# 34 CFR § 682.704: Emergency action

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-34-682.704

## Section

- **Citation:** 34 CFR § 682.704
- **Heading:** Emergency action
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 34—Education > Subtitle B—Regulations of the Offices of the Department of 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

## 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 CFR § 682.100 § 682.100 The Federal Family Education Loan programs.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.100.md)
- [34 CFR § 682.101 § 682.101 Participation in the FFEL programs.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.101.md)
- [34 CFR § 682.102 § 682.102 Repaying a loan.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.102.md)
- [34 CFR § 682.103 § 682.103 Applicability of subparts.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.103.md)
- [34 CFR § 682.200 § 682.200 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.200.md)
- [34 CFR § 682.201 § 682.201 Eligible borrowers.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.201.md)
- [34 CFR § 682.202 § 682.202 Permissible charges by lenders to borrowers.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.202.md)
- [34 CFR § 682.203 § 682.203 Responsible parties.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.203.md)
- [34 CFR § 682.204 § 682.204 Maximum loan amounts.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.204.md)
- [34 CFR § 682.205 § 682.205 Disclosure requirements for lenders.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.205.md)
- [34 CFR § 682.208 § 682.208 Due diligence in servicing a loan.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.208.md)
- [34 CFR § 682.209 § 682.209 Repayment of a loan.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.209.md)
- [34 CFR § 682.210 § 682.210 Deferment.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.210.md)
- [34 CFR § 682.211 § 682.211 Forbearance.](https://www.frixlaw.com/law-library/statutes/ecfr-34-682.211.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-34-682.704. Check the current official text before relying on it. Not legal advice.