Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 34 - Education |
Subtitle A - Office of the Secretary, Department of Education |
Part 30 - Debt Collection |
Subpart F - What Requirements Apply to the Compromise of a Debt or the Suspension or Termination of Collection Action? |
§ 30.70 - How does the Secretary exercise discretion to compromise a debt or to suspend or terminate collection of a debt?
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§ 30.70 How does the Secretary exercise discretion to compromise a debt or to suspend or terminate collection of a debt?
b) The Secretary refers a debt to the Department of Justice to decide whether to compromise a debt if -(a)
4 103(1) The Secretary uses the standards in the FCCS,
-902, to determine whether compromise of a debt is appropriate if
(2) The amount of the debt is less than or equal to $20,000 and the Secretary does not follow the procedures in paragraph (e(1) The debt must be referred to the Department of Justice under this section; or
the debt arises under a program administered by the Department, unless compromise of the debt is subject to paragraph (b) of this section.
(
(1) The debt was incurred under a program or activity subject to section 452(f) of the General Education Provisions Act and the initial determination of the debt was more than $50,000; or
(2) The debt was incurred under a program or activity not subject to section 452(f) of the General Education Provisions Act and the amount of the debt is more than $20,000.
(d) The Secretary may compromise a debt without following the procedure(c) The Secretary may compromise the debt under the procedures in paragraph (e) of this section if -
(1) The debt was incurred under a program or activity subject to section 452(f) of the General Education Provisions Act; and
(2) The initial determination of the debt was less than or equal to $50,000.
if the amount of the debt is less than or equal to $20,0002) If the amount of the debt is more than $100,000, or such higher amount as the Department of Justice may prescribe, the Secretary refers a proposed compromise of the debt to the Department of Justice for approval, unless the compromise is subject to paragraph (b) of this section or the debt is one described in paragraph (e) of this section
.
e) The Secretary may compromise the debt pursuant to paragraph (c) of this section if -(
(1) The Secretary determines that -
(i) Collection of any or all of the debt would not be practical or in the public interest; and
(ii) The practice that resulted in the debt has been corrected and will not recur;
(2) At least 45 days before compromising the debt, the Secretary publishes a notice in the Federal Register stating -
(i) The Secretary's intent to compromise the debt; and
(ii) That interested persons may comment on the proposed compromise; and
(f(3) The Secretary considers any comments received in response to the Federal Register notice before finally compromising the debt.
b) Under the provisions in 34 CFR 81.36, the Secretary may enter into certain compromises of debts arising because a recipient of a grant or cooperative agreement under an applicable Department program has spent some of these funds in a manner that is not allowable. For purposes of this section, neither a program authorized under the Higher Education Act of 1965, as amended (HEA), nor the Impact Aid Program is an applicable Department program.
4 104(c)
(1) The Secretary uses the standards in the FCCS,
The Secretary - (903, to determine whether suspension or termination of collection action on a debt is appropriate.
(2)
$20Except as provided in paragraph (e), the Secretary—
(i) Refers the debt to the Department of Justice to decide whether to suspend or terminate collection action if the amount of the debt outstanding at the time of the referral is more than
decide to$100,000 or such higher amount as the Department of Justice may prescribe; or
(ii) May
decision issuspend or terminate collection action if the amount of the debt outstanding at the time of the Secretary's
$20determination that suspension or termination is warranted is less than or equal to
$100,000 or such higher amount as the Department of Justice may prescribe.
g(
paragraphs throughd) In determining the amount of a debt under
f, (
b), or (c) of this section, the Secretary deducts any partial payments or recoveries already received, and excludes interest, penalties, and administrative costs.
hparagraphs(
Notwithstandinge)
b(
through1)
fSubject to paragraph (
,e)(2) of this section, under the provisions of 31 CFR part 902 or 903, the Secretary may compromise a debt in any amount, or suspend or terminate collection of a debt
Guaranteed Studentin any amount, if the debt arises under the
Higher Education Act of 1965, as amended,Federal Family Education Loan Program authorized under title IV, part B, of the
Higher Education Act of 1965, as amended. (iHEA, the William D. Ford Federal Direct Loan Program authorized under title IV, part D of the HEA, or the Perkins Loan Program authorized under title IV, part E, of the
HEA.
(2) The Secretary refers a proposed compromise, or suspension or termination of collection, of a debt that exceeds $1,000,000 and that arises under a loan program described in paragraph (e)(1) of this section to the Department of Justice for review. The Secretary does not compromise, or suspend or terminate collection of, a debt referred to the Department of Justice for review until the Department of Justice has provided a response to that request.
General Accounting(f) The Secretary refers a proposed resolution of a debt to the
for litigation if -Government Accountability Office (GAO) for review and approval before referring the debt to the Department of Justice
if—
(1) The debt arose from an audit exception taken by GAO to a payment made by the Department; and
(2) The GAO has not granted an exception from the GAO referral requirement.
j(
precludes -g) Nothing in this section
precludes—
(1) A contracting officer from exercising his authority under applicable statutes, regulations, or common law to settle disputed claims relating to a contract; or
(2) The Secretary from redetermining a claim.
(h) Nothing in this section authorizes the Secretary to compromise, or suspend or terminate collection of, a debt—
(1) Based in whole or in part on conduct in violation of the antitrust laws; or
(2) Involving fraud, the presentation of a false claim, or misrepresentation on the part of the debtor or any party having an interest in the claim.