of Federal Pell Grant, Federal Perkins Loan, or FSEOG Program funds for the applicant; or
(B) Make one disbursement from each of the Federal Pell Grant, Federal Perkins Loan, or FSEOG Program funds for the applicant's first payment period of the award year;
(ii) Employ or allow an employer to employ that applicant, once he or she is an eligible student, under the FWS Program for the first 60 consecutive days after the student's enrollment in that award year; or
(iii)
(A) Withhold origination of the applicant's Direct Subsidized Loan; or
(B) Originate the Direct Subsidized Loan provided that the institution does not disburse Direct Subsidized Loan proceeds.
(3) If, after verification, an institution determines that changes to an applicant's information will not change the amount the applicant would receive under a title IV, HEA program, the institution—
(i) Must ensure corrections are made in accordance with § 668.59(a); and
(ii) May prior to receiving the corrected valid SAR or valid ISIR—
(A) Make one disbursement from each of the Federal Pell Grant, Federal Perkins Loan, or FSEOG Program funds for the applicant's first payment period of the award year;
(B) Employ or allow an employer to employ the applicant, once he or she is an eligible student, under the FWS Program for the first 60 consecutive days after the student's enrollment in that award year; or
(C) Originate the Direct Subsidized Loan and disburse the Direct Subsidized Loan proceeds for the applicant.
(b) If an institution chooses to make a disbursement under—
(1) Paragraph (a)(2)(i)(B) of this section, it—
(i) Is liable for any overpayment discovered as a result of verification to the extent that the overpayment is not recovered through reducing subsequent disbursements in the award year or from the student; and
(ii) Must recover the overpayment in accordance with § 668.61(a);
(2) Paragraph (a)(2)(ii) of this section, it—
(i) Is liable for any overpayment discovered as a result of verification to the extent that the overpayment is not eliminated by adjusting other financial assistance; and
(ii) Must recover the overpayment in accordance with § 668.61(b); or
(3) Paragraph (a)(3) of this section, it—
(i) Is liable for any subsidized student financial assistance disbursed if it does not receive the valid SAR or valid ISIR reflecting corrections within the deadlines established under § 668.60; and
(ii) Must recover the funds in accordance with § 668.61(c).
(Authority: 20 U.S.C. 1094)
[75 FR 66954, Oct. 29, 2010, as amended at 77 FR 20536, Apr. 13, 2012]

Title 34 published on 2013-07-01

The following are only the Rules published in the Federal Register after the published date of Title 34.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2013-11-01; vol. 78 # 212 - Friday, November 1, 2013
    1. 78 FR 65768 - Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program
      GPO FDSys XML | Text
      DEPARTMENT OF EDUCATION, Office of Postsecondary Education
      Final regulations.
      Effective date: These regulations are effective July 1, 2014. Implementation dates: For implementation dates, see the Implementation Date of These Regulations section of the SUPPLEMENTARY INFORMATION section.
      34 CFR Parts 668, 674, 682, and 685

Title 34 published on 2013-07-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 34 CFR 668 after this date.

  • 2013-11-01; vol. 78 # 212 - Friday, November 1, 2013
    1. 78 FR 65768 - Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program
      GPO FDSys XML | Text
      DEPARTMENT OF EDUCATION, Office of Postsecondary Education
      Final regulations.
      Effective date: These regulations are effective July 1, 2014. Implementation dates: For implementation dates, see the Implementation Date of These Regulations section of the SUPPLEMENTARY INFORMATION section.
      34 CFR Parts 668, 674, 682, and 685