34 C.F.R. § 682.102

Repaying a loan

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(a) General. Generally, the borrower is obligated to repay the full amount of the loan, late fees, collection costs chargeable to the borrower, and any interest not payable by the Secretary. The borrower's obligation to repay is cancelled if the borrower dies, becomes totally and permanently disabled, or has that obligation discharged in bankruptcy. A parent borrower's obligation to repay a PLUS loan is cancelled if the student, on whose behalf the parent borrowed, dies. The borrower's or student's obligation to repay all or a portion of his or her loan may be cancelled if the student is unable to complete his or her program of study because the school closed or the borrower's or student's eligibility to borrow was falsely certified by the school. The obligation to repay all or a portion of a loan may be forgiven for Stafford Loan borrowers who enter certain areas of the teaching profession.

(b) Stafford loan repayment. In the case of a subsidized Stafford loan, a borrower is not required to make any principal payments during the time the borrower is in school. The Secretary pays the interest on the borrower's behalf during the time the borrower is in school. When the borrower ceases to be enrolled on at least a half-time basis, a grace period begins during which no principal payments are required, and the Secretary continues to make interest payments on the borrower's behalf. In the case of an unsubsidized Stafford loan, the borrower is responsible for interest during these periods. At the end of the grace period, the repayment period begins. During the repayment period, for the subsidized and unsubsidized Stafford loan, the borrower pays both the principal and the interest accruing on the loan.

(c) SLS loan repayment. Generally, the repayment period for an SLS loan begins immediately on the day of the last disbursement of the loan proceeds by the lender. The first payment of principal and interest on an SLS loan is due from the borrower within 60 days after the loan is fully disbursed unless a borrower who is also a Stafford loan borrower, but who has not yet entered repayment on the Stafford loan, requests that commencement of repayment on the SLS loan be deferred until the borrower's grace period on the Stafford loan expires.

(d) PLUS loan repayment. Generally, the repayment period for a PLUS loan begins on the day the loan is fully disbursed by the lender. The first payment of principal and interest on a PLUS loan is due from the borrower within 60 days after the loan is fully disbursed.

(e) Consolidation loan repayment. Generally, the repayment period for a Consolidation loan begins on the day the loan is disbursed. The first payment of principal and interest on a Consolidation loan is due from the borrower within 60 days after the borrower's liability on all loans being consolidated has been discharged.

(f) Deferment of repayment. Repayment of principal on a FFEL program loan may be deferred under the circumstances described in § 682.210.

(g) Default. If a borrower defaults on a loan, the guarantor reimburses the lender for the amount of its loss. The guarantor then collects the amount owed from the borrower.

(Approved by the Office of Management and Budget under control number 1845-0020) (Authority: 20 U.S.C. 1071 to 1087-2) [57 FR 60323, Dec. 18, 1992, as amended at 59 FR 25744, May 17, 1994; 59 FR 33348, June 28, 1994; 64 FR 18975, Apr. 16, 1999; 64 FR 58952, Nov. 1, 1999; 68 FR 75428, Dec. 31, 2003; 71 FR 45698, Aug. 9, 2006; 78 FR 65806, Nov. 1, 2013]

Notes of Decisions

Cited in 20 cases (6 in the last 5 years), 1985–2023 · leading case: Chae v. SLM Corp., 593 F.3d 936 (9th Cir. 2010).

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Chae v. SLM Corp., 593 F.3d 936 (9th Cir. 2010). “34 C.F.R. § 682.102 (e)(7) (“If a borrower defaults on a loan, the guarantor reimburses the lender for the amount of its loss.”

Jackson v. Culinary Sch. of Washington, 788 F. Supp. 1233 (D.D.C. 1992). · cites it 2× “See 34 C.F.R. § 682.102 (a) (1986). However, the school must certify the application before it is forwarded to the private lender.”

Coll. Loan Corp. v. SLM Corp., 396 F.3d 588 (4th Cir. 2005). · cites it 2× “; see also 34 C.F.R. § 682.102 (d) (2004). 4 Collectively, these requirements constitute what is known as the “Single Holder Rule.”

April Brannan v. United Student Aid Funds, Inc., 94 F.3d 1260 (9th Cir. 1996). “” 34 C.F.R. § 682.102 (c)(4) (1991). .Brannan also sought a declaratory judgment regarding USA Funds’ ability to recover collection costs that were calculated as a percentage of the debt.”

Citizens Sav. Bank v. Bell, 605 F. Supp. 1033 (D.R.I. 1985). “§§ 1079-1082 ; 34 C.F.R. § 682.102 . A lender may participate simultaneously in the FISL and in one or more of the GAP programs.”

Graham v. Sec. Sav. & Loan, 125 F.R.D. 687 (N.D. Ind. 1989). “); 34 C.F.R. § 682.102 (c); U.S. v. Dold, 462 F.”

Peete-Bey v. Educ. Credit Mgmt. Corp., 131 F. Supp. 3d 422 (D. Maryland 2015). “See 34 C.F.R. §§ 682.102 (g), 682.410(b)(5)(vi)(A), 682.”

Tipton v. Sec'y of Educ. of the United States, 768 F. Supp. 540 (S.D.W. Va 1991). “§ 1087 (a), (b), and 34 C.F.R. § 682.102 (c). The Graham court stated: There is no dispute that the plaintiffs received guaranteed student loans to help finance their education through the guaranteed student loan program which is governed by the Higher Education Act.”

Armstrong v. Accrediting Council for Continuing Educ. & TrainIng, Inc., 832 F. Supp. 419 (D.D.C. 1993). “See 34 C.F.R. § 682.102 (a). However, Congress has mandated that the school participate in the lending process first by certifying the application and then by forwarding it to a private lender.”

Ascendium Educ. Solutions, Inc. v. Miguel Cardona, 78 F.4th 470 (D.C. Cir. 2023). “4 for the amount of its loss,” 34 C.F.R. § 682.102 (g), and the guarantor begins the process of trying to collect the money owed by the borrower, id.”

Charles R. Estes, et al. v. P ECMC Grp., Inc., 2021 DNH 117 (D.N.H. 2021). “See 34 C.F.R. § 682.102 (g) (“If a borrower defaults on a loan, the guarantor reimburses the lender for the amount of its loss.”

Biegler v. Educ. Credit Mgmt. Corp. (In re Biegler), 586 B.R. 388 (Bankr. N.D.N.Y. 2018). · cites it 2× “34 C.F.R. § 682.102 , 34 C.F.R. §§ 682.209 (a)(2)(ii-iii).”

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