Loan Discharges Due to Death

As you know, the U.S. Department of Education (ED) released a Dear Guaranty Agency Director Letter GEN-99-36 regarding revised procedures related to death and total and permanent disability discharge requests, see UHEAA Bulletin Volume 99 - Issue 09.  In that letter, ED provided the following interpretation of section 682.301(b)(2) of the regulations: "... it is appropriate to interpret the regulations to require, generally, that a death cancellation may only be granted based on an original or certified copy of the death certificate."  To address the rigid documentation requirements and be sensitive to the needs of the bereaved family, ED authorized guaranty agencies to extend the suspension of collection activities an additional 60 days if extra time is needed to obtain an original or certified copy. UHEAA believes it is ED's intent that lenders also have authorization for this additional 60-day period.  UHEAA will continue its requirement of an original or certified copy of the death certificate for discharge requests submitted on or after July 1, 2000, as stated in the UHEAA Bulletin mentioned above.

The Dear Guaranty Agency Director Letter GEN-99-36 can be obtained from ED's web site at http://ifap.ed.gov.  If you are unable to access ED's web site and would like a hard copy, please contact Lynda Reid 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 cjudd@utahsbr.edu.