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 D—Loan Cancellation (§674.51 to §674.64) > 674.63—Reimbursement to institutions for loan cancellation.

674.63—Reimbursement to institutions for loan cancellation.

(a) Reimbursement for Defense loan cancellation. (1) The Secretary pays an institution each award year its share of the principal and interest canceled under §§ 674.55 and 674.59(a).
(2) The institution's share of cancelled principal and interest is computed by the following ratio:

Code of Federal Regulations

[Please see PDF for image: EC15NO91.027 ]
Where I is the institution's capital contribution to the Fund, and F is the Federal capital contribution to the Fund.
(b) Reimbursement for NDSL and Federal Perkins loan cancellation. The Secretary pays an institution each award year the principal and interest canceled from its student loan fund under §§ 674.53, 674.54, 674.56, 674.57, 674.58, 674.59(b), and 674.60. The institution shall deposit this amount in its Fund.

Code of Federal Regulations

(Authority: 20 U.S.C. 428 and 1087ee )

Code of Federal Regulations

[52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994]