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Citations: (R)682.610 AsOfDate: 12/31/95

Administrative and fiscal requirements for participating schools. (a) General. Each school shall-(1) Establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in the regulations in this part and in 34 CFR part 668 in order to-(i) Protect the rights of student and parent borrowers; (ii) Protect the United States from unreasonable risk of loss; and (iii) Comply with specific requirements in those regulations; and (2) Submit all reports required by this part and 34 CFR part 668 to the Secretary. (b) Loan record requirements. In addition to records required by 34 CFR part 668, for each Stafford, SLS, and PLUS loan received under this part by or on behalf of its students, a school shall maintain a copy of the loan application or data electronically submitted to the lender which can, upon request, produce a hard copy record of-(1) The name of the lender; (2) The address of the lender; (3) The amount of the loan and the period of enrollment for which the loan was intended; (4) The data used to construct an individual student budget or the school's itemized standard budget used in calculating the student's estimated cost of attendance; (5) The sources and amounts of financial assistance available to the student that the school used in determining the student's estimated financial assistance for the loan period in accordance with Sec. 682.200; (6) The amount of the student's tuition and fees paid for the loan period and the date the student paid the tuition and fees; (7) The amount and basis of its calculation of any refund paid to or on behalf of a student; (8) In the case of a Stafford loan for which the borrower applies for interest benefits under Sec. 682.301, the data used to determine the student's expected family contribution and the corresponding certification by the school to the lender; (9) In the case of a Stafford or SLS loan-(i) The date the school received each loan disbursement and the amount of that disbursement;

(ii) The date the school endorsed each loan check; (iii) The date or dates of transmittal of the loan proceeds by the school to the student; and (iv) For loans delivered by electronic funds transfer, a copy of the student's written authorization required under Sec. 682.604(c)(3) to transfer the initial and subsequent disbursements of each FFEL program loan; (10) The student's job placement, if known; and (11) Any other matter for which a record would be required for the school to be able to document its compliance with applicable requirements with respect to the loan. (c) Student status confirmation reports. A school shall-(1) Upon receipt of a student status confirmation report form from the Secretary or a similar student status confirmation report form from any guaranty agency, complete and return that report within 30 days of receipt to the Secretary or the guaranty agency, as appropriate; and (2) Unless it expects to submit its next student status confirmation report to the Secretary or the guaranty agency within the next 60 days, notify the guaranty agency or lender within 30 days-(i) If it discovers that a Stafford, SLS, or PLUS loan has been made to or on behalf of a student who enrolled at that school, but who has ceased to be enrolled on at least a half-time basis; (ii) If it discovers that a Stafford, SLS, or PLUS loan has been made to or on behalf of a student who has been accepted for enrollment at that school, but who failed to enroll on at least a half-time basis for the period for which the loan was intended; or (iii) If it discovers that a Stafford, SLS, or PLUS loan has been made to or on behalf of a full-time student who has ceased to be enrolled on a full-time basis. (d) Record retention requirements. Unless otherwise directed by the Secretary, the school or its successors-(1)(i) Shall keep all records required under the regulations in this part for five years following the last day of the borrower's attendance at the school; (2) Shall keep for five years after completion copies of reports and other forms used by the school relating to the Stafford, SLS, or PLUS programs; (3) Shall keep all records involved in any loan, claim, or expenditure questioned by a Federal audit until resolution of any audit questions. (4) Shall provide in the event of the school's closure, termination, suspension, or change in ownership resulting in a change of control as described in 34 CFR part 600 for the retention of the records and reports required by the regulations in this part and for access by the Secretary or the Secretary's authorized representatives to those records and reports for inspection and copying; and (5) May keep records and copies of reports on microfilm, optical disk, or in other machine readable format. (e) Inspection requirements. Upon request, a school or its agent shall cooperate with an independent auditor, the Secretary, any guaranty agency, the Department's Office of the Inspector General, and the Comptroller General of the United States, or their authorized representatives, in the conduct of

audits, investigations, and program reviews authorized by law. This cooperation must include-(1) Providing timely access for examination and copying to the records (including computerized records) required by the applicable regulations and to any other pertinent books, documents, papers, computer programs, and records; and (2) Providing reasonable access to institutional personnel associated with the institution's administration of the Title IV, HEA programs for the purpose of obtaining relevant information. In providing reasonable access, the institution may not-(i) Refuse to supply any relevant information; (ii) Refuse to permit interviews with those personnel without the presence of representatives of the institution's management; and (iii) Refuse to permit interviews with those personnel unless they are recorded by the institution. (f) Information sharing. (1) Upon request of the Secretary, a lender, or a guaranty agency, a school promptly shall provide a lender or guaranty agency with any information the school has respecting the last known address, surname, employer, and employer address of a borrower who attends or has attended the school. (2) If the school discovers that a student who is enrolled and who has received a Stafford or SLS loan has changed his or her permanent address, the school shall notify the holder of the loan within 30 days thereafter, either directly or through the guaranty agency. (Authority: 20 U.S.C. 1078, 1078-1, 1078-2, 1082, 1094) (Approved by the Office of Management and Budget under control number 1840-0538)