A limitation limits, in a specified manner, the participation of an institution in the CELP by setting special conditions for continued participation in those programs. A limitation imposed by the Hearing Officer or the CELP Official may contain an expiration date, after which the limitation shall cease. The limitation may include an order directing the institution, which is subject to the limitation, to make restitution or repayment of funds. If emergency action has preceded the limitation, then the terms of the emergency action shall be converted to the terms of the limitation, as set forth in this subpart.

A limitation of a school may include a limit on the number or percentage of students enrolled in that institution who may receive CELP loans, a requirement that the school obtain a bond in a specified amount to assure its ability to meet its financial obligations to borrowers who receive CELP loans, and other reasonable limits on its participation in the programs.

A limitation of a lender, or of a school lender, may include a limit on the number or total dollar amount of CELP loans that such lender may make, purchase, or hold or lend to cover the cost of attending a particular school, and other reasonable limits on its participation in the programs.