34 CFR 674.13 - Reimbursement to the Fund.
(a) The Secretary may require an institution to reimburse its Fund in an amount equal to that portion of the outstanding balance of—
(1) A loan disbursed by the institution to a borrower in excess of the amount that the borrower was eligible to receive, as determined on the basis of information the institution had, or should have had, at the time of disbursement; or
(2) Except as provided in paragraph (b) of this section, a defaulted loan with regard to which the institution failed—
(b) The Secretary does not require an institution to reimburse its Fund for the portion of the outstanding balance of a defaulted loan described in paragraph (a)(2) of this section—
(ii) Demonstrates, to the Secretary's satisfaction, would not have been collected from the borrower even if the institution complied in a timely manner with the due diligence requirements of subpart C of this part; or
(c) An institution that is required to reimburse its Fund under paragraph (a) of this section shall also reimburse the Fund for the amount of the administrative cost allowance claimed by the institution for that portion of the loans to be reimbursed.
(d) An institution that reimburses its Fund under paragraph (a) of this section thereby acquires for its own account all the right, title and interest of the Fund in the loan for which reimbursement has been made.(Approved by the Office of Management and Budget under control number 1845-0019)
(Authority: 20 U.S.C. 1087dd-1087hh)
Title 34 published on 2014-07-01
no entries appear in the Federal Register after this date.