34 CFR § 682.213 - Prohibition against the use of the Rule of 78s.
---
identifier: "/us/cfr/t34/s682.213"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 682.213 - Prohibition against the use of the Rule of 78s."
title_number: 34
title_name: "Education"
section_number: "682.213"
section_name: "Prohibition against the use of the Rule of 78s."
chapter_name: "OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "682"
part_name: "FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "20 U.S.C. 1071-1087-4, unless otherwise noted."
regulatory_source: "57 FR 60323, Dec. 18, 1992, unless otherwise noted."
cfr_part: "682"
---
# 682.213 Prohibition against the use of the Rule of 78s.
For purposes of the calculations required by this part, a lender may not use the Rule of 78s to calculate the outstanding principal balance of a loan, except for a loan made to a borrower who entered repayment before June 26, 1987 and who was informed in the promissory note that interest on the loan would be calculated using the Rule of 78s. For those loans, the Rule of 78s must be used for the life of the loan.
(Authority: 20 U.S.C. 1077, 1078, 1078-1, 1078-2, 1078-3, 1082)
[57 FR 60323, Dec. 18, 1992, as amended at 68 FR 75429, Dec. 31, 2003]