1. (a) Only loans held by an educational lending institution are eligible for assumption under the Mental Health Loan Assumption Program.

2. (b) Eligible educational loan programs include, but are not limited to:

   1. (1) The Federal Family Education Loan Program in 20 U.S.C. Sec. 1071 et seq.
   2. (2) The Federal Direct Loan Program in 20 U.S.C. Sec. 1087b et seq.

3. (c) The following fiscal liabilities are not eligible for assumption:

   1. (1) An educational loan(s) that has not been disbursed at the time the applicant signs a loan assumption application and a loan assumption agreement.
   2. (2) An educational loan that was used for the educational expenses of someone other than the applicant.
   3. (3) An educational loan that has been consolidated with a loan of another person or with a non-educational loan.
   4. (4) Lines of credit.
   5. (5) Home equity loans.
   6. (6) Credit card debt.
   7. (7) Business loans.
   8. (8) Mortgages.
   9. (9) Personal loans.
   10. (10) Other consumer loans.

Note: Authority cited: Section 5898, Welfare and Institutions Code. Reference: Section 5822, Welfare and Institutions Code.

History

1. New section filed 11-4-2009; operative 12-4-2009 (Register 2009, No. 45).