[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 42CFR60.39]



[Page 337-338]

 

                         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.



[[Page 338]]



    (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]