§ 682.607. Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.
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/us/cfr/t34/s§ 682.607·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General. By applying for a FFEL loan, a borrower authorizes the school to pay directly to the lender that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan upon the borrower's withdrawal. 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 FFEL loan to---
(i)The original lender; or
(ii)A subsequent holder, if the loan has been transferred and the school knows the new holder's identity; and
(2)Must provide simultaneous written notice to the borrower if the school makes a payment of a refund or a return of title IV, HEA program funds to a lender on behalf of that student.
(b)Allocation of a refund or returned title IV, HEA program funds. In determining the portion of a refund or the return of title IV, HEA program funds upon a student's withdrawal for an academic period that is allocable to a FFEL loan received by the borrower for that academic period, the school must follow the procedures established in part 668 for allocating a refund or return of title IV, HEA program funds.
(c)Timely payment. A school must pay a refund or a return of title IV, HEA program funds that is due in accordance with the timeframe in § 668.22(j). (Authority: 20 U.S.C. 1077, 1078, 1078-1, 1078-2, 1082, 1094) \[64 FR 59043, Nov. 1, 1999\]
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§ 682.607
Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.
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