October 4 , 2005
Volume 2005 – Issue 49
Total and Permanent Disability Claim Issues Resolved
Representatives of the Federal Family Education Loan Program and the U.S. Department of Education recently resolved severalissues involving the process of assigning loans to the Conditional Disability Discharge Unit for the conditional discharge process. The resolution of two of theissues affects how a lender or servicer determines if the Loan Discharge Application: Total and Permanent Disability form is acceptable for filing claims with the Utah Higher Education Assistance Authority (UHEAA).
Lenders and servicers must implement the following changes effective immediately for any claim filed due to a borrower’s total and permanent disability:
- Any change or alteration to field 3.b (the date the borrower became unable to work and earn money) must be accompanied by documentation from the physician explaining the change or alteration.
- Changes to Section 1 (Borrower Identification) do not need to be initialed or explained.
- Any changes or alterations, other than in Section 1 or field 3.b, must be initialed by the physician in close proximity to the item being changed.