[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR682.503]

[Page 784-785]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents
 
           Subpart E--Federal Guaranteed Student Loan Programs
 
Sec. 682.503  The guarantee agreement.

    (a)(1) To participate in the Federal GSL programs, a lender must 
have a guarantee agreement with the Secretary. The Secretary does not 
guarantee a loan unless it is covered by such an agreement.
    (2) In general, under a guarantee agreement the lender agrees to 
comply with all laws, regulations, and other requirements applicable to 
its participation as a lender in the Federal GSL programs. In return, 
the Secretary agrees to guarantee each eligible Federal GSL loan held by 
the lender against the borrower's default, death, total and permanent 
disability, or bankruptcy.
    (3) The Secretary may include in an agreement a limit on the 
duration of the agreement and the number or amount of Federal GSL loans 
the lender may make or hold.

[[Page 785]]

    (b)(1) Except as otherwise approved by the Secretary, a guarantee 
agreement with a school lender limits the Federal GSL loans made by that 
school lender that will be covered by the Federal guarantee to those 
loans made to students, or to parents borrowing on behalf of students, 
who are--
    (i) In attendance at that school;
    (ii) In attendance at other schools under the same ownership as that 
school; or
    (iii) Employees or dependents of employees, or whose parents are 
employees, of that school lender or other schools under the same 
ownership, under circumstances the Secretary considers appropriate for 
loan guarantees.
    (2) The Secretary may on a school-by-school basis impose limits 
under paragraph (b)(1)(iii) of this section on a school lender that 
makes loans to students or to parents of students in attendance at other 
schools under the same ownership, or to employees, or to dependents or 
parents of employees, of those other schools.

(Authority: 20 U.S.C. 1078-1, 1078-2, 1078-3, 1079, 1082)