PUBLIC LAW 105-244—OCT. 7, 1998 112 STAT. 1739 " (1) RESPONSIBILITY OF THE INSTITUTION. —The institution shall return, in the order specified in paragraph (3), the lesser of— "(A) the amount of grant and loan assistance awarded under this title that has not been earned by the student, as calculated under subsection (a)(3)(C); or "(B) an amount equal to— "(i) the total institutional charges incurred by the student for the payment period or period of enrollment for which such assistance was awarded; multiplied by "(ii) the percentage of grant and loan assistance awarded under this title that has not been earned by the student, as described in subsection (a)(3)(C)(i). "(2) RESPONSIBILITY OF THE STUDENT.— "(A) IN GENERAL. — The student shall return assistance that has not been earned by the student as described in subsection (a)(3)(C)(ii) in the order specified in paragraph (3) minus the amount the institution is required to return under paragraph (1). "(B) SPECIAL RULE. —The student (or parent in the case of funds due to a loan borrowed by a parent under part B or D) shall return or repay, as appropriate, the amount determined under subparagraph (A) to— "(i) a loan program under this title in accordance with the terms of the loan; and "(ii) a grant program under this title, as an overpayment of such grant and shall be subject to— "(I) repayment arrangements satisfactory to the institution; or "(II) overpayment collection procedures prescribed by the Secretary. "(C) REQUIREMENT.—Notwithstanding subparagraphs (A) and (B), a student shall not be required to return 50 percent of the grant assistance received by the student under this title, for a pa3anent period or period of enrollment, that is the responsibility of the student to repay under this section. "(3) ORDER OF RETURN OF TITLE IV FUNDS. — "(A) IN GENERAL. —Excess funds returned by the institution or the student, as appropriate, in accordance with paragraph (1) or (2), respectively, shall be credited to outstanding balances on loans made under this title to the student or on behalf of the student for the payment period or period of enrollment for which a return of funds is required. Such excess funds shall be credited in the following order: "(i) To outstanding balances on loans made under section 428H for the pa5anent period or period of enrollment for which a return of funds is required. "(ii) To outstanding balances on loans made under section 428 for the payment period or period of enrollment for which a return of funds is required. "(iii) To outstanding balances on unsubsidized loans (other than parent loans) made under part D for the pa3anent period or period of enrollment for which a return of funds is required.
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