34 CFR §30.21

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