682.301—Eligibility of borrowers for interest benefits on Stafford and Consolidation loans.
(a) General.
(1)
To qualify for benefits on a Stafford loan, a borrower must demonstrate financial need in accordance with Part F of the Act.
(2)
The Secretary considers a member of a religious order, group, community, society, agency, or other organization who is pursuing a course of study at an institution of higher education to have no financial need if that organization—
(ii)
Requires its members to forego monetary or other support substantially beyond the support it provides; and
(3)
A Consolidation loan borrower qualifies for interest benefits during authorized periods of deferment on the portion of the loan that does not represent HEAL loans if the loan application was received by the lender—
(ii)
On or after August 10, 1993, but prior to November 13, 1997 if the loan consolidates only subsidized Stafford loans; and
(iii)
On or after November 13, 1997, for the portion of the loan that repaid subsidized FFEL loans and Direct Subsidized Loans.
(b) Application for interest benefits.
To apply for interest benefits on a Stafford loan, the student, or the school at the direction of the student, must submit a statement to the lender pursuant to § 682.603. The student must qualify for interest benefits if the eligible institution has determined and documented the student's amount of need for a loan based on the student's estimated cost of attendance, estimated financial assistance, and expected family contribution as determined under part F of the Act.
(c) Use of loan proceeds to replace expected family contribution.
A borrower may use the amount of a PLUS, unsubsidized Stafford loan, State sponsored loan, or private program loan obtained for a period of enrollment to replace the expected family contribution for that period of enrollment.
(Approved by the Office of Management and Budget under control number 1845-0020)