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Citations: (R)685.306 AsOfDate: 9/30/99 Sec. 685.306 Payment of a refund to the Secretary. (a) General. By applying for a Direct Loan, a borrower authorizes the school to pay directly to the Secretary that portion of a refund from the school that is allocable to the loan. A school-- (1) Shall pay that portion of the student's refund that is allocable to a Direct Loan to the Secretary; and (2) Shall provide simultaneous written notice to the borrower if the school pays a refund to the Secretary on behalf of that student. (b) Determination, allocation, and payment of a refund. In determining the portion of a student's refund that is allocable to a Direct Loan, the school shall follow the procedures established in 34 CFR 668.22 for allocating and paying a refund that is due. (Authority: 20 U.S.C. 1087a et seq.) |
