§ 682.703 Informal compliance procedure.
FederalRegulations
Ask Donna
How this section applies to your facts.
Title 34 CFR: Education › Chapter VI: OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION › Part 682: FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM › Subpart G: Limitation, Suspension, or Termination of Lender or Third-Party Servicer Eligibility and Disqualification of Lenders › § 682.703: § 682.703 Informal compliance procedure.
Text
(a) The Secretary may use the informal compliance procedure in paragraph (b) of this section if the Secretary receives a complaint or other reliable information indicating that a lender or third-party servicer may be in violation of applicable laws, regulations, special arrangements, agreements, or limitations entered into under the authority of statutes applicable to Title IV of the HEA.
(b) Under the informal compliance procedure, the Secretary gives the lender or servicer a reasonable opportunity to—
(1) Respond to the complaint or information; and
(2) Show that the violation has been corrected or submit an acceptable plan for correcting the violation and preventing its recurrence.
(c) The Secretary does not delay limitation, suspension, or termination procedures during the informal compliance procedure if—
(1) The delay would harm the FFEL programs; or
(2) The informal compliance procedure will not result in correction of the alleged violation.
(Authority: 20 U.S.C. 1080, 1082, 1085, 1094)
[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22457, Apr. 29, 1994]
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.