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 682—FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM > SUBPART E—Federal Guaranteed Student Loan Programs (§682.500 to §682.515) > 682.509—Special conditions for filing a claim.

682.509—Special conditions for filing a claim.

(a) A lender shall cease collection activity on a loan and file a claim with the Secretary within the time specified in § 682.511(e)(3), if—
(1) In the case of a loan that was not made or originated by the school, the lender learns that while the student was enrolled at the school the school terminated its teaching activities for that student during the academic period covered by the loan; or
(2) The Secretary directs that the claim be filed.
(b) A lender may not as a result of a claim filed with the Secretary under this section report a borrower's loan as in default to any credit bureau or other third party.

Code of Federal Regulations

(Authority: 20 U.S.C. 1078-1, 1078-2, 1078-3, 1079, 1080, 1082 )