When may the Secretary offset a debt?

§ 30.21 When may the Secretary offset a debt? (a) The Secretary may offset a debt if: (1) The debt is liquidated or certain in amount; and (2) Offset is feasible and not otherwise prohibited. (b)(1) Whether offset is feasible is determined by the Secretary in the exercise of sound discretion on a case-by-case basis, either: (i) For each individual debt or offset; or (ii) For each class of similar debts or offsets. (2) The Secretary considers the following factors in making this determination: (i) Whether offset can be practically and legally accomplished. (ii) Whether offset will further and protect the interests of the United States. (c) The Secretary may switch advance funded grantees to a reimbursement payment system before initiating an offset. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b))