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34 CFR § 681.54 - Payment of refunds by schools.

---
identifier: "/us/cfr/t34/s681.54"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 681.54 - Payment of refunds by schools."
title_number: 34
title_name: "Education"
section_number: "681.54"
section_name: "Payment of refunds by schools."
chapter_name: "OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "681"
part_name: "HEALTH EDUCATION ASSISTANCE LOAN PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 215, Pub. L. 78-410, 58 Stat. 690, as amended, 63 Stat. 35 (42 U.S.C. 216); secs. 727-739A, Pub. L. 78-410, 90 Stat. 2243, as amended, 93 Stat. 582, 99 Stat. 529-532, 102 Stat. 3122-3125 (42 U.S.C. 294-294-1); renumbered as secs. 701-720, as amended by 106 Stat. 1994-2011 (42 U.S.C. 292-292p); sec. 525, Pub. L. 113-76, Division H, title V, transferred HEAL to the Secretary of Education effective July 1, 2014."
regulatory_source: "82 FR 53378, Nov. 15, 2017, unless otherwise noted."
cfr_part: "681"
---

# 681.54 Payment of refunds by schools.

A participating school must pay that portion of a refund that is allocable to a HEAL loan directly to the original lender (or to a subsequent holder of the loan note, if the school has knowledge of the holder's identity). At the same time, the school must provide to the borrower written notice that it is doing so.

(Approved by the Office of Management and Budget under control number 1845-0125)