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FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)667.6
AsOfDate: 12/31/95

From the Compilation of Regulations through 12/31/95.

Sec. 667.6 SPRE selection of institutions for review.

(a) A SPRE may review an institution under this part

that was not referred by the Secretary if--

(1) The SPRE--

(i)(A) Determines that the institution meets a referral

criterion in Sec. 667.5 based on more recent data available to the
SPRE; or

(B) Has reason to believe the institution is engaged in

fraudulent practices; and

(ii) Requests the Secretary to approve its review of that

institution; and

(2) The Secretary--

(i) Approves that request; or

(ii) Does not respond to the SPRE's request within 21

days after the date the Secretary receives that request; and

(b) If, under paragraph (a)(1)(i)(A) of this section, a

State selects an institution for review, before the SPRE may
request the Secretary to approve that review, the SPRE must--

(1) Notify the institution of the selection and provide the

institution with the reasons for its selection;

(2) Delay its review request to the Secretary if the State

receives a notice from the institution no later than seven days
after the institution receives the notice from the State challenging
the accuracy of the information on which the selection was based.

(3)(i) If an institution challenges the accuracy of the

information on which its selection was based, the institution has
the burden of proving that the information was inaccurate.

(ii) For purposes of paragraph (c)(3)(i) of this section,

the State shall presume that records maintained in the normal
course of business by the U.S. Department of Education, a
guaranty agency under the FFEL programs, a SPRE, a State
licensing agency, or another State agency are accurate.

(4) To challenge the accuracy of the information on

which its referral was based, the State must receive no later than
30 days after the institution receives the notice described in
paragraph (c)(1) of this section the institution's submission, along
with any supporting document or record.

(c) If the institution timely challenges its referral under

paragraph (b) of this section, the State requests a review of the
institution from the Secretary unless the institution convinces the
State that its selection was based upon inaccurate information.

(d)(1) Documents referenced in this section may be

hand-delivered or mailed. If documents are mailed, they must be
mailed certified mail, return receipt requested, or by next-day mail
service.

(2) If documents are mailed, proof of receipt shall be

evidenced by the delivery date indicated on the United States
Postal Service return receipt card (green card), or the pick up
date indicated on the next day mail service's bill.

(3) For purposes of paragraph (e)(2) of this section, if

any submission is sent by next-day mail service, the State shall
presume that the document was delivered the day after the date
on which it was picked up for delivery.

(Authority: 20 U.S.C. 1099a-3)