Responses and Sanctions Issued or Imposed by the Secretary for Violations by an IHE

34 C.F.R. Part ..., Subpart D
in effectEffective: 2024-07-01

34 C.F.R. § 86.300 What constitutes a violation of this part by an IHE?

An IHE violates this part by— (a) Receiving any form of Federal financial assistance after becoming ineligible to receive that assistance because of failure to submit a certification in accordance with § 86.3(b); or (b) Violating its certification. Violation of a certification includes failure of an IHE to— (1) Adopt or implement its drug prevention program; or (2) Consistently enforce its disciplinary sanctions for violations by students and employees of the standards of conduct adopted by an IHE under § 86.100(a)(1).

34 C.F.R. § 86.301 What actions may the Secretary take if an IHE violates this part?

(a) If an IHE violates its certification, the Secretary may issue a response to the IHE. A response may include, but is not limited to— (1) Provision of information and technical assistance; and (2) Formulation of a compliance agreement designed to bring the IHE into full compliance with this part as soon as feasible. (b) If an IHE receives any form of Federal financial assistance without having submitted a certification or violates its certification, the Secretary may impose one or more sanctions on the IHE, including— (1) Repayment of any or all forms of Federal financial assistance received by the IHE when it was in violation of this part; and (2) The termination of any or all forms of Federal financial assistance that— (i)(A) Except as specified in paragraph (b)(2)(ii) of this section, ends an IHE's eligibility to receive any or all forms of Federal financial assistance. The Secretary specifies which forms of Federal financial assistance would be affected; and (B) Prohibits an IHE from making any new obligations against Federal funds; and (ii) For purposes of an IHE's participation in the student financial assistance programs authorized by title IV of the Higher Education Act of 1965 as amended, has the same effect as a termination under 34 CFR 668.94.

34 C.F.R. § 86.302 What are the procedures used by the Secretary for providing information or technical assistance?

(a) The Secretary provides information or technical assistance to an IHE in writing, through site visits, or by other means. (b) The IHE shall inform the Secretary of any corrective action it has taken within a period specified by the Secretary.

34 C.F.R. § 86.303 What are the procedures used by the Secretary for issuing a response other than the formulation of a compliance agreement or the provision of information or technical assistance?

(a) If the Secretary intends to issue a response other than the formulation of a compliance agreement or the provision of information or technical assistance, the Secretary notifies the IHE in writing of— (1) The Secretary's determination that there are grounds to issue a response other than the formulation of a compliance agreement or providing information or technical assistance; and (2) The response the Secretary intends to issue. (b) An IHE may submit written comments to the Secretary on the determination under paragraph (a)(1) of this section and the intended response under paragraph (a)(2) of this section within 30 days after the date the IHE receives the notification of the Secretary's intent to issue a response. (c) Based on the initial notification and the written comments of the IHE the Secretary makes a final determination and, if appropriate, issues a final response. (d) The IHE shall inform the Secretary of the corrective action it has taken in order to comply with the terms of the Secretary's response within a period specified by the Secretary. (e) If an IHE does not comply with the terms of a response issued by the Secretary, the Secretary may issue an additional response or impose a sanction on the IHE in accordance with the procedures in § 86.304.

34 C.F.R. § 86.304 What are the procedures used by the Secretary to demand repayment of Federal financial assistance or terminate an IHE's eligibility for any or all forms of Federal financial assistance?

(a) A designated Department official begins a proceeding for repayment of Federal financial assistance or termination, or both, of an IHE's eligibility for any or all forms of Federal financial assistance by sending the IHE a notice by certified mail with return receipt requested. This notice— (1) Informs the IHE of the Secretary's intent to demand repayment of Federal financial assistance or to terminate, describes the consequences of that action, and identifies the alleged violations that constitute the basis for the action; (2) Specifies, as appropriate— (i) The amount of Federal financial assistance that must be repaid and the date by which the IHE must repay the funds; and (ii) The proposed effective date of the termination, which must be at least 30 days after the date of receipt of the notice of intent; and (3) Informs the IHE that the repayment of Federal financial assistance will not be required or that the termination will not be effective on the date specified in the notice if the designated Department official receives, within a 30-day period beginning on the date the IHE receives the notice of intent described in this paragraph— (i) Written material indicating why the repayment of Federal financial assistance or termination should not take place; or (ii) A request for a hearing that contains a concise statement of disputed issues of law and fact, the IHE's position with respect to these issues, and, if appropriate, a description of which Federal financial assistance the IHE contends need not be repaid. (b) If the IHE does not request a hearing but submits written material— (1) The IHE receives no additional opportunity to request or receive a hearing; and (2) The designated Department official, after considering the written material, notifies the IHE in writing whether— (i) Any or all of the Federal financial assistance must be repaid; or (ii) The proposed termination is dismissed or imposed as of a specified date.

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