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Student Loan Law: 34 C.F.R. § 685.102 Definitions.

(a)(1) The definitions of the following terms used in this part are set forth in the Student Assistance General Provisions, 34 CFR part 668:

Academic year

Campus-based programs

Dependent student

Disbursement

Eligible program

Eligible student

Enrolled

Student Loan Law: 34 C.F.R. § 685.405 Institutional response.

(a) For purposes of adjudicating a borrower defense claim other than those based on prior Secretarial final actions in accordance with § 685.404, the Department official notifies the institution of the group claim under § 685.402 or individual claim under § 685.403 and requests a response from the school. Such notification also may include, but is not limited to, requests for documentation to substantiate the school's response.

Student Loan Law: 34 C.F.R. § 685.221 Income-based repayment plan.

(a) Definitions. As used in this section—

(1) Adjusted gross income (AGI) means the borrower’s adjusted gross income as reported to the Internal Revenue Service. For a married borrower filing jointly, AGI includes both the borrower’s and spouse’s income. For a married borrower filing separately, AGI includes only the borrower’s income.

Student Loan Law: 34 C.F.R. § 685.207 Obligation to repay.

(a) Obligation of repayment in general.

(1) A borrower is obligated to repay the full amount of a Direct Loan, including the principal balance, fees, any collection costs charged under § 685.202(e), and any interest not subsidized by the Secretary, unless the borrower is relieved of the obligation to repay as provided in this part.

Student Loan Law: 34 C.F.R. § 685.211 Miscellaneous repayment provisions.

(a) Payment application and prepayment.

(1) Except as provided for the income-contingent repayment plan under § 685.209(a)(3) or the income-based repayment plan under § 685.221(c)(1), the Secretary applies any payment first to any accrued charges and collection costs, then to any outstanding interest, and then to outstanding principal.

Student Loan Law: 34 C.F.R. § 685.220 Consolidation.

(a) Direct Consolidation Loans. A borrower may consolidate education loans made under certain Federal programs into a Direct Consolidation Loan. Loans consolidated into a Direct Consolidation Loan are discharged when the Direct Consolidation Loan is originated.

(b) Loans eligible for consolidation. The following loans may be consolidated into a Direct Consolidation Loan:

(1) Subsidized Federal Stafford Loans.

Student Loan Law: 34 C.F.R. § 685.204 Deferment.

(a) General.

(1) A Direct Subsidized Loan or Direct Subsidized Consolidation Loan borrower who meets the requirements described in paragraphs (b), (d), (e), (f), (g), (h), (i), or (j) of this section is eligible for a deferment during which periodic installments of principal and interest need not be paid.

Student Loan Law: 34 C.F.R. § 685.200 Borrower eligibility.

(a) Student Direct Subsidized or Direct Unsubsidized borrower.

(1) A student is eligible to receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a combination of these loans, if the student meets the following requirements:

(i) The student is enrolled, or accepted for enrollment, on at least a half-time basis in a school that participates in the Direct Loan Program.

Student Loan Law: 34 C.F.R. § 685.216 Unpaid refund discharge.

(a)(1) Unpaid refunds in closed school situations. In the case of a school that has closed, the Secretary discharges a former or current borrower’s (and any endorser’s) obligation to repay that portion of a Direct Loan equal to the refund that should have been made by the school under applicable law and regulations, including this section. Any accrued interest and other charges associated with the unpaid refund are also discharged.

(2) Unpaid refunds in open school situations.

Student Loan Law: 34 C.F.R. § 685.210 Choice of repayment plan.

(a) Initial selection of a repayment plan.

(1) Before a Direct Loan enters into repayment, the Secretary provides the borrower a description of the available repayment plans and requests the borrower to select one. A borrower may select a repayment plan before the loan enters repayment by notifying the Secretary of the borrower’s selection in writing.

Student Loan Law: 34 C.F.R. § 674.61 Discharge for death or disability.

(a) Death.

(1) An institution must discharge the unpaid balance of a borrower’s Defense, NDSL, or Federal Perkins loan, including interest, if the borrower dies. The institution must discharge the loan on the basis of—

(i) An original or certified copy of the death certificate;

(ii) An accurate and complete photocopy of the original or certified copy of the death certificate;

Student Loan Law: Listing of Provisions, Source, and Authority

TITLE 34—EDUCATION

SUBTITLE B—REGULATIONS OF THE OFFICES OF THE DEPARTMENT OF EDUCATION

CHAPTER VI—OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

PART 674—FEDERAL PERKINS LOAN PROGRAM

SUBPART B—TERMS OF LOANS

34 C.F.R. sec.

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674.33 Repayment.

Student Loan Law: 34 C.F.R. § 674.52 Cancellation procedures.

(a) Application for cancellation. To qualify for cancellation of a loan, a borrower shall submit to the institution to which the loan is owed, by the date that the institution establishes, both a written request for cancellation and any documentation required by the institution to demonstrate that the borrower meets the conditions for the cancellation requested.

(b) Part-time employment.

Student Loan Law: 34 C.F.R. § 674.33 Repayment.

(a) Repayment Plan.

(1) The institution shall establish a repayment plan before the student ceases to be at least a half-time regular student.

(2) If the last scheduled payment would be $25 or less the institution may combine it with the next-to-last repayment.

Student Loan Law: 34 C.F.R. § 674.39 Loan rehabilitation.

(a) Each institution must establish a loan rehabilitation program for all borrowers for the purpose of rehabilitating defaulted loans made under this part, except for loans for which a judgment has been secured or loans obtained by fraud for which the borrower has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining title IV, HEA program assistance. The institution’s loan rehabilitation program must provide that—

Student Loan Law: 34 C.F.R. § 674.38 Deferment procedures.

(a)(1) Except as provided in paragraph (a)(5)of this section, a borrower must request the deferment and provide the institution with all information and documents required by the institution by the date that the institution establishes.

Student Loan Law: 34 C.F.R. § 674.50 Assignment of defaulted loans to the United States.

(a) An institution may submit a defaulted loan note to the Secretary for assignment to the United States if—

(1) The institution has been unable to collect on the loan despite complying with the diligence procedures, including at least a first level collection effort as described in § 674.45(a) and litigation, if required under § 674.46(a), to the extent these actions were required by regulations in effect on the date the loan entered default;

Student Loan Law: 34 C.F.R. § 674.51 Special definitions.

The following definitions apply to this Subpart:

(a) Academic year or its equivalent for elementary and secondary schools and special education:

(1) One complete school year, or two half years from different school years, excluding summer sessions, that are complete and consecutive and generally fall within a 12-month period.

Student Loan Law: Listing of Provisions, Source, and Authority

TITLE 34—EDUCATION

SUBTITLE A—OFFICE OF THE SECRETARY, DEPARTMENT OF EDUCATION

PART 30—DEBT COLLECTION

SUBPART A—GENERAL

34 C.F.R. sec.

30.1 What administrative actions may the Secretary take to collect a debt?

30.2 On what authority does the Secretary rely to collect a debt under this part?

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