1. (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. (1) Provision of information and technical assistance; and
   2. (2) Formulation of a compliance agreement designed to bring the IHE into full compliance with this part as soon as feasible.

2. (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. (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. (2) The termination of any or all forms of Federal financial assistance that—

      1. (i)

         1. (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
         2. (B) Prohibits an IHE from making any new obligations against Federal funds; and

      2. (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.

         (Authority: 20 U.S.C. 1145g)

[55 FR 33581, Aug. 16, 1990, as amended at 61 FR 66225, Dec. 17, 1996]