30.70—How does the Secretary exercise discretion to compromise a debt or to suspend or terminate collection of a debt?
(a)
The Secretary uses the standards in the FCCS, 4 CFR part 103, 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) of this section.
(b)
The Secretary refers a debt to the Department of Justice to decide whether to compromise a debt if—
(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.
(1)
The debt was incurred under a program or activity subject to section 452(f) of the General Education Provisions Act; and
(d)
The Secretary may compromise a debt without following the procedure in paragraph (e) of this section if the amount of the debt is less than or equal to $20,000.
(2)
At least 45 days before compromising the debt, the Secretary publishes a notice in the Federal Register stating—
(3)
The Secretary considers any comments received in response to the Federal Register notice before finally compromising the debt.
(f)
(1)
The Secretary uses the standards in the FCCS, 4 CFR part 104, to determine whether suspension or termination of collection action is appropriate.
(i)
Refers the debt to the Department of Justice to decide whether to suspend or terminate collection action if the amount of the debt at the time of the referral is more than $20,000; or
(ii)
May decide to suspend or terminate collection action if the amount of the debt at the time of the Secretary's decision is less than or equal to $20,000.
(g)
In determining the amount of a debt under paragraphs (a) through (f) of this section, the Secretary excludes interest, penalties, and administrative costs.
(h)
Notwithstanding paragraphs (b) through (f) of this section, the Secretary may compromise a debt, or suspend or terminate collection of a debt, in any amount if the debt arises under the Guaranteed Student Loan Program authorized under title IV, part B, of the Higher Education Act of 1965, as amended, or the Perkins Loan Program authorized under title IV, part E, of the Higher Education Act of 1965, as amended.
(i)
The Secretary refers a debt to the General Accounting Office (GAO) for review and approval before referring the debt to the Department of Justice for litigation if—
(1)
A contracting officer from exercising his authority under applicable statutes, regulations, or common law to settle disputed claims relating to a contract; or