New Total and Permanent Disability Discharge Procedures

    The U.S. Department of Education (ED) recently released a Dear Colleague Letter (DCL), GEN-02-03, providing guidance concerning the new total and permanent disability discharge procedures for Title IV loans.  On November 1, 2000, final regulations were issued making several changes to the existing regulations governing total and permanent disability discharge procedures (see UHEAA Bulletin Volume 2000 - Issue 90.)  While some of the provisions went into effect on July 1, 2001, most of the regulatory changes become effective July 1, 2002.

    GEN-02-03 provides guidance for schools, lenders, and guaranty agencies regarding the new standards and procedures for processing total permanent disability discharge requests.  This letter addresses the following issues:

• Overview of regulatory changes;
• Application availability and effective date for use;
• Triggering date for implementation of new procedures; and
• ED's expectations for holders' preliminary determinations.

    A copy of GEN-02-03 and attachments is available on ED's web site at www.ifap.ed.gov/IFAPWebApp/index.jsp.  If you are unable to access ED's web site and would like a hard copy, please contact Stacey Fabros at (801) 321-7211.  Any questions regarding this Bulletin should be directed to the UHEAA Policy and Training Department at (801) 321-7166, or by e-mail at ceresuma@utahsbr.edu.
 

Attachments
Federal Perkins Loan Program (PDF)
FFEL Program (PDF)
Department of Education (PDF)