[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR685.213]

[Page 850-851]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 685--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM--Table of Contents
 
                     Subpart B--Borrower Provisions
 
Sec. 685.213  Total and permanent disability discharge.

    (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 
Sec. 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;

[[Page 851]]

    (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.)

[66 FR 65694, Nov. 1, 2000]

    Effective Date Note: At 65 FR 65694, Nov. 1, 2000, Sec. 685.213 was 
added, effective July 1, 2002.