[Code of Federal Regulations]
[Title 42, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 42CFR60.39]

[Page 331]
 
                         TITLE 42--PUBLIC HEALTH
 
    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES
 
PART 60--HEALTH EDUCATION ASSISTANCE LOAN PROGRAM--Table of Contents
 
                    Subpart D--The Lender and Holder
 
Sec. 60.39  Death and disability claims.

    (a) Death. The Secretary will discharge a borrower's liability on 
the loan in accordance with section 738 of the Act upon the death of the 
borrower. The holder of the loan may not attempt to collect on the loan 
from the borrower's estate or any endorser. The holder must secure a 
certification of death or whatever official proof is conclusive under 
State law. The holder must return to the sender any payments, except for 
refunds under Sec. 60.21, received from the estate of the borrower or 
paid on behalf of the borrower after the date of death.
    (b) Disability. (1) The Secretary will discharge a borrower's 
liability on the loan in accordance with section 738 of the Act if the 
borrower is found to be permanently and totally disabled on 
recommendation of the holder of the loan and as supported by whatever 
medical certification the Secretary may require. A borrower is totally 
and permanently disabled if he or she is unable to engage in any 
substantial gainful activity because of a medically determinable 
impairment, which the Secretary expects to continue for a long and 
indefinite period of time or to result in death.
    (2) After being notified by the borrower or the borrower's 
representative that the borrower claims to be totally and permanently 
disabled, the holder of the loan may not attempt to collect on the loan 
from the borrower or any endorser. The holder must promptly request that 
the Secretary determine whether a borrower has become totally and 
permanently disabled. With its request, the holder must submit medical 
evidence no more than 4 months old that it has obtained from the 
borrower or the borrower's representative.
    (3) If the Secretary determines that the borrower is totally and 
permanently disabled, the lender or holder must return to the borrower 
any payments, except for refunds under Sec. 60.21, that it receives 
after being notified that the borrower claims to be totally and 
permanently disabled.

(Approved by the Office of Management and Budget under control number 
0915-0108)

[48 FR 38988, Aug. 26, 1983, as amended at 57 FR 28797, June 29, 1992]