(a) An individual is ineligible to receive a fellowship, scholarship, or discretionary grant funded by the Department if the individual—

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(1) Is not current in repaying a debt or is in default, as that term is used in 34 CFR part 668, on a debt—

(i) Under a program listed in paragraph (b) of this section; or

(ii) To the Federal Government under a nonprocurement transaction; and

(2) Has not made satisfactory arrangements to repay the debt.

(b) An individual who is not current in repaying a debt, or is in default, as that term is used in 34 CFR part 668, on a debt under a fellowship, scholarship, discretionary grant, or loan program, as included in the following list, and who has not made satisfactory arrangements to repay the debt, is ineligible under paragraph (a) of this section:

(1) A grant awarded under the Pell Grant (20 U.S.C. § 1070a, et seq.), National Early Intervention Scholarship and Partnership (NEISP) Program (20 U.S.C. §§ 1070a-21, et seq.), Supplemental Educational Opportunity Grant (SEOG) (20 U.S.C. § 1070b, et seq.), or State Student Incentive Grant (SSIG) (20 U.S.C. § 1070c, et seq.) program, or a scholarship awarded under the Robert C. Byrd Honors Scholarship Program (20 U.S.C. §§ 1070d-31, et seq.), a fellowship awarded under the Jacob K. Javits Fellows Program (20 U.S.C. §§ 1134h-1134k), or a fellowship awarded under the Patricia Roberts Harris Fellowship Program (20 U.S.C. §§ 1134d-1134f).

(2) A fellowship awarded under the Christa McAuliffe Fellowship Program (20 U.S.C. §§ 1113-1113e), the Bilingual Education Fellowship Program (20 U.S.C. §§ 3221-3262), or the Rehabilitation Long-Term Training Program (29 U.S.C. § 774(b)).

(3) A loan made under the Perkins Loan Program (20 U.S.C. § 1087aa, et seq.), the Income Contingent Direct Loan Demonstration Project (20 U.S.C. § 1087a, et seq.), the Stafford Loan Program, Supplemental Loans for Students (SLS), PLUS, or Consolidation Loan Program (20 U.S.C. § 1071, et seq.), or the Cuban Student Loan Program (22 U.S.C. § 2601, et seq.).

(4) A scholarship or repayment obligation incurred under the Paul Douglas Teacher Scholarship Program (20 U.S.C. § 1111, et seq.).

(5) A grant, or a loan, made under the Law Enforcement Education Program (42 U.S.C. § 3775).

(6) A stipend awarded under the Indian Fellowship Program (29 U.S.C. § 774(b)).

(7) A scholarship awarded under the Teacher Quality Enhancement Grants Program (20 U.S.C. § 1021 et seq.).

(Authority: 20 U.S.C. §§ 1221e-3 and 3474)[57 FR 30337, July 8, 1992, as amended at 59 FR 24870, May 12, 1994; 65 FR 19609, Apr. 11, 2000]