[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: 34CFR685.308]

[Page 873]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents
 
Subpart C--Requirements, Standards, and Payments for Direct Loan Program 
                                 Schools
 
Sec. 685.308  Remedial actions.

    (a) General. The Secretary may require the repayment of funds and 
the purchase of loans by the school if the Secretary determines that the 
unenforceability of a loan or loans, or the disbursement of loan amounts 
for which the borrower was ineligible, resulted in whole or in part 
from--
    (1) The school's violation of a Federal statute or regulation; or
    (2) The school's negligent or willful false certification.
    (b) In requiring a school to repay funds to the Secretary or to 
purchase loans from the Secretary in connection with an audit or program 
review, the Secretary follows the procedures described in 34 CFR part 
668, subpart H.
    (c) The Secretary may impose a fine or take an emergency action 
against a school or limit, suspend, or terminate a school's 
participation in the Direct Loan Program in accordance with 34 CFR part 
668, subpart G.

(Authority: 20 U.S.C. 1087a et seq.)