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

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

   1. (1) Under a program administered by the Department under which an individual received a fellowship, scholarship, or loan that they are obligated to repay; or
   2. (2) To the Federal Government under a nonprocurement transaction; and
2. (b) Has not made satisfactory arrangements to repay the debt.

[89 FR 70320, Aug. 29, 2024]