Section 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.55 FR 33581, Aug. 16, 1990, as amended at 61 FR 66225, Dec. 17, 1996 Authority: 20 U.S.C. 1145g