- (a) In the event of an eligible borrower’s death, the division shall cancel the then outstanding balance of all of his or her loans, including any accrued interest thereon, without further obligation to the eligible borrower’s estate.
(b)
- (1) In the event of an eligible borrower’s total and permanent disability, the outstanding balance of all of his or her loans, including any accrued interest thereon, shall be canceled by the division without any further obligation by the eligible borrower upon receipt of a written statement as to the nature and effect of the total and permanent disability.
- (2) The division shall grant the loan cancellation following verification by the division with the eligible borrower’s attending physician or physicians of the total and permanent disability.
- (3) The division reserves the right to require a second opinion by a division-approved physician.