[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: 34CFR682.700]

[Page 802-803]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 682--FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM--Table of Contents
 
  Subpart G--Limitation, Suspension, or Termination of Lender or Third-
 party Servicer Eligibility and Disqualification of Lenders and Schools
 
Sec. 682.700  Purpose and scope.


    (a) This subpart governs the limitation, suspension, or termination 
by the Secretary of the eligibility of an otherwise eligible lender to 
participate in the FFEL programs or the eligibility of a third-party 
servicer to enter into a contract with an eligible lender to administer 
any aspect of the lender's FFEL programs. The regulations in this 
subpart apply to a lender or third-party servicer that violates any 
statutory provision governing the FFEL programs or any regulations, 
special arrangements, agreements, or limitations entered into under the 
authority of statutes applicable to Title IV of the HEA prescribed under 
the FFEL programs. These regulations apply to lenders that participate 
only in a guaranty

[[Page 803]]

agency program, lenders that participate in the FFEL programs, and 
third-party servicers that administer aspects of a lender's FFELP 
portfolio. These regulations also govern the Secretary's 
disqualification of a lender or school from participation in the FFEL 
programs under section 432(h)(2) and (h)(3) of the Act.
    (b) This subpart does not apply--
    (1)(i) To a determination that an organization fails to meet the 
definition of ``eligible lender'' in section 435(d)(1) of the Act or the 
definition of ``lender'' in Sec. 682.200, for any reason other than a 
violation of the prohibitions in section 435(d)(5) of the Act; or
    (ii) To a determination that an organization fails to meet the 
standards in Sec. 682.416;
    (2) To a school's loss of lending eligibility under Sec. 682.608; or
    (3) To an administrative action by the Department of Education based 
on any alleged violation of--
    (i) The Family Educational Rights and Privacy Act of 1974 (section 
438 of the General Education Provisions Act), which is governed by 34 
CFR part 99;
    (ii) Title VI of the Civil Rights Act of 1964, which is governed by 
34 CFR parts 100 and 101;
    (iii) Section 504 of the Rehabilitation Act of 1973 (relating to 
discrimination on the basis of handicap), which is governed by 34 CFR 
part 104; or
    (iv) Title IX of the Education Amendments of 1972 (relating to sex 
discrimination), which is governed by 34 CFR part 106.
    (c) This subpart does not supplant any rights or remedies that the 
Secretary may have against participating lenders or schools under other 
authorities.

(Authority: 20 U.S.C. 1080, 1082, 1085, 1094)

[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22456, Apr. 29, 1994]