19 Tex. Admin. Code § 22.54 - Deceased or Disabled Borrowers and Cosigners
(a) Upon final verification of the death or
determination of permanent and total disability of a borrower, all loans
through the Program shall be discharged unless there is a judgment against the
borrower and the Commissioner determines that a release of the borrower's
liability is not in the best interest of the Program.
(b) Verification of death and determination
of permanent and total disability of a borrower or cosigner through the FSL,
FSLS, and CAL programs shall be made in accordance with the governing
provisions of the FSL program.
(c)
Verification of death or determination of permanent and total disability of a
borrower or cosigner through the HEAL and HELP programs shall be made in
accordance with the governing provisions of the HEAL program.
(d) The final verification of death and
determination of permanent and total disability of a borrower or cosigner shall
be made by the appropriate official for each loan program as follows:
(1) for FSL, the United States Secretary of
Education;
(2) for FSLS, the United
States Secretary of Education;
(3)
for CAL, the Commissioner;
(4) for
HEAL, the United States Secretary of Health and Human Services; and
(5) for HELP, the Commissioner.
(e) Upon final verification of the
death or determination of permanent and total disability of a borrower, the
liability of the cosigner/accommodation party for that borrower shall be
discharged.
(f) Upon final
verification of the death or determination of permanent and total disability of
a cosigner, the Commissioner shall determine if the release of the liability of
the cosigner is in the best interest of the loan program and, if so, shall
authorize a release of the cosigner's liability, whether or not there is a
judgment against the cosigner.
Notes
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