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Federal Register / Vol. 86, No. 160 / Monday, August 23, 2021 / Rules and Regulations www.govinfo.gov. At this site you can view this document, as well as all other documents of this Department published in the Federal Register, in text or PDF. To use PDF you must have Adobe Acrobat Reader, which is available free at the site.
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List of Subjects 34 CFR Part 674
Loan programseducation, Reporting and recordkeeping, Student aid.
34 CFR Part 682
Administrative practice and procedure, Colleges and Universities, Loan programseducation, Reporting and recordkeeping requirements, Student aid, Vocational education.
34 CFR Part 685
Administrative practice and procedure, Colleges and Universities, Loan programseducation, Reporting and recordkeeping requirements, Student aid, Vocational education.
Annmarie Weisman, Deputy Assistant Secretary for Policy, Planning, and Innovation, Office of Postsecondary Education.

Accordingly, the interim rule amending 34 CFR parts 674, 682, and 685, which published on November 26, 2019 84 FR 65000, is adopted as final with the following changes:
PART 674FEDERAL PERKINS LOAN
PROGRAM
1. The authority citation for part 674
continues to read as follows:

Authority: 20 U.S.C. 1070g, 1087aa 1087hh; Public Law 111256, 124 Stat. 2643;
unless otherwise noted.

2. Section 674.61 is amended by:
a. In paragraph c2iv, removing The veteran and adding in its place Except as provided in paragraph d of this section, the veteran.
b. Removing paragraph c2x.
c. Redesignating paragraphs d and e as paragraphs f and g, respectively.
d. Adding new paragraphs d and e.
e. Removing the parenthetical authority citation at the end of the section.
The additions read as follows:

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674.61

Discharge for death or disability.

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d Discharge without an application.
1 The Secretary may discharge a loan under this section without an application or any additional documentation from the borrower if the Secretary i Obtains data from the Department of Veterans Affairs VA showing that the borrower is unemployable due to a service-connected disability; or ii Obtains data from the Social Security Administration SSA showing that the borrower qualifies for SSDI or SSI benefits and that the borrowers next scheduled disability review will be no earlier than five nor later than seven years.
2 Reserved e Notifications and return of payments. 1 After determining that a borrower qualifies for a total and permanent disability discharge under paragraph d of this section, the Secretary sends a notification to the borrower informing the borrower that the Secretary will discharge the borrowers title IV loans unless the borrower notifies the Secretary, by a date specified in the Secretarys notification, that the borrower does not wish to receive the loan discharge.
2 Unless the borrower notifies the Secretary that the borrower does not wish to receive the discharge, the Secretary notifies the borrowers lenders that the borrower has been approved for a disability discharge.
3 In the case of a discharge based on a disability determination by VA
i The notification A Provides the effective date of the disability determination by VA; and B Directs each institution holding a Defense, NDSL, or Perkins Loan made to the borrower to discharge the loan; and ii The institution returns to the person who made the payments any payments received on or after the effective date of the determination by VA that the borrower is unemployable due to a service-connected disability.
4 In the case of a discharge based on a disability determination by the SSA
i The notification A Provides the date the Secretary received the SSA notice of award for SSDI or SSI benefits; and B Directs each institution holding a Defense, NDSL, or Perkins Loan made to the borrower to assign the loan to the Secretary within 45 days of the notice described in paragraph e2 of this section; and ii After the loan is assigned, the Secretary discharges the loan in accordance with paragraph b3v of this section.
5 If the borrower notifies the Secretary that they do not wish to
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receive the discharge, the borrower will remain responsible for repayment of the borrowers loans in accordance with the terms and conditions of the promissory notes that the borrower signed.

PART 682FEDERAL FAMILY
EDUCATION LOAN FFEL PROGRAM
3. The authority citation for part 682
continues to read as follows:

Authority: 20 U.S.C. 107110874, unless otherwise noted.

4. Section 682.402 is amended by:
a. In paragraph c9iv, removing The veteran and adding in its place Except as provided in paragraph c10
of this section, the veteran.
b. Removing paragraph c9xiii.
c. Adding paragraphs c10 and 11.
d. Removing the parenthetical authority citation at the end of the section.
The additions read as follows:

682.402 Death, disability, closed school, false certification, unpaid refunds, and bankruptcy payments.

c
10 Discharge without an application.
i The Secretary may discharge a loan under this section without an application or any additional documentation from the borrower if the Secretary A Obtains data from the Department of Veterans Affairs VA showing that the borrower is unemployable due to a service-connected disability; or B Obtains data from the Social Security Administration SSA showing that the borrower qualifies for SSDI or SSI benefits and that the borrowers next scheduled disability review will be no earlier than five nor later than seven years.
ii Reserved 11 Notifications and return of payments. i After determining that a borrower qualifies for a total and permanent disability discharge under paragraph c10 of this section, the Secretary sends a notification to the borrower informing the borrower that the Secretary will discharge the borrowers title IV loans unless the borrower notifies the Secretary, by a date specified in the Secretarys notification, that the borrower does not wish to receive the loan discharge.
ii Unless the borrower notifies the Secretary that the borrower does not wish to receive the discharge, the Secretary notifies the borrowers loan holders that the borrower has been approved for a disability discharge.
With this notification the Secretary
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