34 CFR § 685.306 - Payment of a refund or return of title IV, HEA program funds to the Secretary.

---
identifier: "/us/cfr/t34/s685.306"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 685.306 - Payment of a refund or return of title IV, HEA program funds to the Secretary."
title_number: 34
title_name: "Education"
section_number: "685.306"
section_name: "Payment of a refund or return of title IV, HEA program funds to the Secretary."
chapter_name: "OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "685"
part_name: "WILLIAM D. FORD FEDERAL DIRECT LOAN 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. 1070g, 1087a,  unless otherwise noted."
regulatory_source: "59 FR 61690, Dec. 1, 1994, unless otherwise noted."
cfr_part: "685"
---


# 685.306 Payment of a refund or return of title IV, HEA program funds to the Secretary.

(a) *General.* By applying for a Direct Loan, a borrower authorizes the school to pay directly to the Secretary that portion of a refund or return of title IV, HEA program funds from the school that is allocable to the loan. 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 Direct Loan to the Secretary; and

(2) Must provide simultaneous writ-ten notice to the borrower if the school pays a refund or return of title IV, HEA program funds to the Secretary on be-half of that student.

(b) *Determination, allocation, and payment of a refund or return of title IV, HEA program funds.* In determining the portion of a student's refund or return of title IV, HEA program funds that is allocable to a Direct Loan, the school must follow the procedures established in 34 CFR 668.22 for allocating and paying a refund or return of title IV, HEA program funds that is due.

(Authority: 20 U.S.C. 1087a )

[64 FR 59044, Nov. 1, 1999; 65 FR 37045, June 13, 2000, as amended at 78 FR 65841, Nov. 1, 2013]