# 34 C.F.R. § 682.704 (2026): Emergency action

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_704

## Section

- **Citation:** 34 C.F.R. § 682.704 (2026)
- **Heading:** Emergency action
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** 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 / § 682.704: § 682.704   Emergency action.

## Text

(a) The Secretary, or a designated Departmental official, may take emergency action to withhold payment of interest benefits and special allowance to a lender if the Secretary—
(1) Receives reliable information that the lender or a third-party servicer with which the lender contracts is 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 pertaining to the lender's portfolio of loans;
(2) Determines that immediate action is necessary to prevent the likelihood of substantial losses by the Federal Government, parent borrowers, or students; and
(3) Determines that the likelihood of loss exceeds the importance of following the procedures for limitation, suspension, or termination.
(b) The Secretary begins an emergency action by notifying the lender or third-party servicer, by certified mail, return receipt requested, of the action and the basis for the action.
(c) The action becomes effective on the date the notice is mailed to the lender or third-party servicer.
(d)(1) An emergency action does not exceed 30 days unless a limitation, suspension, or termination proceeding is begun before that time expires.
(2) If a limitation, suspension, or termination proceeding is begun before the expiration of the 30-day period—
(i) The emergency action may be extended until completion of the proceeding, including any appeal to the Secretary; and
(ii) Upon the written request of the lender or third-party servicer, the Secretary may provide the lender or servicer with an opportunity to demonstrate that the emergency action is unwarranted.
(Authority: 20 U.S.C. 1080, 1082, 1085, 1094)
[57 FR 60323, Dec. 18, 1992, as amended at 59 FR 22457, Apr. 29, 1994; 78 FR 65822, Nov. 1, 2013]

## Nearby sections

- [34 C.F.R. § 682.700 (2026) § 682.700   Purpose and scope.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_700.md)
- [34 C.F.R. § 682.701 (2026) § 682.701   Definitions of terms used in this subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_701.md)
- [34 C.F.R. § 682.702 (2026) § 682.702   Effect on participation.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_702.md)
- [34 C.F.R. § 682.703 (2026) § 682.703   Informal compliance procedure.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_703.md)
- [34 C.F.R. § 682.704 (2026) § 682.704   Emergency action.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_704.md)
- [34 C.F.R. § 682.705 (2026) § 682.705   Suspension proceedings.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_705.md)
- [34 C.F.R. § 682.706 (2026) § 682.706   Limitation or termination proceedings.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_706.md)
- [34 C.F.R. § 682.707 (2026) § 682.707   Appeals in a limitation or termination proceeding.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_707.md)
- [34 C.F.R. § 682.708 (2026) § 682.708   Evidence of mailing and receipt dates.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_708.md)
- [34 C.F.R. § 682.709 (2026) § 682.709   Reimbursements, refunds, and offsets.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_709.md)
- [34 C.F.R. § 682.710 (2026) § 682.710   Removal of limitation.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_710.md)
- [34 C.F.R. § 682.711 (2026) § 682.711   Reinstatement after termination.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_711.md)
- [34 C.F.R. § 682.712 (2026) § 682.712   Disqualification review of limitation, suspension, and termination actions taken by guarantee agencies against lenders.](https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_712.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T34_P682_S682_704. Check the current official text before relying on it. Not legal advice.