CFR > Title 34 - Education > SUBTITLE B—Regulations of the Offices of the Department of Education > CHAPTER VI—OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION (parts 600 to 694) > PART 674—FEDERAL PERKINS LOAN PROGRAM > SUBPART A—General Provisions (§674.1 to §674.20) > 674.17—Federal interest in allocated funds—transfer of Fund.

674.17—Federal interest in allocated funds—transfer of Fund.

(a) If an institution responsible for a Federal Perkins Loan fund closes or no longer wants to participate in the program, the Secretary directs the institution to take one of the following steps to protect the outstanding loans and the Federal interest in that Fund:
(1) A capital distribution of the liquid assets of the Fund according to section 466(c) of the Act.
(2) The assignment of the outstanding loans to the United States.
(b) An institution that assigns outstanding loans under this paragraph relinquishes its interest in those loans.

Code of Federal Regulations

(Authority: 20 U.S.C. 1087cc, 1087ff ), and (1087hh)

Code of Federal Regulations

[52 FR 45747, Dec. 1, 1987, as amended at 59 FR 61415, Nov. 30, 1994; 60 FR 61814, Dec. 1, 1995; 67 FR 67076, Nov. 1, 2002]