Section 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: View Image
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.52 FR 45758, Dec. 1, 1987. Redesignated and amended at 59 FR 61413, 61415, Nov. 30, 1994 Authority: 20 U.S.C. 428 and 1087ee