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UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF POSTSECONDARY EDUCATION

Issue Paper 1: Cash Management

Session 1: January 8-11, 2024

Issue: Cash Management

Statutory cites: § 498(a) of the Higher Education Act of 1965, as amended (HEA)

Regulatory cites: 34 CFR 668.162, 668.164, 668.167, and 668.168

Summary of issues:

 

The cash management regulations establish the rules and procedures institutions must follow in 

requesting, maintaining, disbursing, and otherwise managing Title IV funds. Proposals under 

consideration would create more consumer-friendly policies to ensure students have access to the aid 

they are entitled to, to cover the cost of attendance.

Proposals:

Under § 668.162, Requesting funds:

Establish a 180-day timeframe within which institutions subject to heightened cash monitoring and

receiving funds under a reimbursement payment method (HCM2) must submit their final HCM2 

requests after losing eligibility. The 180-day timeframe is tied to the Department’s late disbursement 

regulations in § 668.164. Currently, there is no timeframe for institutions to submit final claims and 

supporting documentation after losing eligibility. This leads to delays in submission and is likely to 

increase financial risk to students and taxpayers because of delays in students receiving loans not 

reflected in servicing records.

Under § 668.164, Disbursing funds:

1. Require institutions to return remaining funds from Title IV recipients’ meal plan accounts 

to students instead of “sweeping” them (§ 668.164(c)(1)(i)). Students are often encouraged 

or required to purchase meal plans from institutions, and institutions can credit Title IV 

funds toward meal plan expenses. These plans often include the use of “flex” accounts that 

can be used like cash to cover expenses at campus grocery stores, food courts, and other 

meals if students have used their allotted meals for the week. At the end of a term, 

institutions can keep any remaining funds. This creates a financial penalty for students when 

institutions sweep unused meal plan dollars that include Title IV funds. Under this proposal, 

institutions would be required to return any remaining funds no later than 14 days after the 
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end of the payment period.

2. Increase the amount of current year funds that may be credited against prior year charges

from $200 to $300 to account for inflation (§ 668.164(c)(3)). Currently, the Department 

limits the amount of current year funds that may be used for prior year charges to $200. 

This provision permits the use of Title IV funds to cover minor allowable charges in the prior 

year that would otherwise go unpaid and could prevent students from reenrolling the 

following term. This amount was established in November 2007. As the prices of goods and 

services continue to rise, the $200 limit provides less benefit than it did 15 years ago. Using 

the U.S. Bureau of Labor Statistics Consumer Price Index Inflation Calculator, the $200 

threshold established in November of 2007 would increase to approximately $286, which 

we have rounded up to $300 for simplicity. Going forward, we would adjust this amount, if 

appropriate, on a 5-year basis by publishing a notice in the Federal Register.

3. Eliminate the provision allowing institutions to include the cost of books and supplies as 

part of tuition and fees (§ 668.164(c) and (m)). Current regulations permit schools to 

automatically charge students for books and supplies as part of tuition and fees, without 

student authorization, even when the materials can be obtained from a source other than 

the institution. The regulations permit these charges if the school has a contract with a 

third-party publisher or retailer, offers the books “below competitive market rates,” and 

gives students a way to opt out, so long as the student can obtain the books and supplies by 

the seventh day of the payment period. The Department is concerned that lack of disclosure 

and transparency limits students' ability to find less expensive materials or assess if their 

school is offering the most affordable arrangement. Under the proposal, we would maintain 

the allowance for including books and supplies in tuition and fees when institutions 

demonstrate there is a compelling health or safety reason, or if the institution is the only 

option for students to access the books or supplies. 

4. Require institutions to issue a credit balance to any student that receives Title IV aid and 

has any amount of aid in excess of tuition and fees (§ 668.164(h)(1)). When a student 

receives aid from various sources, including non-Title IV financial assistance, in excess of 

allowable charges, institutions are only required to pay students a credit balance if the Title 

IV funds received exceeds the charges on the student’s account. When students pay 

amounts in excess of allowable charges but their Title IV funds received do not exceed the 

charges on a student’s account, this can result in the student not receiving a credit balance. 

This proposal would change the definition of a Title IV credit balance to also take into 

account non-Title IV sources of funding if a student receives Title IV assistance. In such 

circumstances, any funds exceeding tuition and fees would be required to be issued as a 

credit balance within 14 days of the balance occurring on the student’s account.

5. Revise regulations granting ED authority, on a case-by-case basis during the audit or 

program review processes, to direct institutions to make late disbursements beyond the 

180-day limitation (§ 668.164 (j)(4)(i)). A late disbursement is a disbursement of Title IV 

funds that occurs after a student becomes ineligible, either because they withdraw or 

because they have completed the payment period for which the disbursement was 

intended. Under the current regulations, schools may not make late disbursements more 

than 180 days after the institution determines a student withdrew or lost eligibility. There is 

no flexibility for ED to allow exceptions. However, there are occasions during audits and 
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program reviews when auditors and reviewers identify disbursement errors committed by 

the school that would justify a late disbursement to one or more students. This proposal 

would provide flexibility to consider additional information as appropriate.

6. Allow late disbursement of loan funds in any payment period regardless of whether the 

student successfully completed the period for which the loan was intended (§ 668.164 

(j)(4)(ii)). Currently, students must successfully complete the period of enrollment to receive 

a second or subsequent late disbursement of a loan. This requirement means that some 

students who are unable to complete the period of enrollment due to financial limitations 

or other reasons may not be able to access additional aid in the form of a second 

disbursement, which could lead a student to stop out. This proposal would create parity for 

students who withdraw in a first or second payment period. It also would reduce the 

complexity of return of Title IV funds (R2T4) calculations by removing an impediment to 

making post-withdrawal disbursements of Direct Loan funds.

Under § 668.167, Severability:

1. Consolidate ED regulations from program-specific regulations to cash management 

regulations related to overpayments. 

2. Establish new deadlines. To add clarity for partners and students, we propose the following 

deadlines for overpayments not tied to non-attendance (§ 668.21) or R2T4 (§ 668.22):

a. 30 calendar days. For instances of overpayment where the student is responsible, 

schools must notify the student and either receive payment in full or make 

satisfactory payment arrangements within 30 calendar days of discovery;

b. 15 calendar days. If the above 30 calendar days have elapsed and the school has 

not received the full overpayment or made satisfactory repayment arrangements, 

the school has an additional 15 calendar days to refer the overpayment to the 

Department (the total time frame thus would be 45 calendar days from discovery 

to referral); and

c. 45 calendar days. For instances of Federal student aid grant overpayments where 

the school is responsible, schools have 45 calendar days to resolve the 

overpayment.

3. Modify small balance write-offs. In applying a new adjusted rate to small write-offs, we 

propose to increase the amount for small balance write-offs for Federal Pell, TEACH, and 

FSEOG grants from $25 to $50, and for Direct Loans (loan servicers) from $25 to $100.
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Proposed Regulation Redline:

§ 668.162 (d)(3) - Heightened cash monitoring payment method

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(d) Heightened cash monitoring payment method. Under the heightened cash monitoring payment 

method, an institution must credit a student’s ledger account for the amount of title IV, HEA program 

funds that the student or parent is eligible to receive, and pay the amount of any credit balance due 

under § 668.164(h), before the institution—

(1) Submits a request for funds under the provisions of the advance payment method described 

in paragraphs (b)(1) and (2) of this section, except that the institution’s request may not exceed 

the amount of the disbursements the institution has made to the students included in that 

request; or 

(2) Seeks reimbursement for those disbursements under the provisions of the reimbursement 

payment method described in paragraph (c) of this section, except that the Secretary may

modify the documentation requirements and review procedures used to approve the 

reimbursement request.

(3) An institution that loses eligibility while on a heightened cash monitoring payment method 

must submit its final request for funds within 180 days from the date of loss of eligibility. 

Institutions must comply with any additional reporting requirements or procedures specified by 

the Secretary in relation to the submission of their final request for funds after the loss of 

eligibility. Failure to submit the final request for funds within the specified 180-day timeframe 

may result in forfeiture of the requested funds.

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§668.164 (c)(1), (2) and (3) - Crediting a student's ledger account

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(c) Crediting a student's ledger account.

(1) An institution may credit a student's ledger account with title IV, HEA program funds to pay 

for allowable charges associated with the current payment period. Allowable charges are—

(i) The amount of tuition, fees, and institutionally provided room and board 

assessed the student for the payment period or as provided in paragraph (c)(5) 

of this section, the prorated amount of those charges if the institution debits 

the student’s ledger account for more than the charges associated with the 

payment period. Any title IV, HEA program funds allocated for meal plans must 

be fully utilized for the benefit of the respective students. No institution may 

retain unused meal plan funds that were paid for with title IV, HEA program 

funds, and any remaining balance at the end of the payment period must be 
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returned to the student as soon as possible but no later than 14 days after the

end of the payment period; 

(ii) The amount incurred by the student for the payment period for purchasing 

books, supplies, and other educationally related goods and services provided 

by the institution for which the institution obtains the student's or parent's 

authorization under § 668.165(b).

(2) An institution may include the costs of books and supplies as part of tuition and fees under 

paragraph (c)(1)(i) of this section if – 

(i) The institution documents on a current basis that the books or supplies, including digital 

or electronic materials, are not available elsewhere or accessible by students enrolled in 

that program from sources other than those provided or authorized by the institution; 

or

(ii) The institution demonstrates there is a compelling health or safety reason. 

(A) Has an arrangement with a book publisher or other entity that enables it to make those 

books or supplies available to students below market competitive rates;

(B) Provides a way for a student to obtain those books and supplies by the seventh day of a 

payment period; and

(C) Has a policy under which the student may opt out of the way the institution provides for 

the student to obtain books and supplies under paragraph (c)(2). A student who opts 

out under this paragraph (c)(2) is considered to also opt out under paragraph (m)(3) of 

this section

(ii) The institution documents on a current basis that the books or supplies, including 

digital or electronic materials, are not available elsewhere or accessible by students 

enrolled in that program from sources other than those provided or authorized by the 

institution; or

(iii) The institution demonstrated there is a compelling health of safety reason.

(3) 

(i) An institution may include in one or more payment periods for the current year, prior 

year charges of not more than $200 $300 for— 

(A) Tuition, fees, and institutionally provided room and board, as provided under 

paragraph (c)(1)(i) of this section, without obtaining the student's or parent's 

authorization; and 

(B) Educationally related goods and services provided by the institution, as described in 

paragraph (c)(1)(ii) of this section if the institution obtains the student's or parent's 

authorization under § 668.165(b).
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§668.164(h)(1) - Title IV, HEA credit balances

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(h) Title IV, HEA credit balances. 

(1) A title IV, HEA credit balance occurs whenever the amount of title IV, HEA program funds 

and any other Federal or non-Federal funds, including but not limited to scholarships, 

grants, or private loans, credited to a student’s ledger account for a payment period exceeds 

the amount assessed the student for allowable charges associated with that payment period 

as provided under paragraph (c) of this section.

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§668.164 (j)(4)(i) and (ii) - Late disbursements

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(j) Late disbursements – 

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(i) An institution may not make a late disbursement later than 180 days after the date 

the institution determines that the student withdrew, as provided in § 668.22, or for a 

student who did not withdraw, 180 days after the date the student otherwise became 

ineligible, pursuant to paragraph (j)(1) of this section. However, in the event of an audit 

or program review conducted by the Department, the Secretary may, at their discretion, 

direct institutions to make late disbursements after the applicable 180-day period.

(ii) An institution may not make a late second or subsequent disbursement of a loan 

under the Direct Loan program unless the student successfully completed the period of 

enrollment for which the loan was intended.

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Note to the Committee – We propose to move the text from 668.164(l) to the newly proposed 668.167(a) 

§668.164(l) and (m) – Returning Funds and Provision for books and supplies 

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(l) Returning funds. 
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(1) Notwithstanding any State law (such as a law that allows funds to escheat to the State), an 

institution must return to the Secretary any title IV, HEA program funds, except FWS program 

funds, that it attempts to disburse directly to a student or parent that are not received by the 

student or parent. For FWS program funds, the institution is required to return only the Federal 

portion of the payroll disbursement. 

(2) If an EFT to a student's or parent's financial account is rejected, or a check to a student or 

parent is returned, the institution may make additional attempts to disburse the funds, provided 

that those attempts are made not later than 45 days after the EFT was rejected or the check 

returned. In cases where the institution does not make another attempt, the funds must be 

returned to the Secretary before the end of this 45-day period. 

(3) If a check sent to a student or parent is not returned to the institution but is not cashed, the 

institution must return the funds to the Secretary no later than 240 days after the date it issued 

the check.

(ml) Provisions for books and supplies.

(1) An institution must provide a way for a student who is eligible for title IV, HEA program funds 

to obtain or purchase, by the seventh day of a payment period, the books and supplies 

applicable to the payment period if, 10 days before the beginning of the payment period— 

(i) The institution could disburse the title IV, HEA program funds for which the student is 

eligible; and 

(ii) Presuming the funds were disbursed, the student would have a credit balance under 

paragraph (h) of this section. 

(2) The amount the institution provides to the student to obtain or purchase books and supplies 

is the lesser of the presumed credit balance under this paragraph or the amount needed by the 

student, as determined by the institution.

(3) The institution must have a policy under which the student may opt out of the way the 

institution provides for the student to obtain or purchase books and supplies under this 

paragraph (m). A student who opts out under this paragraph is considered to also opt out under 

paragraph (c)(2)(i)(C) of this section;

(4) If a student uses the method provided by the institution to obtain or purchase books and 

supplies under this paragraph, the student is considered to have authorized the use of title IV, 

HEA funds and the institution does not need to obtain a written authorization under paragraph 

(c)(1)(ii) of this section and § 668.165(b) for this purpose. 

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Notes to the Committee - 

1. We propose to rename § 668.167 from "Severability" to "Returning Funds and Overpayments"
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2. We propose to move existing severability language from current § 668.167 to a newly established §

668.169. 

3. As noted earlier we propose to we propose to move the text from § 668.164(l) to the newly proposed §

668.167(a)

4. We propose to move the text in § 690.79 (Liability for and recovery of Federal Pell Grant 

overpayments) to paragraph § 668.167 (c).

5. We propose to move the text in §668.61 (Recovery of funds from interim disbursements) to paragraph

§ 668.167 (d).

6. We propose to move the text from § 686.45 (Liability for a recovery of TEACH Grant overpayments) to 

§668.167 (e) and name the section to “TEACH Grant Overpayments”. 

7. We propose to move the text from § 673.5 (f) (Liability for and recovery of Federal Perkins loans and 

FSEOG overpayments) to § 668.167 (f) and name the section to “FSEOG Overpayments”. 

8. We propose to move the text from § 668.35 (e) to § 668.167 (h) and name the section to “FSEOG 

Overpayments”. 

§668.167 Returning Funds and Overpayments

(a) Returning funds.

(1) Notwithstanding any State law (such as a law that allows funds to escheat to the State), an 

institution must return to the Secretary any title IV, HEA program funds, except FWS program 

funds, that it attempts to disburse directly to a student or parent that are not received by the 

student or parent. For FWS program funds, the institution is required to return only the Federal 

portion of the payroll disbursement. 

(2) If an EFT to a student's or parent's financial account is rejected, or a check to a student or 

parent is returned, the institution may make additional attempts to disburse the funds, provided 

that those attempts are made not later than 45 days after the EFT was rejected or the check 

returned. In cases where the institution does not make another attempt, the funds must be 

returned to the Secretary before the end of this 45-day period. 

(3) If a check sent to a student or parent is not returned to the institution but is not cashed, the 

institution must return the funds to the Secretary no later than 240 days after the date it issued 

the check.

(b) Overpayments timelines.

(1) For overpayments for which the student is responsible and that are not tied to nonattendance or return of title IV, HEA funds, institutions must promptly send a written notice to 

the student requesting repayment of the overpayment amount. Institutions have 30 calendar 

days from the date the notice is sent to—
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(i) Recover the overpayment in full; or

(ii) Enter into a repayment arrangement with the student that is satisfactory to the 

institution.

(2) If the initial 30 calendar days have elapsed and the institution has not received the full 

overpayment or made satisfactory repayment arrangements, the institution has 15 calendar days 

to—

(i) Report the overpayment to NSLDS; and

(ii) Refer the overpayment to the Department. 

(3) For FSA grant overpayments for which the institution is responsible, institutions have 45 

calendar days from the date of discovery to—

(i) For FSEOG, restore to the institution’s FSEOG account an amount equal to the 

overpayment plus any administrative cost allowance claimed on the overpayment; and

(ii) For Federal Pell Grant and TEACH grant overpayments, make the appropriate 

downward adjustment to the student’s award in the COD system and either return the 

funds through G5 or disburse them to other eligible students.

(4) For interim disbursement overpayments for which the institution is responsible and that are 

not recovered by reducing subsequent disbursements to students for the award year, 

institutions have 45 calendar days to make restitution to the appropriate account.

(c) Liability for and recovery of Federal Pell Grant overpayments.

(1) Except as provided in paragraphs (c)(2) and (3) of this section, a student is liable for any 

Federal Pell Grant overpayment made to them. 

(2) The institution is liable for a Federal Pell Grant overpayment if the overpayment occurred 

because the institution failed to follow the procedures in this part or 34 CFR part 668. The 

institution must restore an amount equal to the overpayment to its Federal Pell Grant account. 

(3) A student is not liable for, and the institution is not required to attempt recovery of or refer to 

the Secretary, a Federal Pell Grant overpayment if the amount of the overpayment is less than 

$50 and is not a remaining balance. 

(4) Except as provided in paragraph (c)(3) of this section, if an institution makes a Federal Pell 

Grant overpayment for which it is not liable, it must promptly send a written notice to the 

student requesting repayment of the overpayment amount. The notice must state that failure to 

make that repayment, or to make arrangements satisfactory to the holder of the overpayment 

debt to repay the overpayment, makes the student ineligible for further title IV, HEA program 

funds until final resolution of the Federal Pell Grant overpayment. 
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(5) If a student objects to the institution's Federal Pell Grant overpayment determination on the 

grounds that it is erroneous, the institution must consider any information provided by the 

student and determine whether the objection is warranted. 

(6) Except as provided in paragraph (c)(3) of this section, if the student fails to repay a Federal 

Pell Grant overpayment or make arrangements satisfactory to the holder of the overpayment 

debt to repay the Federal Pell Grant overpayment, after the institution has taken the action 

required by paragraphs (c)(4) and (5) of this section, the institution must refer the overpayment 

to the Secretary for collection purposes in accordance with procedures required by the Secretary. 

After referring the Federal Pell Grant overpayment to the Secretary under this section, the 

institution need make no further efforts to recover the overpayment.

(d) Recovery of funds from interim disbursements.

(1) If an institution discovers, as a result of verification, that an applicant received under § 

668.58(a)(2)(i)(B) more financial aid than the applicant was eligible to receive, the institution 

must eliminate the Federal Pell Grant or FSEOG overpayment by—

(i) Adjusting subsequent disbursements in the award year in which the overpayment 

occurred; or 

(ii) Reimbursing the appropriate program account by—

(A) Requiring the applicant to return the overpayment to the institution if the institution 

cannot correct the overpayment under paragraph (d)(1) of this section; or 

(B) Making restitution from its own funds, by the deadline specified in paragraph (b)(4)

of this section. 

(2) If an institution discovers, as a result of verification, that an applicant received under § 

668.58(a)(2)(ii) more financial aid than the applicant was eligible to receive, the institution must 

eliminate the FWS overpayment by—

(i) Adjusting the applicant's other financial aid; or 

(ii) Reimbursing the FWS program account by making restitution from its own funds if 

the institution cannot correct the overpayment under paragraph (d)(2)(i) of this section. 

The applicant must still be paid for all work performed under the institution's own 

payroll account. 

(3) If an institution disbursed subsidized student financial assistance to an applicant under § 

668.58(a)(3) and did not receive the valid SAR or valid ISIR reflecting corrections within the 

deadlines established under § 668.60, the institution must reimburse the appropriate program 

account by making restitution from its own funds. The applicant must still be paid for all work 

performed under the institution's own payroll account.

(e) TEACH Grant overpayments.
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(1) Except as provided in paragraphs (e)(2) and (e)(3) of this section, a student is liable for any 

TEACH Grant overpayment made to them. 

(2) The institution is liable for a TEACH Grant overpayment if the overpayment occurred because 

the institution failed to follow the procedures in this part or in 34 CFR part 668. The institution 

must restore an amount equal to the overpayment to its TEACH Grant account. 

(3) A student is not liable for, and the institution is not required to attempt recovery of or refer

to the Secretary, a TEACH Grant overpayment if the amount of the overpayment is less than $25

$50 and is not a remaining balance. 

(4) Except as provided in paragraph (e)(3) of this section, if an institution makes a TEACH Grant 

overpayment for which it is not liable, it must promptly send a written notice to the student 

requesting repayment of the overpayment amount. The notice must state that failure to make 

the requested repayment, or to make arrangements satisfactory to the holder of the 

overpayment debt to repay the overpayment, makes the student ineligible for further title IV, 

HEA program funds until final resolution of the TEACH Grant overpayment. 

(5) If a student objects to the institution's TEACH Grant overpayment determination, the 

institution must consider any information provided by the student and determine whether the 

objection is warranted. 

(6) Except as provided in paragraph (e)(3) of this section, if the student fails to repay a TEACH 

Grant overpayment or make arrangements satisfactory to the holder of the overpayment debt 

to repay the TEACH Grant overpayment, after the institution has taken the action required by 

paragraphs (e)(4) and (5) of this section, the institution must refer the overpayment to the 

Secretary for collection in accordance with procedures required by the Secretary. After referring 

the TEACH Grant overpayment to the Secretary under this section, the institution need make no 

further efforts to recover the overpayment.

(f) FSEOG overpayments. 

(1) Except as provided in paragraphs (f)(2) and (3) of this section, a student is liable for any 

FSEOG overpayment made to them. An FSEOG overpayment for purposes of this paragraph does 

not include the non-Federal share of an FSEOG award if an institution meets its FSEOG matching 

share by the individual recipient method or the aggregate method. 

(2) The institution is liable for an FSEOG overpayment if the overpayment occurred because the 

institution failed to follow the procedures in this part or 34 CFR parts 668, 674, or 676. The 

institution must restore an amount equal to the overpayment and any administrative cost 

allowance claimed on that amount to its FSEOG account for an FSEOG overpayment. 

(3) A student is not liable for, and the institution is not required to attempt recovery of an 

FSEOG overpayment, nor is the institution required to refer an FSEOG overpayment to the 

Secretary, if the overpayment— 

(i) Is less than $25 $50; and 
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(ii) Is neither a remaining balance nor a result of the application of the overaward

threshold in § 673.5(d). 

(4) Except as provided in paragraph (f)(3) of this section, if an institution makes an FSEOG 

overpayment for which it is not liable, it must promptly send a written notice to the student 

requesting repayment of the overpayment amount. The notice must state that failure to make 

that repayment, or to make arrangements satisfactory to the holder of the overpayment debt to 

pay the overpayment, makes the student ineligible for further title IV, HEA program funds until 

final resolution of the overpayment. 

(5) If a student objects to the institution's FSEOG overpayment determination on the grounds 

that it is erroneous, the institution must consider any information provided by the student and 

determine whether the objection is warranted. 

(6) Except as provided in paragraph (f)(3) of this section, if a student fails to repay an FSEOG 

overpayment or make arrangements satisfactory to the holder of the overpayment debt to 

repay the FSEOG overpayment after the institution has taken the action required by paragraph 

(f)(4) of this section, the institution must refer the FSEOG overpayment to the Secretary for 

collection purposes in accordance with procedures required by the Secretary. After referring the 

FSEOG overpayment to the Secretary under this section, the institution need make no further 

effort to recover the overpayment.

(g) Direct Loan overpayments. 

(1) A student is not liable for, and the institution is not required to attempt recovery of, a Direct 

Loan overpayment if the amount is less than $100 and is not a remaining balance. Federal 

student loan servicers and lenders must write-off totals for borrowers (principal + interest) of 

$100 or less after 30 days.

(h) Student overpayment debts. 

(1) Except as provided in 34 CFR 668.22(h), a student who receives an overpayment under a title 

IV, HEA grant program may nevertheless be eligible to receive title IV, HEA program assistance 

if— 

(i) The student pays the overpayment in full; 

(ii) The student makes arrangements satisfactory to the holder of the overpayment debt 

to pay the overpayment; 

(iii) The overpayment amount is less than $25 $50 and is neither a remaining balance 

nor a result of the application of the overaward threshold in 34 CFR 673.5(d); or 

(iv) The overpayment is an amount that a student is not required to return under § 

668.22(h)(3)(ii)(B).

*****
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Note to the committee – as noted earlier we propose to move existing severability language from current 

§668.167 to a newly established §668.168. 

§668.168 Severability 

If any provision of this subpart or its application to any person, act, or practice is held invalid, the 

remainder of the section or the application of its provisions to any person, act, or practice shall not be 

affected thereby.