UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF POSTSECONDARY EDUCATION

Proposed Regulatory Text for Issue Paper #1: Total and Permanent Disability Discharge

Session Three: December 6 -10, 2021

Part 674—Federal Perkins Loan Program

§ 674.61 Discharge for death or disability.

* * * * *(b) Total and permanent disability as defined in § 674.51(aa)(1). (1) General. (i) A borrower's 

Defense, NDSL, or Perkins loan is discharged if the borrower becomes totally and permanently disabled, 

as defined in § 674.51(aa)(1), and satisfies the additional eligibility requirements in this section. 

(ii) For purposes of paragraph (b) of this section, a borrower's representative or a veteran's 

representative is a member of the borrower's family, the borrower's attorney, or another individual 

authorized to act on behalf of the borrower in connection with the borrower's total and permanent 

disability discharge application. References to a “borrower” or a “veteran” include, if applicable, the 

borrower's representative or the veteran's representative for purposes of applying for a total and 

permanent disability discharge, providing notifications or information to the Secretary, and receiving 

notifications from the Secretary. 

(2) Discharge application process for borrowers who have a total and permanent disability as 

defined in § 674.51(aa)(1). (i) If the borrower notifies the institution that the borrower claims to be 

totally and permanently disabled as defined in § 674.51(aa)(1), the institution must direct the borrower 

to notify the Secretary of the borrower's intent to submit an application for total and permanent 

disability discharge and provide the borrower with the information needed for the borrower to notify 

the Secretary. 

(ii) If the borrower notifies the Secretary of the borrower's intent to apply for a total and 

permanent disability discharge, the Secretary -

(A) Provides the borrower with information needed for the borrower to apply for a total and 

permanent disability discharge; 

(B) Identifies all title IV loans owed by the borrower and notifies the lenders of the borrower's 

intent to apply for a total and permanent disability discharge; 

(C) Directs the lenders to suspend efforts to collect from the borrower for a period not to exceed 

120 days; and 

(D) Informs the borrower that the suspension of collection activity described in paragraph 

(b)(2)(ii)(C) of this section will end after 120 days and the collection will resume on the loans if the 

borrower does not submit a total and permanent disability discharge application to the Secretary within 

that time. 

Commented [A1]: The Department has added language for 

Perkins and FFEL loans to match the proposed language in DL.
TPD discharge proposed regulatory text session three 2

(iii) If the borrower fails to submit an application for a total and permanent disability discharge to 

the Secretary within 120 days, collection resumes on the borrower's title IV loans. 

(iv) The borrower must submit to the Secretary an application for total and permanent disability 

discharge on a form approved by the Secretary. The application must contain -

(A) A certification by a physician, who is a doctor of medicine or osteopathy legally authorized to 

practice in a State, that the borrower is totally and permanently disabled as defined in § 674.51(aa)(1); 

(B) A certification by a nurse practitioner or physician’s assistant licensed by a State or a licensed 

certified psychologist at the independent practice level, that the borrower is totally and permanently 

disabled as defined in §674.51(aa)(1);

(C) A Social Security Administration (SSA) Benefit Planning Query (BPQY) or an SSA notice of award

or other documentation deemed acceptable by the Secretary indicating that

(1) The borrower qualifies for Social Security Disability Insurance (SSDI) or Supplemental Security 

Income (SSI) benefits and the borrower's next scheduled disability review will be within five to seven 

years;

(2) The borrower qualifies for SSDI or SSI benefits and the borrower’s next scheduled disability 

review will be within three years, and that the borrower’s eligibility for disability benefits in the threeyear review category has been renewed at least once;

(3) The borrower has a disability onset date for SSDI or SSI of at least five years prior or has been 

receiving benefits for a least five years prior to the application for TPD.

(4) The borrower qualifies for the SSA compassionate allowance program; or

(5) For borrower’s currently receiving SSA retirement benefits, documentation that, prior to the 

borrower qualifying for SSA retirement benefits, the borrower met any of the requirements in 

paragraph (b)(2)(iv)(C) of this section.(v) The borrower must submit the application described in 

paragraph (b)(2)(iv) of this section to the Secretary within 90 days of the date the physician, nurse 

practitioner, physician’s assistant or psychologist certifies the application, if applicable. 

(vi) After the Secretary receives the application described in paragraph (b)(2)(iv) of this section, the 

Secretary notifies the holders of the borrower's title IV loans that the Secretary has received a total and 

permanent disability discharge application from the borrower. 

(vii) If the application is incomplete, the Secretary notifies the borrower of the missing information 

and requests the missing information from the borrower, the borrower's representative, or the 

physician, nurse practitioner, physician’s assistant or psychologist who provided the certification, as 

appropriate. The Secretary does not make a determination of eligibility until the application is complete. 

(viii) The lender notification described in paragraph (b)(2)(vi) of this section directs the borrower's 

loan holders to suspend collection activity or maintain the suspension of collection activity on the 

borrower's title IV loans. 

Commented [A2]: Disability onset date at least five years prior 

to application. Flagged here and included in conforming language 

for all loan programs.
TPD discharge proposed regulatory text session three 3

(ix) After the Secretary receives a disability discharge application, the Secretary sends a notice to 

the borrower that -

(A) States that the application will be reviewed by the Secretary; 

(B) Informs the borrower that the borrower's lenders will suspend collection activity or maintain 

the suspension of collection activity on the borrower's title IV loans while the Secretary reviews the 

borrower's application for discharge; and 

(C) Explains the process for the Secretary's review of total and permanent disability discharge 

applications. 

(3) Secretary's review of the total and permanent disability discharge application. (i) If, after 

reviewing the borrower's completed application, the Secretary determines that the data described in 

paragraph (b)(2) of this section supports the conclusion that the borrower is totally and permanently 

disabled as defined in § 674.51(aa)(1), the borrower is considered totally and permanently disabled as of 

the date -

(A) The physician, nurse practitioner, physician’s assistant, or psychologist certified the borrower's 

application; or 

(B) The Secretary received the SSA data described in paragraph (b)(2)(iv)(C) of this section. 

(ii) If the Secretary determines that the borrower's application does not conclusively prove that the 

borrower is totally and permanently disabled as defined in § 674.51(aa)(1) the Secretary may require 

the borrower to submit additional medical evidence. As part of the Secretary's review of the borrower's 

discharge application, the Secretary may require and arrange for an additional review of the borrower's 

condition by an independent physician or other medical professional identified by the Secretary at no 

expense to the borrower. 

(iii) After determining that the borrower is totally and permanently disabled as defined in § 

674.51(aa)(1), the Secretary notifies the borrower and the borrower's lenders that the application for a 

disability discharge has been approved. With this notification, the Secretary provides the date the 

physician, nurse practitioner, physician’s assistant, or psychologist certified the borrower's loan 

discharge application or the date the Secretary received the SSA data described in paragraph 

(b)(2)(iv)(C) of this section and directs each institution holding a Defense, NDSL, or Perkins Loan made to 

the borrower to assign the loan to the Secretary. 

(iv) The institution must assign the loan to the Secretary within 45 days of the date of the notice 

described in paragraph (b)(3)(iii) of this section. 

(v) After the loan is assigned, the Secretary discharges the borrower's obligation to make further 

payments on the loan and notifies the borrower and the institution that the loan has been discharged. 

The notification to the borrower explains the terms and conditions under which the borrower's 

obligation to repay the loan will be reinstated, as specified in paragraph (b)(6) of this section. Any 

payments received after the date the physician, nurse practitioner, physician’s assistant, or psychologist

certified the borrower's loan discharge application or the date the Secretary received the SSA data 
TPD discharge proposed regulatory text session three 4

described in paragraph (b)(2)(iv)(C) of this section are returned to the person who made the payments 

on the loan in accordance with paragraph (b)(8) of this section. 

(vi) If the Secretary determines that the physician, nurse practitioner, physician’s assistant, or 

psychologist certification or the SSA data described in paragraph (b)(2)(iv)(C) of this section provided by 

the borrower does not support the conclusion that the borrower is totally and permanently disabled as 

defined in § 674.51(aa)(1), the Secretary notifies the borrower and the institution that the application 

for a disability discharge has been denied. The notification includes -

(A) The reason or reasons for the denial; 

(B) A statement that the loan is due and payable to the institution under the terms of the 

promissory note and that the loan will return to the status that would have existed had the total and 

permanent disability discharge application not been received; 

(C) A statement that the institution will notify the borrower of the date the borrower must resume 

making payments on the loan; 

(D) An explanation that the borrower is not required to submit a new total and permanent 

disability discharge application if the borrower requests that the Secretary re-evaluate the application 

for discharge by providing, within 12 months of the date of the notification, additional information that 

supports the borrower's eligibility for discharge; and 

(E) An explanation that if the borrower does not request re-evaluation of the borrower's prior 

discharge application within 12 months of the date of the notification, the borrower must submit a new 

total and permanent disability discharge application to the Secretary if the borrower wishes the 

Secretary to re-evaluate the borrower's eligibility for a total and permanent disability discharge. 

(vii) If the borrower requests re-evaluation in accordance with paragraph (b)(3)(vi)(D) of this 

section or submits a new total and permanent disability discharge application in accordance with 

paragraph (b)(3)(vi)(E) of this section, the request must include new information regarding the 

borrower's disabling condition that was not provided to the Secretary in connection with the prior 

application at the time the Secretary reviewed the borrower's initial application for a total and 

permanent disability discharge. 

(4) Treatment of disbursements made during the period from the date of the physician, nurse 

practitioner, physician’s assistant or psychologist certification or the date the Secretary received the SSA 

data described in paragraph (b)(2)(iv)(C) of this section until the date of discharge. If a borrower received 

a title IV loan or TEACH Grant before the date the physician, nurse practitioner, physician’s assistant, or 

psychologist certified the borrower's discharge application or before the date the Secretary received the 

SSA data described in paragraph (b)(2)(iv)(C) of this section and a disbursement of that loan or grant is 

made during the period from the date of the physician, nurse practitioner, physician’s assistant, or 

psychologist certification or the date the Secretary received the SSA data described in paragraph 

(b)(2)(iv)(C) of this section until the date the Secretary grants a discharge under this section, the 

processing of the borrower's loan discharge application will be suspended until the borrower ensures 

that the full amount of the disbursement has been returned to the loan holder or to the Secretary, as 

applicable. 
TPD discharge proposed regulatory text session three 5

(5) Receipt of new title IV loans or TEACH Grants after the date of the physician, nurse practitioner, 

physician’s assistant, or psychologist certification or after the date the Secretary received the SSA data 

described in paragraph (b)(2)(iv)(C) of this section. If a borrower receives a disbursement of a new title 

IV loan or receives a new TEACH Grant made on or after the date the physician, nurse practitioner, 

physician’s assistant, or psychologist certified the borrower's discharge application or on or after the 

date the Secretary received the SSA data described in paragraph (b)(2)(iv)(C) of this section and before 

the date the Secretary grants a discharge under this section, the Secretary denies the borrower's 

discharge request and collection resumes on the borrower's loans. 

(6) Conditions for reinstatement of a loan after a total and permanent disability discharge. (i) The 

Secretary reinstates the borrower's obligation to repay a loan that was discharged in accordance with 

paragraph (b)(3)(v) of this section if, within three years after the date the Secretary granted the 

discharge, the borrower receives a new TEACH Grant or new loan under the Perkins or Direct Loan 

programs, except for a Direct Consolidation Loan that includes loans that were not discharged.-

(ii) If the borrower's obligation to repay a loan is reinstated, the Secretary -

(A) Notifies the borrower that the borrower's obligation to repay the loan has been reinstated; 

(B) Returns the loan to the status that would have existed had the total and permanent disability 

discharge application not been received; and 

(C) Does not require the borrower to pay interest on the loan for the period from the date the loan 

was discharged until the date the borrower's obligation to repay the loan was reinstated. 

(iii) The Secretary's notification under paragraph (b)(6)(ii)(A) of this section will include -

(A) The reason or reasons for the reinstatement; 

(B) An explanation that the first payment due date on the loan following reinstatement will be no 

earlier than 90 days after the date of the notification of reinstatement; and 

(C) Information on how the borrower may contact the Secretary if the borrower has questions 

about the reinstatement or believes that the obligation to repay the loan was reinstated based on 

incorrect information. 

(8) Payments received after the certification of total and permanent disability. (i) If the institution 

receives any payments from or on behalf of the borrower on or attributable to a loan that has been 

assigned to the Secretary based on the Secretary's determination of eligibility for a total and permanent 

disability discharge, the institution must return the payments to the sender. 
TPD discharge proposed regulatory text session three 6

(ii) At the same time that the institution returns the payments, it must notify the borrower that 

there is no obligation to make payments on the loan after it has been discharged due to a total and 

permanent disability unless the loan is reinstated in accordance with § 674.61(b)(6), or the Secretary 

directs the borrower otherwise. 

(iii) When the Secretary discharges the loan, the Secretary returns to the sender any payments 

received on the loan after the date the borrower became totally and permanently disabled. 

* * * * *

(d) Discharge without an application. (1) The Secretary will 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) described in paragraph (b)(2)(iv)(C) . 

(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 borrower's 

title IV loans unless the borrower notifies the Secretary, by a date specified in the Secretary's 

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 borrower’s 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 serviceconnected 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 data described in paragraph (b)(2)(iv)(C) of 

this section; and 
TPD discharge proposed regulatory text session three 7

(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 (e)(2) of this section; 

and

(ii) After the loan is assigned, the Secretary discharges the loan in accordance with paragraph 

(b)(3)(v) of this section.

(5) If the borrower notifies the Secretary that they do not wish to receive the discharge, the 

borrower will remain responsible for repayment of the borrower's loans in accordance with the terms 

and conditions of the promissory notes that the borrower signed.

(f) No Federal reimbursement. No Federal reimbursement is made to an institution for discharge of 

loans due to death or disability. 

* * * * * 

Part 682—Federal Family Education Loan (FFEL) Program

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

payments. 

* * * * * 

(c) (1) Total and permanent disability. (i) A borrower's loan is discharged if the borrower becomes 

totally and permanently disabled, as defined in § 682.200(b), and satisfies the eligibility requirements in 

this section. 

(ii) For a borrower who becomes totally and permanently disabled as described in paragraph (1) of 

the definition of that term in § 682.200(b), the borrower's loan discharge application is processed in 

accordance with paragraphs (c)(2) through (c)(8) of this section. 

(iii) For a veteran who is totally and permanently disabled as described in paragraph (2) of the 

definition of that term in § 682.200(b), the veteran's loan discharge application is processed in 

accordance with paragraph (c)(9) of this section. 

(iv) For purposes of this paragraph (c) -

(A) A borrower's representative or a veteran's representative is a member of the borrower's family, 

the borrower's attorney, or another individual authorized to act on behalf of the borrower in connection 

with the borrower's total and permanent disability discharge application. References to a “borrower” or 

a “veteran” include, if applicable, the borrower's representative or the veteran's representative for 

purposes of applying for a total and permanent disability discharge, providing notifications or 

information to the Secretary, and receiving notifications from the Secretary; 

(B) References to “the lender” mean the guaranty agency if the guaranty agency is the holder of 

the loan at the time the borrower applies for a total and permanent disability discharge, except that the 

total and permanent disability discharge claim filing requirements applicable to a lender do not apply to 

the guaranty agency; and 
TPD discharge proposed regulatory text session three 8

(C) References to “the applicable guaranty agency” mean the guaranty agency that guarantees the 

loan. 

(2) Discharge application process for a borrower who is totally and permanently disabled as 

described in paragraph (1) of the definition of that term in § 682.200(b). (i) If the borrower notifies the 

lender that the borrower claims to be totally and permanently disabled as described in paragraph (1) of 

the definition of that term in § 682.200(b), the lender must direct the borrower to notify the Secretary 

of the borrower's intent to submit an application for total and permanent disability discharge and 

provide the borrower with the information needed for the borrower to notify the Secretary. 

(ii) If the borrower notifies the Secretary of the borrower's intent to apply for a total and 

permanent disability discharge, the Secretary -

(A) Provides the borrower with information needed for the borrower to apply for a total and 

permanent disability discharge; 

(B) Identifies all title IV loans owed by the borrower and notifies the lenders of the borrower's 

intent to apply for a total and permanent disability discharge; 

(C) Directs the lenders to suspend efforts to collect from the borrower for a period not to exceed 

120 days; and 

(D) Informs the borrower that the suspension of collection activity described in paragraph 

(c)(2)(ii)(C) of this section will end after 120 days and collection will resume on the loans if the borrower 

does not submit a total and permanent disability discharge application to the Secretary within that time; 

(iii) If the borrower fails to submit an application for a total and permanent disability discharge to 

the Secretary within 120 days, collection resumes on the borrower's title IV loans, and the lender is 

deemed to have exercised forbearance of principal and interest from the date it suspended collection 

activity. The lender may capitalize, in accordance with § 682.202(b), any interest accrued and not paid 

during that period, except that if the lender is a guaranty agency it may not capitalize accrued interest. 

(iv) The borrower must submit to the Secretary an application for a total and permanent disability 

discharge on a form approved by the Secretary. The application must contain -

(A) A certification by a physician, who is a doctor of medicine or osteopathy legally authorized to 

practice in a State, that the borrower is totally and permanently disabled as described in paragraph (1) 

of the definition of that term in § 682.200(b); 

(B) A certification by a nurse practitioner or physician’s assistant licensed by a State, or a licensed 

or certified psychologist at the independent practice level, that the borrower is totally and permanently 

disabled as described in paragraph (1) of the definition of that term in §682.200(b); or

(C) An SSA Benefit Planning Query (BPQY) or an SSA notice of award or other documentation 

deemed acceptable by the Secretary, indicating that—
TPD discharge proposed regulatory text session three 9

(1) The borrower qualifies for Social Security Disability Insurance (SSDI) or Supplemental Security 

Income (SSI) benefits and the borrower's next scheduled disability review will be within five to seven 

years; 

(2) The borrower qualifies for SSDI or SSI benefits and the borrower’s next scheduled disability 

review will be within three years, and that the borrower’s eligibility for disability benefits in the threeyear review category has been renewed at least once; 

(3) The borrower has a disability onset date for SSSDI or SSI of at least five years prior or has been 

receiving benefits for a least five years prior to the application for TPD.

(4) The borrower qualifies for the SSA compassionate allowance program; or

(5) For borrower is currently receiving SSA retirement benefits, documentation that, prior to the 

borrower qualifying for SSA retirement benefits, the borrower met any of the requirements in 

paragraph (c)(2) (iv)(C) of this section

(v) The borrower must submit the application described in paragraph (c)(2)(iv) of this section to the 

Secretary within 90 days of the date the physician, nurse practitioner, physician’s assistant, or 

psychologist certifies the application, if applicable. 

(vi) After the Secretary receives the application described in paragraph (c)(2)(iv) of this section, the 

Secretary notifies the holders of the borrower's title IV loans, that the Secretary has received a total and 

permanent disability discharge application from the borrower. The holders of the loans must notify the 

applicable guaranty agencies that the total and permanent disability discharge application has been 

received. 

(vii) If the application is incomplete, the Secretary notifies the borrower of the missing information 

and requests the missing information from the borrower or the physician, nurse practitioner, physician’s 

assistant or psychologist who provided the certification, as appropriate. The Secretary does not make a 

determination of eligibility until the application is complete. 

(viii) The lender notification described in paragraph (c)(2)(vi) of this section directs the borrower's 

loan holders to suspend collection activity or maintain the suspension of collection activity on the 

borrower's title IV loans. 

(ix) After the Secretary receives the disability discharge application, the Secretary sends a notice to 

the borrower that -

(A) States that the application will be reviewed by the Secretary; 

(B) Informs the borrower that the borrower's lenders will suspend collection activity or maintain 

the suspension of collection activity on the borrower's title IV loans while the Secretary reviews the 

borrower's application for a discharge; and 

(C) Explains the process for the Secretary's review of total and permanent disability discharge 

applications. 

Commented [A3]: See note above regarding use of "disability 

onset date."
TPD discharge proposed regulatory text session three 10

(3) Secretary's review of total and permanent disability discharge application. (i) If, after reviewing 

the borrower's completed application, the Secretary determines that the data described in paragraph 

(c)(2)(iv) of this section supports the conclusion that the borrower is totally and permanently disabled, 

as described in paragraph (1) of the definition of that term in § 682.200(b), the borrower is considered 

totally and permanently disabled -

(A) As of the date the physician, nurse practitioner, physician’s assistant or psychologist certified 

the borrower's application; or 

(B) As of the date the Secretary received the SSA data described in paragraph (c)(2)(iv)(C) of this 

section(ii) If the Secretary determines that the borrower's application does not conclusively prove that 

the borrower is totally and permanently disabled as described in paragraph (1) of the definition of that 

term in § 682.200(b) the Secretary may require the borrower to submit additional medical evidence. As 

part of the Secretary's review of the borrower's discharge application, the Secretary may require and 

arrange for an additional review of the borrower's condition by an independent physician or other 

medical professional identified by the Secretary at no expense to the borrower. 

(iii) After determining that the borrower is totally and permanently disabled as described in 

paragraph (1) of the definition of that term in § 682.200(b), the Secretary notifies the borrower and the 

borrower's lenders that the application for a disability discharge has been approved. With this 

notification, the Secretary provides the date the physician, nurse practitioner, physician’s assistant, or 

psychologist certified the borrower's loan discharge application or the date the Secretary received the 

SSA data described in paragraph (c)(2)(iv)(C) of this section and directs each lender to submit a disability 

claim to the guaranty agency so the loan can be assigned to the Secretary. The Secretary returns any 

payment received by the Secretary after the date the physician, nurse practitioner, physician’s assistant, 

or psychologist certified the borrower's loan discharge application or received the SSA data described in 

paragraph (c)(2)(iv)(C) of this section. to the person who made the payment. 

(iv) After the loan is assigned, the Secretary discharges the borrower's obligation to make further 

payments on the loan and notifies the borrower and the lender that the loan has been discharged. The 

notification to the borrower explains the terms and conditions under which the borrower's obligation to 

repay the loan will be reinstated, as specified in paragraph (c)(6)(i) of this section. 

(v) If the Secretary determines that the physician, nurse practitioner, physician’s assistant, or 

psychologist certification or SSA data described in paragraph (c)(2)(iv)(C) of this section does not 

support the conclusion that the borrower is totally and permanently disabled as described in paragraph 

(1) of the definition of that term in § 682.200(b), the Secretary notifies the borrower and the lender that 

the application for a disability discharge has been denied. The notification includes -

(A) The reason or reasons for the denial; 

(B) A statement that the loan is due and payable to the lender under the terms of the promissory 

note and that the loan will return to the status that would have existed had the total and permanent 

disability discharge application not been received; 

(C) A statement that the lender will notify the borrower of the date the borrower must resume 

making payments on the loan; 
TPD discharge proposed regulatory text session three 11

(D) An explanation that the borrower is not required to submit a new total and permanent 

disability discharge application if the borrower requests that the Secretary re-evaluate the application 

for discharge by providing, within 12 months of the date of the notification, additional information that 

supports the borrower's eligibility for discharge; and 

(E) An explanation that if the borrower does not request re-evaluation of the borrower's prior 

discharge application within 12 months of the date of the notification, the borrower must submit a new 

total and permanent disability discharge application to the Secretary if the borrower wishes the 

Secretary to re-evaluate the borrower's eligibility for a total and permanent disability discharge. 

(vi) If the borrower requests re-evaluation in accordance with paragraph (c)(3)(v)(D) of this section 

or submits a new total and permanent disability discharge application in accordance with the request 

must include new information regarding the borrower’s disabling condition that was not provided to the 

Secretary in connection with the prior application at the time the Secretary reviewed the borrower's 

initial application for a total and permanent disability discharge. 

(4) Treatment of disbursements made during the period from the date of the physician, nurse 

practitioner, physician’s assistant or psychologist certification or the date the Secretary received the SSA

data described in paragraph (c)(2)(iv)(C) of this section until the date of discharge. If a borrower received 

a title IV loan or TEACH Grant before the date the physician, nurse practitioner, physician’s assistant, or 

psychologist certified the borrower's discharge application or before the date the Secretary received the 

SSA data described in paragraph (c)(2)(iv)(C) of this section and a disbursement of that loan or grant is 

made during the period from the date of the physician, nurse practitioner, physician’s assistant, or 

psychologist certification or the Secretary's receipt of the SSA data described in paragraph(c)(2)(iv)(C) of 

this section until the date the Secretary grants a discharge under this section, the processing of the 

borrower’s loan discharge request will be suspended until the borrower ensures that the full amount of 

the disbursement has been returned to the loan holder or to the Secretary, as applicable. 

(5) Receipt of new title IV loans or TEACH Grants after the date of the ’physician, nurse practitioner, 

physician’s assistant, or psychologist certification or after the date the Secretary received the SSA data 

described in paragraph (c)(2)(iv)(C) of this section. If a borrower receives a disbursement of a new title IV 

loan or receives a new TEACH Grant made on or after the date the physician, nurse practitioner, 

physician’s assistant or psychologist certified the borrower's discharge application or the date the 

Secretary received the SSA data described in paragraph (c)(2)(iv)(C) of this section and before the date 

the Secretary grants a discharge under this section, the Secretary denies the borrower's discharge 

request and collection resumes on the borrower's loans. 

(6) Conditions for reinstatement of a loan after a total and permanent disability discharge. (i) The 

Secretary reinstates the borrower's obligation to repay a loan that was discharged in accordance with 

(c)(3)(iii) of this section if, within three years after the date the Secretary granted the discharge, the 

borrower receives a new TEACH Grant or a new loan under the Perkins or Direct Loan programs, except 

for a Direct Consolidation Loan that includes loans that were not discharged.
TPD discharge proposed regulatory text session three 12

’

(ii) If the borrower's obligation to repay a loan is reinstated, the Secretary -

(A) Notifies the borrower that the borrower's obligation to repay the loan has been reinstated; 

(B) Returns the loan to the status that would have existed if the total and permanent disability 

discharge application had not been received; and 

(C) Does not require the borrower to pay interest on the loan for the period from the date the loan 

was discharged until the date the borrower's obligation to repay the loan was reinstated. 

(’ii) The Secretary's notification under paragraph (c)(6)(ii)(A) of this section will include -

(A) The reason or reasons for the reinstatement; 

(B) An explanation that the first payment due date on the loan following reinstatement will be no 

earlier than 90 days after the date of the notification of reinstatement; and 

(C) Information on how the borrower may contact the Secretary if the borrower has questions 

about the reinstatement or believes that the obligation to repay the loan was reinstated based on 

incorrect information. 

–’’’

’

(7) Lender and guaranty agency actions. (i) If the Secretary approves the borrower's total and 

permanent disability discharge application -

(A) The lender must submit a disability claim to the guaranty agency, in accordance with paragraph 

(g)(1) of this section; 

(B) If the claim satisfies the requirements of paragraph (g)(1) of this section and § 682.406, the 

guaranty agency must pay the claim submitted by the lender; 

(C) After receiving a claim payment from the guaranty agency, the lender must return to the 

sender any payments received by the lender after the date the physician, nurse practitioner, physician’s

assistant, or psychologist n certified the borrower's loan discharge application or after the date the 

Secretary received the SSA data described in paragraph (c)(2)(iv)(C) of this section as well as any 

payments received after claim payment from or on behalf of the borrower; 

(D) The Secretary reimburses the guaranty agency for a disability claim paid to the lender after the 

agency pays the claim to the lender; and 

(E) The guaranty agency must assign the loan to the Secretary within 45 days of the date the 

guaranty agency pays the disability claim and receives the reimbursement payment, or within 45 days of 
TPD discharge proposed regulatory text session three 13

the date the guaranty agency receives the notice described in paragraph (c)(3)(iii) of this section if a 

guaranty agency is the lender. 

(ii) If the Secretary does not approve the borrower's total and permanent disability discharge 

request, the lender must resume collection of the loan and is deemed to have exercised forbearance of 

payment of both principal and interest from the date collection activity was suspended. The lender may 

capitalize, in accordance with § 682.202(b), any interest accrued and not paid during that period, except 

if the lender is a guaranty agency it may not capitalize accrued interest. 

* * * * *

(10) Discharge without an application. (i) The Secretary will 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) described in paragraph

(c)(2)(iv)(C) of this section 

(11) Notifications and return of payments. (i) After determining that a borrower qualifies for a 

total and permanent disability discharge under paragraph (c)(10) of this section, the Secretary sends a 

notification to the borrower informing the borrower that the Secretary will discharge the borrower's 

title IV loans unless the borrower notifies the Secretary, by a date specified in the Secretary's 

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 borrower’s loan holders that the borrower has been approved for a 

disability discharge. With this notification the Secretary provides the effective date of the determination 

by VA or the date the Secretary received the SSA data described in paragraph (c)(2)(iv)(C) of this section

and directs the holder of each FFELP loan made to the borrower to submit a disability claim to the 

guaranty agency in accordance with paragraph (g)(1) of this section.

(iii) If the claim meets the requirements of paragraph (g)(1) of this section and §682.406, the 

guaranty agency pays the claim and must—

(A) Discharge the loan, in the case of a discharge based on data from VA; or

(B) Assign the loan to the Secretary, in the case of a discharge based on data from the SSA.

(iv) The Secretary reimburses the guaranty agency for a disability claim after the agency pays the 

claim to the lender.

(v) Upon receipt of the claim payment from the guaranty agency, the loan holder returns to the 

person who made the payments any payments received on or after—

(A) The effective date of the determination by VA that the borrower is unemployable due to a 

service-connected disability; or
TPD discharge proposed regulatory text session three 14

(B) The date the Secretary received the SSA data described in paragraph (c)(2)(iv)(C) of this section.

(vi) For a loan that is assigned to the Secretary for discharge based on data from the SSA, the 

Secretary discharges the loan in accordance with paragraph (c)(3)(iv) of this section.

(vii) If the borrower notifies the Secretary that they do not wish to receive the discharge, the 

borrower will remain responsible for repayment of the borrower's loans in accordance with the terms 

and conditions of the promissory notes that the borrower signed.

* * * * * 

Part 685--William D. Ford Federal Direct Loan Program

§685.213 Total and permanent disability discharge.

(a) General. (1) A borrower's Direct Loan is discharged if the borrower becomes totally and 

permanently disabled, as defined in §685.102(b), and satisfies the eligibility requirements in this section.

(2) For a borrower who becomes totally and permanently disabled as described in paragraph (1) of 

the definition of that term in §685.102(b), the borrower's loan discharge application is processed in 

accordance with paragraph (b) of this section.

(3) For veterans who are totally and permanently disabled as described in paragraph (2) of the 

definition of that term in §685.102(b), the veteran's loan discharge application is processed in 

accordance with paragraph (c) of this section.

(4) For purposes of this section, a borrower's representative or a veteran's representative is a 

member of the borrower's family, the borrower's attorney, or another individual authorized to act on 

behalf of the borrower in connection with the borrower's total and permanent disability discharge 

application. References to a “borrower” or a “veteran” include, if applicable, the borrower's 

representative or the veteran's representative for purposes of applying for a total and permanent 

disability discharge, providing notifications or information to the Secretary, and receiving notifications 

from the Secretary.

(b) Discharge application process for a borrower who is totally and permanently disabled as 

described in paragraph (1) of the definition of that term in §685.102(b)—(1) Borrower application for 

discharge. Except as provided in paragraph (d)(2) of this section, to qualify for a discharge of a Direct 

Loan based on a total and permanent disability, a borrower must submit a discharge application to the 

Secretary on a form approved by the Secretary. If the borrower notifies the Secretary that the borrower 

claims to be totally and permanent disabled prior to submitting a total and permanent disability 

discharge application, the Secretary—

(i) Provides the borrower with information needed for the borrower to apply for a total and 

permanent disability discharge;
TPD discharge proposed regulatory text session three 15

(ii) Suspends collection activity on any of the borrower's title IV loans held by the Secretary, and 

notifies the borrower's other title IV loan holders to suspend collection activity on the borrower's title IV 

loans for a period not to exceed 120 days; and

(iii) Informs the borrower that the suspension of collection activity will end after 120 days and 

collection will resume on the loans if the borrower does not submit a total and permanent disability 

discharge application to the Secretary within that time.

(2) Physician Disability certification or Social Security Administration (SSA) disability notice of award

determination. The application must contain—

(i) A certification by a physician, who is a doctor of medicine or osteopathy legally authorized to 

practice in a State, that the borrower is totally and permanently disabled as described in paragraph (1) 

of the definition of that term in §685.102(b); or

(ii) A certification by a nurse practitioner or physician’s assistant licensed by a State, or a licensed 

or certified psychologist at the independent practice level, that the borrower is totally and permanently 

disabled as described in paragraph (1) of the definition of that term in §685.102(b);

(iii) An SSA Benefit Planning Query (BPQY) or an SSA notice of award, or other documentation 

deemed acceptable by the Secretary, indicating that—

(A) The borrower qualifies for Social Security Disability Insurance (SSDI) or Supplemental Security 

Income (SSI) benefits and the borrower's next scheduled disability review will be within five to seven 

years; 

(B) The borrower qualifies for SSDI or SSI benefits and the borrower’s next scheduled disability 

review will be within three years, and that the borrower’s eligibility for disability benefits in the threeyear review category has been renewed at least once;

(C) The borrower has a disability onset date for SSSDI or SSI of at least five years prior or has been 

receiving benefits for at least five years prior to the application for TPD.

(D) The borrower qualifies for the SSA compassionate allowance payments program,; or

(E) For borrower’s currently receiving SSA retirement benefits, documentation that, prior to the 

borrower qualifying for SSA retirement benefits, the borrower met any of the requirements in 

paragraphs (iii)(A) through (iii)(D) of this section. qualified for SSDI or SSI benefits with a disability review 

period of within five to seven years

(3) Deadline for application submission. The borrower must submit the application described in 

paragraph (b)(1) of this section to the Secretary within 90 days of the date the physician, nurse 

practitioner, physician’s assistant, or psychologist certifies the application, if applicable. Upon receipt of 

the borrower's application, the Secretary—

(i) Identifies all title IV loans owed by the borrower, notifies the lenders that the Secretary has 

received a total and permanent disability discharge application from the borrower and directs the 

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Commented [A4]: See note above regarding use of disability 

onset date.

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TPD discharge proposed regulatory text session three 16

lenders to suspend collection activity or maintain the suspension of collection activity on the borrower's 

title IV loans;

(ii) If the application is incomplete, notifies the borrower of the missing information and requests 

the missing information from the borrower or the physician, nurse practitioner, physician’s assistant, or 

psychologist who certified the application, as appropriate, and does not make a determination of

eligibility for discharge until the application is complete;

(iii) Notifies the borrower that no payments are due on the loan while the Secretary determines 

the borrower's eligibility for discharge; and

(iv) Explains the process for the Secretary's review of total and permanent disability discharge 

applications.

(4) Determination of eligibility. (i) If, after reviewing the borrower's completed application, the 

Secretary determines that the physician's certification or the SSA notice of award for SSDI or SSI benefits

data described in paragraph (b)(2) of this section §685.213(b)(2) supports the conclusion that the 

borrower meets the criteria for a total and permanent disability discharge, as described in paragraph (1) 

of the definition of that term in §685.102(b), the borrower is considered totally and permanently 

disabled—

(A) As of the date the physician, nurse practitioner, or physician’s assistant, or psychologist

certified the borrower's application; or

(B) As of the date the Secretary received the SSA notice of award for SSDI data described in

paragraph (b)(2)(iii) of this section. §685.213(b)(2)(iii) or (iv).

(ii) The Secretary will analyze certification from physicians, nurse practitioners, or physician 

assistants that suggest patterns of concern, such as large numbers of TPD applications certified by an 

individual, and may decline to accept the certifications at the Secretary’s discretion.

(iii) The Secretary may require the borrower to submit additional medical evidence iIf the Secretary 

determines that the borrower's application does not conclusively prove that the borrower is totally and 

permanently disabled as described in paragraph (1) of the definition of that term in §685.102(b), the 

Secretary may require the borrower to submit additional medical evidence. As part of the Secretary's 

review of the borrower's discharge application, the Secretary may require and arrange for an additional 

review of the borrower's condition by an independent physician or other medical professional identified 

by the Secretary at no expense to the borrower.

(iiiiiiv) After determining that the borrower is totally and permanently disabled, as described in 

paragraph (1) of the definition of that term in §685.102(b), the Secretary discharges the borrower's 

obligation to make any further payments on the loan, notifies the borrower that the loan has been 

discharged, and returns to the person who made the payments on the loan any payments received after 

the date the physician, nurse practitioner, or physician’s assistant, or psychologist certified the 

borrower's loan discharge application or the date the Secretary received the SSA notice of award for 

SSDI or SSI benefits. data described in paragraph §685.213(b)(2)(iii) of this section. The notification to 

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TPD discharge proposed regulatory text session three 17

the borrower explains the terms and conditions under which the borrower's obligation to repay the loan 

will be reinstated, as specified in paragraph (b)(7)(i) of this section.

(ivv) If the Secretary determines that the physician's physician, nurse practitioner, or physician’s 

assistant, or psychologist certification or the SSA notice of award for SSDI or SSI benefits data described 

in paragraph §685.213(b)(2)(iii) of this section provided by the borrower does not support the 

conclusion that the borrower is totally and permanently disabled, as described in paragraph (1) of the 

definition of that term in §685.102(b), the Secretary notifies the borrower that the application for a 

disability discharge has been denied. The notification to the borrower includes—

(A) The reason or reasons for the denial;

(B) A statement that the loan is due and payable to the Secretary under the terms of the 

promissory note and that the loan will return to the status that would have existed if the total and 

permanent disability discharge application had not been received;

(C) The date that the borrower must resume making payments;

(D) An explanation that the borrower is not required to submit a new total and permanent 

disability discharge application if the borrower requests that the Secretary re-evaluate the borrower's 

application for discharge by providing, within 12 months of the date of the notification, additional 

information that supports the borrower's eligibility for discharge; and

(E) An explanation that if the borrower does not request re-evaluation of the borrower's prior 

discharge application within 12 months of the date of the notification, the borrower must submit a new 

total and permanent disability discharge application to the Secretary if the borrower wishes the 

Secretary to re-evaluate the borrower's eligibility for a total and permanent disability discharge.

(vvi) If the borrower requests re-evaluation in accordance with paragraph (b)(4)(iv)(D) of this 

section or submits a new total and permanent disability discharge application in accordance with 

paragraph (b)(4)(iv)(E) of this section, the request must include new information regarding the 

borrower's disabling condition that was not provided to the Secretary in connection with the prior 

application at the time the Secretary reviewed the borrower's initial application for total and permanent 

disability discharge.

(5) Treatment of disbursements made during the period from the date of the physician's physician, 

nurse practitioner, or physician’s assistant, or psychologist certification or the date the Secretary 

received the SSA notice of award for SSDI or SSI benefits data described in paragraph §685.213(b)(2)(iii)

of this section until the date of discharge. If a borrower received a title IV loan or TEACH Grant before 

the date the physician, nurse practitioner, or physician’s assistant, or psychologist certified the 

borrower's discharge application or before the date the Secretary received the SSA notice of award for 

SSDI or SSI benefits data described in paragraph §685.213(b)(2)(iii) of this section and a disbursement of 

that loan or grant is made during the period from the date of the physician's physician, nurse 

practitioner, or physician’s assistant, or psychologist certification or the receipt of the SSA notice of 

award for SSDI or SSI benefits data described in paragraph §685.213(b)(2)(iii) of this section until the 

date the Secretary grants a discharge under this section, the processing of the borrower's loan discharge 

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TPD discharge proposed regulatory text session three 18

request will be suspended until the borrower ensures that the full amount of the disbursement has been 

returned to the loan holder or to the Secretary, as applicable.

(6) Receipt of new title IV loans or TEACH Grants after the date of the physician's physician, nurse 

practitioner, or physician’s assistant, or psychologist certification, or after the date the Secretary 

received the SSA notice of award for SSDI or SSI benefits. data described in paragraph §685.213(b)(2)(iii)

of this section. If a borrower receives a disbursement of a new title IV loan or receives a new TEACH 

Grant made on or after the date the physician, nurse practitioner, or physician’s assistant, or 

psychologist certified the borrower's discharge application or on or after the date the Secretary received 

the SSA notice of award for SSDI or SSI benefits data described in paragraph §685.213(b)(2)(iii) of this 

section and before the date the Secretary grants a discharge under this section, the Secretary denies the 

borrower's discharge request and resumes collection on the borrower's loan.

(7) Conditions for reinstatement of a loan after a total and permanent disability discharge. (i) The 

Secretary reinstates a borrower's obligation to repay a loan that was discharged in accordance with 

paragraph (b)(4)(iii) of this section if, within three years after the date the Secretary granted the 

discharge, the borrower receives a new TEACH Grant or a new loan under the Perkins or Direct Loan 

programs, except for a Direct Consolidation Loan that includes loans that were not discharged. —

(A) Has annual earnings from employment that exceed 100 percent of the poverty guideline for a 

family of two, as published annually by the United States Department of Health and Human Services 

pursuant to 42 U.S.C. 9902(2);

(B) Receives a new TEACH Grant or a new loan under the Perkins or Direct Loan programs, except 

for a Direct Consolidation Loan that includes loans that were not discharged;

(C) Fails to ensure that the full amount of any disbursement of a title IV loan or TEACH Grant 

received prior to the discharge date that is made is returned to the loan holder or to the Secretary, as 

applicable, within 120 days of the disbursement date; or

(D) Receives a notice from the SSA indicating that the borrower is no longer disabled or that the 

borrower's continuing disability review will no longer be the five- to seven-year period indicated in the 

SSA notice of award for SSDI or SSI benefits.

(ii) If the borrower's obligation to repay the loan is reinstated, the Secretary—

(A) Notifies the borrower that the borrower's obligation to repay the loan has been reinstated;

(B) Returns the loan to the status that would have existed if the total and permanent disability 

discharge application had not been received; and

(C) Does not require the borrower to pay interest on the loan for the period from the date the loan 

was discharged until the date the borrower's obligation to repay the loan was reinstated.

(iii) The Secretary's notification under paragraph (b)(7)(ii)(A) of this section will include—

(A) The reason or reasons for the reinstatement;

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TPD discharge proposed regulatory text session three 19

(B) An explanation that the first payment due date on the loan following reinstatement will be no 

earlier than 60 90 days after the date of the notification of reinstatement; and

(C) Information on how the borrower may contact the Secretary if the borrower has questions 

about the reinstatement or believes that the obligation to repay the loan was reinstated based on 

incorrect information.

(8) Borrower's responsibilities after a total and permanent disability discharge. During the threeyear period described in paragraph (b)(7)(i) of this section, the borrower must—

(i) Promptly notify the Secretary of any changes in the borrower's address or phone number;

(ii) Promptly notify the Secretary if the borrower's annual earnings from employment exceed the 

amount specified in paragraph (b)(7)(i)(A) of this section;

(iii) Provide the Secretary, upon request, with documentation of the borrower's annual earnings 

from employment on a form provided by the Secretary; and

(iv) Promptly notify the Secretary if the borrower receives a notice from the SSA indicating that the 

borrower is no longer disabled or that the borrower's continuing disability review will no longer be the 

five- to seven-year period indicated in the SSA notice of award for SSDI or SSI benefits.

* * * * *

(d) Discharge without an application. 

(1) The Secretary will 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 showing that the borrower is 

unemployable due to a service-connected disability; or 

(ii)Obtains data from the Social Security Administration (SSA) described in paragraph (b)(2)(iii) of 

this section

(2) [Reserved] 

(e) Notification to the borrower. (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 borrower’s title IV loans 

unless the borrower notifies the Secretary, by a date specified in the Secretary’s 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 discharges the loan—

(i) In accordance with paragraph (b)(4)(iii) of this section for a discharge based on data from the 

SSA; or 

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TPD discharge proposed regulatory text session three 20

(ii) In accordance with paragraph (c)(2)(i) of this section for a discharge based on data from VA. 

(3) If the borrower notifies the Secretary that they do not wish to receive the discharge, the 

borrower will remain responsible for repayment of the borrower’s loans in accordance with the terms 

and conditions of the promissory notes that the borrower signed. 

* * * * *

Last updated 11/29/2021