The Education Dept. published Final Regulations related to the cancellation of loans for spouses of victims of 9/11. Some of the provisions are different than those published in the Interim Regulations under which we were operating. The changes are effective 10/29/07.
The regulation [674.52(c)(3)] is changed to specify that a defaulted Perkins loan may qualify for the cancellation.
The timeframe for receipt of medical treatment is extended from 24 hours to 72 hours (One criteria for determining eligibility was whether the borrower received medical treatment within 24 hours of the disaster or the borrower's rescue from the disaster; that provision is extended to 72 hours.)
Cancellation is provided for physical injuries only. The Department reviewed and rejected arguments to extend the benefit to borrowers who suffered non-physical (e.g. emotional, psychological) injuries.
The borrower requesting the discharge may sign the statement or the discharge application to indicate the "victim" was present at the crash site, in the buildings, in areas contiguous to the crash sites, or on board any of the aircraft.
While these are minor changes, they do impact the eligibility of a borrower for the benefit. Since we see so few of these, you may continue to bring them to me for review.
Originated: Debbie Glish Email 10/2/07
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