|
Citations: (R)674.61 AsOfDate: 12/31/99 Sec. 674..61 Cancellation for death or disability. (a) Death. An institution shall cancel the unpaid balance of a borrower's Defense, Direct, or Perkins loan, including interest, if the borrower dies. The lending institution shall cancel the loan on the basis of a death certificate or other evidence of death that is conclusive under State law. (b) Permanent and total disability. (1) An institution shall cancel the unpaid balance of a Defense, Direct, or Perkins loan, including interest, if the borrower becomes permanently and totally disabled after receiving the loan. The lending institution shall decide whether to cancel the loan based on medical evidence, certified by a physician, which the borrower or his or her representative supplies. (2) Permanent and total disability is the inability to work and earn money or to attend an institution because of an impairment that is expected to continue indefinitely or result in death. (c) No Federal reimbursement. No Federal reimbursement is made to an institution for cancellation of loans due to death or disability. (d) Retroactive. Cancellation for death or disability applies retroactively to all Defense, Direct or Perkins loans. (Authority: 20 U.S.C. 425 and 1087dd and Sec. 130(g)(2) of the Education Amendments of 1976, Pub. L. 94-482) (Approved by the Office of Management and Budget under control number 1845-0019) Note: (b)(2) amended November 30, 1994, effective July 1, 1995. Office of Management and Budget control number amended October 28, 1999, effective July 1, 2000. [[Click here for Part 674 in PDF file format]] |