34 C.F.R. § 685.213 Total and permanent disability discharge.
Title 34 - Education
(a) General. (1) If the Secretary makes an initial determination that a borrower is totally and permanently disabled, the Secretary— (i) Notifies the borrower that the loan will be in a conditional discharge status for up to three years from the date that the borrower became totally and permanently disabled, as certified under 685.213(b). The Secretary also notifies the borrower of the conditions of the conditional discharge period, and that all or part of the three-year conditional discharge period may predate the Secretary's initial determination. (ii) Suspends any efforts to collect on the loan from the date of the initial determination described in paragraph (a)(1) of this section until the end of the conditional discharge period. (2) If the borrower continues to meet the eligibility requirements for total and permanent disability discharge during and at the end of the three-year conditional discharge period, the Secretary— (i) Discharges the obligation of the borrower and any endorser to make any further payments on the loan at the end of that period; and (ii) Returns to the borrower any payments received after the date the borrower became totally and permanently disabled, as certified under §685.213(b). (3) If the borrower does not continue to meet the eligibility requirements for a total and permanent disability discharge at any time during or at the end of the three-year conditional discharge period, the Secretary resumes collection activity on the loan. The Secretary does not require the borrower to pay any interest that accrued on the loan from the date of the initial determination described in paragraph (a)(1) of this section through the end of the conditional discharge period. (4) Except as provided in paragraph (e)(1) of this section, a borrower is not considered totally and permanently disabled based on a condition that existed at the time the loan was made, unless the borrower's condition substantially deteriorated after the loan was made so as to render the borrower totally and permanently disabled. (b) Initial determination of total and permanent disability. The Secretary makes an initial determination that a borrower is totally and permanently disabled if the borrower (or the borrower's representative) provides the Secretary with a certification (on a form approved by the Secretary) by a physician who is a doctor of medicine or osteopathy and legally authorized to practice in a State that the borrower is totally and permanently disabled as defined in 34 CFR 682.200(b). (c) Eligibility requirements for total and permanent disability discharge. A borrower meets the eligibility requirements for total and permanent disability discharge if, during and at the end of the three-year conditional discharge period described in paragraph (a)(1) of this section— (1) The borrower's annual earnings from employment do not exceed 100 percent of the poverty line for a family of two, as determined in accordance with the Community Service Block Grant Act; and (2) The borrower does not receive a new loan under the Perkins, FFEL, or Direct Loan programs, except for a FFEL or Direct consolidation loan that does not include any loans that are in a conditional discharge status. (d) Conditional discharge period. During the conditional discharge period described in paragraph (a)(1) of this section, the borrower— (1) Is not required to make any payments of principal or interest on the loan beginning on the date the Secretary makes an initial determination that the borrower is totally and permanently disabled; (2) Is not considered to be delinquent or in default on the loan, unless the loan was delinquent or in default at the time the conditional discharge was granted; (3) Must promptly notify the Secretary of any changes in the borrower's address or telephone number; (4) Must promptly notify the Secretary if the borrower's annual earnings from employment exceed the amount specified in paragraph (c)(1) of this section; and (5) Must provide the Secretary, upon request, with additional documentation or information related to the borrower's eligibility for discharge under this section. (e) Provisions for discharge of Direct Consolidation Loans. (1) For a Direct Consolidation Loan, a borrower is considered totally and permanently disabled if he or she would be considered totally and permanently disabled under the provisions of this section for all of the loans that were included in the Direct Consolidation Loan if those loans had not been consolidated. (2) For the purposes of discharging a loan under paragraph (e)(1) of this section, the provisions of this section apply to each loan included in the Direct Consolidation Loan, even if the loan is not a Direct Loan Program loan. (3) If requested, a borrower seeking to discharge a loan obligation under paragraph (e)(1) of this section must provide the Secretary with the disbursement dates of the underlying loans. (Authority: 20 U.S.C. 1087a et seq.) [65 FR 65694, Nov. 1, 2000]
Title 34: Education
PART 685—WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
Subpart B—Borrower Provisions
§ 685.213 Total and permanent disability discharge.
