[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR685.213]



[Page 839-841]

 

                           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



[[Page 840]]



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;

    (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



[[Page 841]]



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]