34 CFR § 682.607 - Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.

---
identifier: "/us/cfr/t34/s682.607"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 682.607 - Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal."
title_number: 34
title_name: "Education"
section_number: "682.607"
section_name: "Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal."
chapter_name: "OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "682"
part_name: "FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
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"
---


# 682.607 Payment of a refund or a return of title IV, HEA program funds to a lender upon a student's withdrawal.

(a) *General.* By applying for a FFEL loan, a borrower authorizes the school to pay directly to the lender that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan upon the borrower's withdrawal. A school—

(1) Must pay that portion of the student's refund or return of title IV, HEA program funds that is allocable to a FFEL loan to—

(i) The original lender; or

(ii) A subsequent holder, if the loan has been transferred and the school knows the new holder's identity; and

(2) Must provide simultaneous written notice to the borrower if the school makes a payment of a refund or a return of title IV, HEA program funds to a lender on behalf of that student.

(b) *Allocation of a refund or returned title IV, HEA program funds.* In determining the portion of a refund or the return of title IV, HEA program funds upon a student's withdrawal for an academic period that is allocable to a FFEL loan received by the borrower for that academic period, the school must follow the procedures established in part 668 for allocating a refund or return of title IV, HEA program funds.

(c) *Timely payment.* A school must pay a refund or a return of title IV, HEA program funds that is due in accordance with the timeframe in § 668.22(j).

(Authority: 20 U.S.C. 1077, 1078, 1078-1, 1078-2, 1082, 1094)

[64 FR 59043, Nov. 1, 1999]