Source: https://www.law.cornell.edu/cfr/text/34/668.163
Timestamp: 2015-11-30 22:36:35
Document Index: 312451508

Matched Legal Cases: ['art 668', '§ 668', '§ 674', '§ 668', '§ 668', '§ 674', '§ 668', '§ 1001', '§ 1002', '§ 1003', '§ 1070', '§ 1085', '§ 1088', '§ 1091', '§ 1092', '§ 1094', '§ 1099', '§ 1099', 'art 668', '§ 668', '§ 668', '§ 668', 'art 668', 'arts 668', 'arts 668']

34 CFR 668.163 - Maintaining and accounting for funds. | US Law | LII / Legal Information Institute
CFR › Title 34 › Subtitle B › Chapter VI › Part 668 › Subpart K › Section 668.163 34 CFR 668.163 - Maintaining and accounting for funds.
§ 668.163
Maintaining and accounting for funds.
Bank or investment account.
An institution must maintain title IV, HEA program funds in a bank or investment account that is Federally insured or secured by collateral of value reasonably equivalent to the amount of those funds.
For each bank or investment account that includes title IV, HEA program funds, an institution must clearly identify that title IV, HEA program funds are maintained in that account by—
Including in the name of each account the phrase “Federal Funds”; or
Notifying the bank or investment company of the accounts that contain title IV, HEA program funds and retaining a record of that notice; and
Except for a public institution, filing with the appropriate State or municipal government entity a UCC-1 statement disclosing that the account contains Federal funds and maintaining a copy of that statement.
Separate bank account.
The Secretary may require an institution to maintain title IV, HEA program funds in a separate bank or investment account that contains no other funds if the Secretary determines that the institution failed to comply with—
The requirements in this subpart;
The recordkeeping and reporting requirements in subpart B of this part; or
Applicable program regulations.
Interest-bearing or investment account.
An institution must maintain the Fund described in§ 674.8(a) of the Federal Perkins Loan Program regulations in an interest-bearing bank account or investment account consisting predominately of low-risk, income-producing securities, such as obligations issued or guaranteed by the United States. Interest or income earned on Fund proceeds are retained by the institution as part of the Fund.
Except as provided in paragraph (c)(3) of this section, an institution must maintain Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing bank account or an investment account as described in paragraph (c)(1) of this section.
An institution does not have to maintain Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing bank account or an investment account for an award year if—
The institution drew down less than a total of $3 million of those funds in the prior award year and anticipates that it will not draw down more than that amount in the current award year;
The institution demonstrates by its cash management practices that it will not earn over $250 on those funds during the award year; or
The institution requests those funds from the Secretary under the just-in-time payment method.
If an institution maintains Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing or investment account, the institution may keep the initial $250 it earns on those funds during an award year. By June 30 of that award year, the institution must remit to the Secretary any earnings over $250.
Accounting and internal control systems and financial records.
An institution must maintain accounting and internal control systems that—
Identify the cash balance of the funds of each title IV, HEA program that are included in the institution's bank or investment account as readily as if those program funds were maintained in a separate account; and
Identify the earnings on title IV, HEA program funds maintained in the institution's bank or investment account.
An institution must maintain its financial records in accordance with the provisions under§ 668.24.
Standard of conduct.
An institution must exercise the level of care and diligence required of a fiduciary with regard to maintaining and investing title IV, HEA program funds.
(Authority: 20 U.S.C. 1070g, 1091, 1094)
[61 FR 60603, Nov. 29, 1996, as amended at 71 FR 38003, July 3, 2006; 73 FR 35494, June 23, 2008]
§ 668.163 Maintaining and accounting for funds.
Bank or investment account. An institution must maintain title IV, HEA program funds in a bank or investment account that is Federally insured or secured by collateral of value reasonably equivalent to the amount of those funds.
(2) For each bank or investment account that includes title IV, HEA program funds, an institution must clearly identify that title IV, HEA program funds are maintained in that account by - (i) Including in the name of each account the phrase “Federal Funds”; or
(A) Notifying the bank or investment company of the accounts that contain title IV, HEA program funds and retaining a record of that notice; and
(B) Except for a public institution, filing with the appropriate State or municipal government entity a UCC-1 statement disclosing that the account contains Federal funds and maintaining a copy of that statement.
Separate bank account. The Secretary may require an institution to maintain title IV, HEA program funds in a separate bank or investment account that contains no other funds if the Secretary determines that the institution failed to comply with - (1) The requirements in this subpart;
(2) The recordkeeping and reporting requirements in subpart B of this part; or
(3) Applicable program regulations.
(1) An institution must maintain the Fund described in § 674.8(a) of the Federal Perkins Loan Program regulations in an interest-bearing bank account or investment account consisting predominately of low-risk, income-producing securities, such as obligations issued or guaranteed by the United States. Interest or income earned on Fund proceeds are retained by the institution as part of the Fund.
(2) Except as provided in paragraph (c)(3) of this section, an institution must maintain Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing bank account or an investment account as described in paragraph (c)(1) of this section.
(3) An institution does not have to maintain Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing bank account or an investment account for an award year if - (i) The institution drew down less than a total of $3 million of those funds in the prior award year and anticipates that it will not draw down more than that amount in the current award year;
(ii) The institution demonstrates by its cash management practices that it will not earn over $250 on those funds during the award year; or
(iii) The institution requests those funds from the Secretary under the just-in-time payment method.
(4) If an institution maintains Direct Loan, Federal Pell Grant, ACG, National SMART Grant, TEACH Grant, FSEOG, and FWS program funds in an interest-bearing or investment account, the institution may keep the initial $250 it earns on those funds during an award year. By June 30 of that award year, the institution must remit to the Secretary any earnings over $250.
(1) An institution must maintain accounting and internal control systems that - (i) Identify the cash balance of the funds of each title IV, HEA program that are included in the institution's bank or investment account as readily as if those program funds were maintained in a separate account; and
(ii) Identify the earnings on title IV, HEA program funds maintained in the institution's bank or investment account.
(2) An institution must maintain its financial records in accordance with the provisions under § 668.24.
Standard of conduct. An institution must exercise the level of care and diligence required of a fiduciary with regard to maintaining and investing title IV, HEA program funds.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 20 - EDUCATION§ 1001 - General definition of institution of higher education§ 1002 - Definition of institution of higher education for purposes of student assistance programs§ 1003 - Additional definitions§ 1070g - Definitions§ 1085 - Definitions for student loan insurance program§ 1088 - Definitions§ 1091 - Student eligibility§ 1092 - Institutional and financial assistance information for students§ 1094 - Program participation agreements§ 1099c - Eligibility and certification procedures§ 1099c-1
Title 34 published on 2015-07-01The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 34 CFR Part 668 after this date.2015-10-30; vol. 80 # 210 - Friday, October 30, 201580 FR 67126 - Program Integrity and Improvement
typeregulations.gov FR Doc.2015-27145 RIN1840-AD14 Docket No.ID ED-2015-OPE-0020 DEPARTMENT OF EDUCATION, Office of Postsecondary Education Final regulations. Effective date: These regulations are effective July 1, 2016. Compliance dates: Compliance with the regulations in § 668.164(e)(2)(vi) and (f)(4)(iii) is required by September 1, 2016; § 668.164(d)(4)(i)(B)( 2 ) by July 1, 2017; and § 668.164(e)(2)(vii) and (f)(4)(iv) by September 1, 2017. 34 CFR Part 668 SummaryThe Secretary amends the cash management regulations and other sections of the Student Assistance General Provisions regulations issued under the Higher Education Act of 1965, as amended (HEA). These final regulations are intended to ensure that students have convenient access to their title IV, HEA program funds, do not incur unreasonable and uncommon financial account fees on their title IV funds, and are not led to believe they must open a particular financial account to receive their Federal student aid. In addition, the final regulations update other provisions in the cash management regulations and otherwise amend the Student Assistance General Provisions. The final regulations also clarify how previously passed coursework is treated for title IV eligibility purposes and streamline the requirements for converting clock hours to credit hours.
80 FR 67204 - Student Assistance General Provisions, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program
typeregulations.gov FR Doc.2015-27143 RIN1840-AD18 Docket No.ID ED-2014-OPE-0161 DEPARTMENT OF EDUCATION, Office of Postsecondary Education Final regulations. The regulations are effective July 1, 2016. Implementation date: For the implementation dates of the included regulatory provisions, see the Implementation Date of These Regulations section of this document. 34 CFR Parts 668, 682, and 685 SummaryThe Secretary amends the regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program to create a new income-contingent repayment plan in accordance with the President&apos;s initiative to allow more Direct Loan borrowers to cap their loan payments at 10 percent of their monthly incomes. The Secretary is also implementing changes to the Federal Family Education Loan (FFEL) Program and Direct Loan Program regulations to streamline and enhance existing processes and provide additional support to struggling borrowers. These regulations will also amend the Student Assistance General Provisions regulations by expanding the circumstances under which an institution may challenge or appeal a draft or final cohort default rate based on the institution&apos;s participation rate index.
2015-07-09; vol. 80 # 131 - Thursday, July 9, 201580 FR 39608 - Student Assistance General Provisions, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program
typeregulations.gov FR Doc.2015-16623 RIN1840-AD18 Docket No.ID ED-2014-OPE-0161 DEPARTMENT OF EDUCATION, Office of Postsecondary Education Notice of proposed rulemaking. We must receive your comments on or before August 10, 2015. 34 CFR Parts 668, 682, and 685 SummaryThe Secretary proposes to amend the regulations governing the William D. Ford Federal Direct Loan (Direct Loan) Program to create a new income-contingent repayment plan in accordance with the President&apos;s initiative to allow more Direct Loan borrowers to cap their loan payments at 10 percent of their monthly incomes. The Secretary is also proposing changes to the Federal Family Education Loan (FFEL) Program and Direct Loan Program regulations to streamline and enhance existing processes and provide additional support to struggling borrowers. These proposed regulations would also amend the Student Assistance General Provisions regulations by expanding the circumstances under which an institution may challenge or appeal a draft or final cohort default rate based on the institution&apos;s participation rate index.