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Federal Register / Vol. 71, No.

249 / Thursday, December 28, 2006 / Rules and Regulations 78075

Authority: 31 U.S.C. 9701. installment agreement on or after ADDRESSES: Address all comments about
January 1, 2007, is $45. these interim final regulations to Mr.
■ Par. 2. Section 300.0 is amended by
* * * * * Brian Smith, U.S. Department of
revising paragraph (c) to read as follows: Education, 1990 K Street, NW., 8th
Kevin M. Brown, Floor, Washington, DC 20006.
§ 300.0 User fees; in general. Acting Deputy Commissioner for Services and Telephone: (202) 502–7551 or via the
* * * * * Enforcement. Internet at: Brian.Smith@ed.gov.
(c) Effective date. This part 300 is Approved: December 21, 2006. If you prefer to deliver your
applicable March 16, 1995, except that Eric Solomon, comments by hand or by using a courier
the user fee for processing offers in Assistant Secretary of the Treasury (Tax service or commercial carrier, address
compromise is applicable November 1, Policy). your comments to: Mr. Brian Smith,
2003; the user fee for the special [FR Doc. E6–22257 Filed 12–27–06; 8:45 am] 1990 K Street, NW., room 8082,
enrollment examination, enrollment, BILLING CODE 4830–01–P Washington, DC 20006–8542.
and renewal of enrollment for enrolled If you prefer to send your comments
agents is applicable November 6, 2006; through the Internet, you may address
the user fee for entering into installment DEPARTMENT OF EDUCATION them to us at:
agreements on or after January 1, 2007, DischargeComments@ed.gov. Or you
34 CFR Parts 674, 682 and 685 may send them to us at the U.S.
is applicable January 1, 2007; and the
RIN 1840–AC88 Government Web site: http://
user fee for restructuring or
www.regulations.gov. You must include
reinstatement of an installment
Federal Perkins Loan Program, Federal the term ‘‘Discharge Interim Final
agreement on or after January 1, 2007, Comments’’ in the subject line of your
Family Education Loan Program, and
is applicable January 1, 2007. electronic message.
William D. Ford Federal Direct Loan
■ Par. 3. Section 300.1 is amended by Program FOR FURTHER INFORMATION CONTACT: For
revising paragraph (b) to read as follows: provisions related to the FFEL and
AGENCY: Office of Postsecondary
Education, Department of Education. Federal Perkins Loan Programs: Mr.
§ 300.1 Installment agreement fee.
Brian Smith, U.S. Department of
* * * * * ACTION: Interim final regulations,
Education, 1990 K Street, NW., 8th
request for comments. Floor, Washington, DC 20006.
(b) Fee. The fee for entering into an
installment agreement before January 1, SUMMARY: The Secretary is amending the Telephone: (202) 502–7551 or via the
2007, is $43. The fee for entering into Federal Perkins Loan (Perkins Loan) Internet at: Brian.Smith@ed.gov. For
an installment agreement on or after Program, Federal Family Education provisions related to the Federal Direct
January 1, 2007, is $105, except that: Loan (FFEL) Program, and William D. Loan Program: Mr. Jon Utz, U.S.
Ford Federal Direct Loan (Direct Loan) Department of Education, Union Center
(1) The fee is $52 when the taxpayer Plaza, 830 First Street, NE., Washington,
pays by way of a direct debit from the Program regulations to implement the
changes to the Higher Education Act of DC 20202–5345. Telephone: (202) 377–
taxpayer’s bank account; and 4008 or via the Internet at:
1965, as amended (HEA), resulting from
(2) Notwithstanding the method of the enactment of the Third Higher Jon.Utz@ed.gov.
payment, the fee is $43 if the taxpayer Education Extension Act of 2006 If you use a telecommunications
is a low-income taxpayer, that is, an (THEEA), Public Law 109–292. These device for the deaf (TDD), you may call
individual who falls at or below 250% interim final regulations reflect the the Federal Relay Service (FRS) at 1–
of the dollar criteria established by the provisions of the THEEA that authorize 800–877–8339.
poverty guidelines updated annually in the discharge of the outstanding balance Individuals with disabilities may
the Federal Register by the U.S. of certain Perkins, FFEL, and Direct obtain this document in an alternative
Department of Health and Human Loan Program loans for survivors of format (e.g., Braille, large print,
Services under authority of section eligible public servants and other audiotape, or computer diskette) on
673(2) of the Omnibus Budget eligible victims of the September 11, request to the contact person listed
2001, terrorist attacks. under FOR FURTHER INFORMATION
Reconciliation Act of 1981 (95 Stat. 357,
CONTACT.
511), or such other measure that is DATES: Effective Date: These interim
adopted by the Secretary. final regulations are effective January SUPPLEMENTARY INFORMATION: On
29, 2007. September 30, 2006, Congress enacted
* * * * *
Comment date: The Department must the THEEA, Public Law 109–292. The
■ Par. 4. Section 300.2 is amended by receive any comments on or before changes made by the THEEA include:
revising paragraph (b) to read as follows: January 29, 2007. • Restrictions on the use of eligible
Information collection compliance lender trustees by higher education
§ 300.2 Restructuring or reinstatement of date: Affected parties do not have to institutions that make FFEL Loans.
installment agreement fee.
comply with the information collection Under the THEEA, as of January 1, 2007,
* * * * * requirements in §§ 674.64, 682.407, and the FFEL lending activities of
(b) Fee. The fee for restructuring or 685.218 until the Department publishes institutions of higher education and
reinstating an installment agreement in the Federal Register the control organizations affiliated with institutions
before January 1, 2007, is $24. The fee numbers assigned by the Office of of higher education through eligible
for restructuring or reinstating an Management and Budget (OMB) to these lender trustee arrangements will be
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information collection requirements. subject to certain restrictions that apply


Publication of the control numbers to institutions of higher education
notifies the public that OMB has acting as lenders directly in the FFEL
approved these information collection Program;
requirements under the Paperwork • New discharge provisions for Title
Reduction Act of 1995. IV, HEA student loans for the survivors

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78076 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

of eligible public servants and certain Forces who died or became permanently As required by the THEEA, the
other eligible victims of the terrorist and totally disabled due to injuries interim final regulations establish
attacks on the United States on suffered in terrorist attacks on procedures for filing applications for
September 11, 2001; September 11, 2001. The term eligible discharges by eligible borrowers. The
• A technical modification to the victim is defined as an individual who interim final regulations provide that a
HEA provision governing account died or became permanently and totally borrower’s eligibility for a loan
maintenance fees that are paid to disabled due to injuries suffered in the discharge will be determined by the
guaranty agencies in the FFEL Program; terrorist attacks on September 11, 2001. holder of the loan: The lender or
and The interim final regulations specify, guarantor for an FFEL Loan; the
• Modifications to the requirements consistent with section 6(b) of the institution that made the loan for a
for an institution to receive a grant THEEA, that the survivor of an eligible Perkins Loan; and the Secretary for a
under the Hispanic Serving Institutions public servant can qualify for loan Direct Loan. The borrower must use an
Program authorized by Title V of the discharge, including the discharge of application approved by the Secretary
HEA. any portion of a joint Consolidation and provide the documentation required
These interim final regulations Loan that was used to repay the by the interim final regulations.
implement only the statutory changes in spouse’s Title IV, student loan, only if The regulations require three types of
section 6 of the THEEA that establish the survivor is the spouse of the eligible documentation to support a claim that
new discharges in the Title IV, HEA public servant. an individual is an eligible public
student loan programs for the survivors The interim final regulations, servant or an eligible victim:
of victims of the terrorist attacks on consistent with section 6(b)(1)(B), (C), • Documentation of the individual’s
September 11, 2001. and (D) of the THEEA, also authorize presence at one of the sites of the
loan discharge for spouses and eligible terrorist attacks on September 11, 2001;
Significant Regulations parents of eligible victims (other than • In the case of an eligible public
Discharge of Student Loan Indebtedness public servants). An eligible parent is servant, documentation of the
for Survivors of Victims of the defined as the parent of an eligible individual’s status as a public servant at
September 11, 2001, Attacks (§§ 674.64, victim if the parent owes a parent PLUS the time of the attacks; and
682.407, and 685.218) Loan incurred on behalf of that eligible • Documentation that the individual’s
victim, or owes a Consolidation Loan death or permanent and total disability
Statute: Section 6 of the THEEA that repaid a parent PLUS Loan incurred was a direct result of the attacks.
amended the HEA by authorizing the on behalf of that eligible victim. Documentation of an individual’s
discharge of the obligation of a borrower For spouses of eligible victims other status as a public servant is provided by
to make further payments on an eligible than eligible public servants, the interim a certification from an authorized
Perkins, FFEL or Direct Loan if the final regulations provide, consistent official that the borrower was a member
borrower is a survivor of an eligible with section 6(b)(1)(B) of the THEEA, of the Armed Forces, or was employed
public servant or other eligible victim of for the discharge of the portion of a joint as a police officer, firefighter, or other
the September 11, 2001, terrorist Consolidation Loan that was incurred safety or rescue personnel at one of the
attacks. The discharge is authorized on behalf of the eligible victim. To sites of the terrorist attacks on
only for a Perkins, FFEL or Direct Loan qualify for a discharge, in the case of a September 11. This certification is also
on which amounts were owed on discharge based on the permanent and used to document that the individual
September 11, 2001, or Consolidation total disability of the eligible public was present at one of the sites. For an
Loans incurred to pay off loan amounts servant or the eligible victim, the eligible victim, a certification that the
that were owed on September 11, 2001. borrower and the public servant or individual was present at one of the
Amounts must still be owed on the loan victim must still be married. In the case sites must be provided.
on the day the discharge is requested. of a discharge based on the death of the Under the interim final regulations,
The THEEA does not authorize a refund eligible public servant or eligible victim, documentation of the permanent and
of payments made by a borrower prior the borrower must have been married to total disability of an eligible victim or
to the date the loan is discharged. the public servant or the victim until the an eligible public servant must include
Current Regulations: The current death of the public servant or the copies of contemporaneous medical
Perkins, FFEL, and Direct Loan Program victim. For purposes of Federal law, the records demonstrating that the victim
regulations do not reflect the new loan term ‘‘spouse’’ is defined in 1 U.S.C. 7 was treated within 24 hours of the
discharge provisions for survivors of and does not include an ex-spouse. borrower sustaining the injury, or 24
eligible public servants and other Thus, the THEEA does not give the hours of the borrower being rescued.
eligible victims of the September 11, Secretary the authority to provide for a The injury must have been sustained at
2001, terrorist attacks. loan discharge for an ex-spouse. the time or in the immediate aftermath
New Regulations: New §§ 674.64, The interim final regulations also of the attacks. In addition, the borrower
682.407, and 685.218 have been added provide for the discharge of a parent must provide a certification from a
to the Perkins, FFEL, and Direct Loan borrower’s PLUS Loan (or the portion of physician that the borrower is
Program regulations, respectively, to a Consolidation Loan that repaid a permanently and totally disabled due to
reflect the THEEA provisions PLUS Loan) in the event of the death of injuries suffered in the terrorist attacks
authorizing a loan discharge for the eligible victim on whose behalf the on September 11, 2001.
survivors of eligible public servants and PLUS Loan was obtained. Finally, the Documentation of the death of an
other eligible victims of the September interim final regulations provide for a eligible victim or an eligible public
11, 2001, terrorist attacks. discharge of a PLUS Loan (or the servant is provided by the inclusion of
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For the purpose of this new loan portion of a Consolidation Loan that the individual on an official list of
discharge, an eligible public servant is repaid a PLUS Loan) obtained on behalf individuals who died in the terrorist
defined in the program regulations as an of an eligible victim who became attacks on September 11, 2001. If the
individual who served as a police permanently and totally disabled due to individual didn’t die in the attacks, but
officer, firefighter, other safety or rescue injuries suffered in the terrorist attacks died later as result of the attacks,
personnel, or as a member of the Armed on September 11, 2001. documentation requirements include an

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Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations 78077

original or certified copy of the regulations promulgated to administer basis, the Department requests public
individual’s death certificate, and a the September 11th Victim comment on these regulations. After full
certification from a physician or Compensation Fund of 2001 (the Fund). consideration of public comments, the
medical examiner that the individual See 24 CFR Part 104; 66 FR 66273 (Dec. Secretary will publish final regulations
died due to injuries suffered in the 21, 2001); 67 FR 11233 (March 13, with any necessary changes.
terrorist attacks on September 11, 2001. 2002). The documentation required to
In some cases, substitutions for the show that an eligible victim or public Executive Order 12866
documentation discussed above may be servant died or became permanently Regulatory Impact Analysis
used. For example, documentation that and totally disabled due to injuries Under Executive Order 12866, the
an individual’s Title IV loans were suffered in the terrorist attacks on
Secretary must determine whether this
discharged due to death may be used in September 11, 2001 closely parallels the
regulatory action is ‘‘significant’’ and
lieu of an original or certified copy of documentation required under the Fund
a death certificate. therefore subject to the requirements of
regulations. The Fund was created
The documentation required by the the Executive Order and subject to
under Title IV of the Air Transportation
interim final regulations is necessary to review by the OMB. Section 3(f) of
Safety and System Stabilization Act,
limit the discharge to individuals who Executive Order 12866 defines a
Public Law 107–42, which authorized
meet the statutory eligibility criteria for ‘‘significant regulatory action’’ as an
compensation to any individual (or the
the discharge. Contemporaneous action likely to result in a rule that may
personal representative of a deceased
medical records are necessary to ensure (1) have an annual effect on the
individual) who was physically injured
that the individual was injured in the or killed as a result of the September 11, economy of $100 million or more, or
terrorist attacks on September 11, 2001. 2001 terrorist-related aircraft crashes. adversely affect a sector of the economy,
A certification from a physician that the We determined that the Fund’s productivity, competition, jobs, the
borrower is permanently and totally regulations provided an appropriate environment, public health or safety, or
disabled as a result of that injury is basis for several of the new regulatory State, local or tribal governments or
necessary to ensure that the disability is provisions resulting from the THEEA. communities in a material way (also
a result of the terrorist attacks. referred to as an ‘‘economically
Although the documentation Waiver of Proposed Rulemaking significant’’ rule); (2) create serious
requirements for the September 11 Under the Administrative Procedure inconsistency or otherwise interfere
survivor’s discharge require eligibility of Act (5 U.S.C. 553), the Department is with an action taken or planned by
the public servant or the victim, the generally required to publish a notice of another agency; (3) materially alter the
September 11 survivor’s discharge proposed rulemaking and provide the budgetary impacts of entitlement grants,
under the THEEA is available only to public with an opportunity to comment user fees, or loan programs or the rights
the spouse or parent of the eligible on proposed regulations prior to issuing and obligations of recipients thereof; or
public servant or the eligible victim. An a final rule. In addition, under section (4) raise novel legal or policy issues
eligible public servant or an eligible 492 of the HEA, all Department arising out of legal mandates, the
victim is not eligible for a loan regulations for programs authorized President’s priorities, or the principles
discharge under these interim final under title IV of the HEA are subject to set forth in the Executive Order.
regulations. A determination by a loan negotiated rulemaking requirements and Pursuant to the terms of the Executive
holder that an eligible public servant or under section 482 of the HEA, any title Order, it has been determined this
an eligible victim is permanently and IV regulations that have not been regulatory action will not have an
totally disabled for the purpose of published in final form by November 1 annual effect on the economy of more
discharging a spouse’s or parent’s loans prior to the start of an award year than $100 million. We believe that
does not qualify the eligible public cannot become effective until the approximately 1,000 borrowers are
servant or the eligible victim for a total beginning of the second award year eligible for a discharge on their loan
and permanent disability discharge on following the November 1 date. under these provisions and that the
his or her loans. To obtain a total and Section 6(f) of the THEEA provides costs incurred by the Department,
permanent disability discharge, an that sections 482(c) and 492 of the HEA lenders, and GAs to make the necessary
eligible public servant or an eligible shall not apply to any regulations systems changes to implement the
victim must apply for a total and required to implement provisions of the discharge will approximate $1,350,000.
permanent disability discharge under THEEA that authorize the discharge of Therefore, this action is not
the current procedures in §§ 674.61, a title IV, HEA loan for survivors of ‘‘economically significant’’ and is not
682.402, 685.212, and 685.213. victims of the September 11, 2001, subject to OMB review under section
Under those regulations, a borrower attacks. The THEEA also requires that 3(f)(1) of Executive Order 12866.
who qualifies for a discharge based on procedures for filing an application for However, this action is subject to OMB
a total and permanent disability may be loan discharge for survivors of the review under section 3(f)(4) of the
entitled to receive a refund of payments September 11, 2001, terrorist attacks be Executive Order.
made after the date of disability. prescribed and published by regulation
Consistent with section 6(e) of the 90 days after the date of enactment or Need for Federal Regulatory Action
THEEA, a discharge under the interim December 29, 2006, without regard to These interim final regulations are
final regulations provides a discharge the rulemaking requirements of the needed to implement the provisions of
only of the outstanding balance of the APA. Therefore, the requirements for a the THEEA, which affects borrowers
loan and no refunds are authorized. proposed rule and negotiated and other program participants in the
In developing these interim final rulemaking do not apply to these Federal Perkins, FFEL and Federal
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regulations, we relied on the definitions regulations. Direct Loan Programs authorized under
of immediate aftermath and present at These regulations are final and in Title IV of the HEA.
the World Trade Center in New York effect as published, thirty days after The Secretary has limited discretion
City, New York, at the Pentagon in publication in the Federal Register. in implementing these provisions. The
Virginia, or at the Shanksville, Although the Department is adopting changes included in these interim final
Pennsylvania site contained in the these regulations on an interim final regulations implement loan discharges

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78078 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

for the outstanding balance of certain Sections 674.64, 682.407 and 685.218— Assessment of Educational Impact
Perkins, FFEL, and Direct Loan Program Discharge of a Federal Perkins, FFEL or Based on our own review, we have
loans for survivors of eligible public Federal Direct Loan for Survivors of determined that these interim final
servants and other eligible victims of the Eligible Public Servants and Other regulations do not require transmission
September 11, 2001 terrorist attacks. Eligible Victims of the September 11, of information that any other agency or
2001 Terrorist Attacks authority of the United States gathers or
Regulatory Flexibility Act Certification
Under these interim final regulations, makes available.
The Secretary certifies that these the Title IV, HEA loan program Electronic Access to This Document
interim final regulations will not have a regulations are amended to authorize
the discharge of the outstanding balance You may view this document, as well
significant economic impact on a
of certain Federal Perkins, FFEL, or as all other Department of Education
substantial number of small entities.
Direct Loan Program loans for survivors documents published in the Federal
Paperwork Reduction Act of 1995 of eligible public servants and other Register, in text or Adobe Portable
eligible victims of the September 11, Document Format (PDF) on the Internet
Sections 674.64, 682.407 and 685.218 at the following site: http://www.ed.gov/
contain information collection 2001, terrorist attacks. The burden
associated with the new requirements news/fedregister
requirements. As required by the To use PDF you must have Adobe
will be accounted for under a new OMB
Paperwork Reduction Act of 1995 (44 Acrobat Reader, which is available free
Control Number for a FFEL, Direct Loan,
U.S.C. 3507(d)), the Department of at this site. If you have questions about
and Perkins Loan Discharge Application
Education is required to submit a copy using PDF, call the U.S. Government
for September 11, 2001 Survivors. This
of these sections to the OMB for its Printing Office (GPO), toll free, at 1–
form has been submitted for OMB
review. The burden associated with the 888–293–6498; or in the Washington,
review and approval by emergency
above provisions is associated with DC, area at (202) 512–1530.
clearance.
forms and applications currently under If you want to comment on the Note: The official version of this document
development and will be approved for is the document published in the Federal
information collection requirements, Register. Free Internet access to the official
use under new OMB control numbers. please send your comments to the Office edition of the Federal Register and the Code
The Department will develop new of Information and Regulatory Affairs, of Federal Regulations is available on GPO
information collection packages for the OMB, room 10235, New Executive Access at: http://www.gpoaccess.gov/nara/
following sections: §§ 674.64, 682.407, Office Building, Washington, DC 20503; index.html
and 685.218. Attention: Desk Officer for U.S. (Catalog of Federal Domestic Assistance
The Department will develop the Department of Education. You may also Numbers: 84.032 Federal Family Education
application necessary to implement send a copy of these comments to the Loan Program; 84.038 Federal Perkins Loan
Department representative named in the Program; 84.268 William D. Ford Federal
these provisions under an emergency
FOR FURTHER INFORMATION CONTACT Direct Loan Program.)
clearance authorized by OMB.
Information required by §§ 674.64(c), section of this preamble. List of Subjects in 34 CFR Parts 674,
674.64(d), 682.407(d), 682.407(e), We consider your comments on these 682, and 685
685.218(d), and 685.218(e) to determine proposed collections of information in— Administrative practice and
eligibility for the discharge will be • Deciding whether the proposed procedure, Colleges and universities,
collected on this OMB-approved collections are necessary for the proper Education, Loans program-education,
application. The information provided performance of our functions, including Reporting and recordkeeping
on the OMB-approved application will whether the information will have requirements, Student aid, Vocational
be collected and maintained by the practical use; education.
holder of the borrower’s loan. In the • Evaluating the accuracy of our
Dated: December 22, 2006.
case of a FFEL loan, if the loan holder estimate of the burden of the proposed
collections, including the validity of our Margaret Spellings,
approves the discharge request the loan Secretary of Education.
methodology and assumptions;
holder will provide the information ■ For the reasons discussed in the
collected to the guaranty agency that • Enhancing the quality, usefulness,
and clarity of the information we preamble, the Secretary amends parts
guaranteed the loan. 674, 682 and 685 of title 34 of the Code
collect; and
The Department has submitted a full • Minimizing the burden on those of Federal Regulations as follows:
information collection package for OMB who must respond. This includes
review to account for the burden PART 674—FEDERAL PERKINS LOAN
exploring the use of appropriate
associated with §§ 674.64, 682.407, and PROGRAM
automated, electronic, mechanical, or
685.218 concurrently with the other technological collection ■ 1. The authority citation for part 674
publication of these interim final techniques or other forms of information continues to read as follows:
regulations. Accordingly, we invite technology; e.g., permitting electronic Authority: 20 U.S.C. 1087aa-1087hh and
comments on the burden hours submission of responses. 20 U.S.C. 421–429, unless otherwise noted.
associated with the information OMB is required to make a decision
■ 2. New § 674.64 is added to read as
collection package for §§ 674.64, concerning the collection of information
682.402, and 685.218 at this time. contained in these interim final follows:
Collection of Information: Federal regulations between 30 and 60 days § 674.64 Discharge of student loan
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Perkins Loan Program; Federal Family after publication of this document in the indebtedness for survivors of victims of the
Education Loan Program; and William Federal Register. Therefore, to ensure September 11, 2001, attacks.
D. Ford Federal Direct Loan Program. that OMB gives your comments full (a) Definition of terms. As used in this
consideration, it is important that OMB section—
receives the comments within 30 days (1) Eligible public servant means an
of publication. individual who—

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Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations 78079

(i) Served as a police officer, (4) Immediate aftermath means, for an discharge has been denied, provide the
firefighter, other safety or rescue eligible public servant, the period of basis for the denial, and inform the
personnel, or as a member of the Armed time from the aircraft crashes until 96 borrower that the lender will resume
Forces; and hours after the crashes. collection on the loan.
(ii)(A) Died due to injuries suffered in (5) Present at the World Trade Center (5) If the institution determines that
the terrorist attacks on September 11, in New York City, New York, at the the borrower qualifies for a discharge
2001; or Pentagon in Virginia, or at the under this section, the institution shall
(B) Became permanently and totally Shanksville, Pennsylvania site means notify the borrower that the loan has
disabled due to injuries suffered in the physically present at the time of the been discharged and that there is no
terrorist attacks on September 11, 2001. terrorist-related aircraft crashes or in the further obligation to repay the loan. The
(2) Died due to injuries suffered in the immediate aftermath— institution shall return to the sender any
terrorist attacks on September 11, 2001 (i) In the buildings or portions of the payments received by the institution
means the individual— buildings that were destroyed as a result after the date the loan was discharged.
(i) Was present at the World Trade of the terrorist-related aircraft crashes; (6) A Defense, NDSL, or Perkins Loan
Center in New York City, New York, at or owed by an eligible public servant may
the Pentagon in Virginia, or at the (ii) In any area contiguous to the crash be discharged under the procedures in
site that was sufficiently close to the site § 674.61 for a discharge based on the
Shanksville, Pennsylvania site at the
that there was a demonstrable risk of death or total and permanent disability
time of or in the immediate aftermath of
physical harm resulting from the impact of the eligible public servant.
the terrorist-related aircraft crashes on
of the aircraft or any subsequent fire, (c) Documentation that an eligible
September 11, 2001, and the individual
explosions, or building collapses. public servant died due to injuries
died as a direct result of these crashes;
Generally, this includes the immediate suffered in the terrorist attacks on
or
area in which the impact occurred, fire September 11, 2001. (1) Documentation
(ii) Died on board American Airlines
occurred, portions of buildings fell, or that an eligible public servant died due
flights 11 or 77 or United Airlines debris fell upon and injured persons.
flights 93 or 175 on September 11, 2001. to injuries suffered in the terrorist
(b) September 11 survivors discharge. attacks on September 11, 2001 must
(3) Became permanently and totally (1) The obligation of a borrower to make
disabled due to injuries suffered in the include—
any further payments on an eligible (i) A certification from an authorized
terrorist attacks on September 11, 2001 Defense, NDSL, or Perkins Loan is
means the individual was present at the official that the individual was a
discharged if the borrower was, at the member of the Armed Forces, or was
World Trade Center in New York City, time of the terrorist attacks on
New York, at the Pentagon in Virginia, employed as a police officer, firefighter,
September 11, 2001, and currently is, or other safety or rescue personnel, and
or at the Shanksville, Pennsylvania site the spouse of an eligible public servant,
at the time of or in the immediate was present at the World Trade Center
unless the eligible public servant has in New York City, New York, at the
aftermath of the terrorist-related aircraft died. If the eligible public servant has
crashes on September 11, 2001, and the Pentagon in Virginia, or at the
died, the borrower must have been the Shanksville, Pennsylvania site at the
individual became permanently and spouse of the eligible public servant at
totally disabled as a direct result of time of the terrorist-related aircraft
the time of the terrorist attacks on crashes or in the immediate aftermath of
these crashes. September 11, 2001 and until the date these crashes; and
(i) An individual is considered the eligible public servant died. (ii) The inclusion of the individual on
permanently and totally disabled if— (2) A Defense, NDSL, or Perkins Loan an official list of the individuals who
(A) The disability is the result of a owed by the spouse of an eligible public died in the terrorist attacks on
physical injury to the individual that servant may be discharged under the September 11, 2001.
was treated by a medical professional procedures for a discharge in paragraphs (2) If the individual is not included on
within 24 hours of the injury having (b)(3) through (b)(6) of this section. an official list of the individuals who
been sustained or within 24 hours of the (3) After being notified by the died in the terrorist attacks on
rescue; borrower that the borrower claims to September 11, 2001, the borrower must
(B) The physical injury that caused qualify for a discharge under this provide—
the disability is verified by section, an institution shall suspend (i) The certification described in
contemporaneous medical records collection activity on the borrower’s paragraph (c)(1)(i) of this section;
created by or at the direction of the eligible Defense, NDSL, and Perkins (ii) An original or certified copy of the
medical professional who provided the Loans and promptly request that the individual’s death certificate; and
medical care; and borrower submit a request for discharge (iii) A certification from a physician
(C) The individual is unable to work on a form approved by the Secretary. or a medical examiner that the
and earn money due to the disability (4) If the institution determines that individual died due to injuries suffered
and the disability is expected to the borrower does not qualify for a in the terrorist attacks on September 11,
continue indefinitely or result in death. discharge under this section, or the 2001.
(ii) If the injuries suffered due to the institution does not receive the (3) If the individual owed a FFEL
terrorist-related aircraft crashes did not completed discharge request form from Program Loan, a Direct Loan, or a
make the individual permanently and the borrower within 60 days of the Perkins Loan at the time of the terrorist
totally disabled at the time of or in the borrower notifying the institution that attacks on September 11, 2001,
immediate aftermath of the attacks, the the borrower claims to qualify for a documentation that the individual’s
individual may be considered to be discharge, the institution shall resume loans were discharged by the lender, the
cprice-sewell on PROD1PC66 with RULES

permanently and totally disabled for collection and shall be deemed to have Secretary, or the institution due to death
purposes of this section if the exercised forbearance of payment of may be substituted for the original or
individual’s medical condition has both principal and interest from the date certified copy of a death certificate.
deteriorated to the extent that the the institution was notified by the (4) If the borrower is the spouse of an
individual is permanently and totally borrower. The institution must notify eligible public servant, and has been
disabled. the borrower that the application for the granted a discharge on a FFEL Program

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78080 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

Loan, a Direct Loan, or a Perkins Loan determine the borrower’s eligibility for terrorist-related aircraft crashes on
held by another institution, because the a discharge under this section. September 11, 2001.
eligible public servant died due to (2) To establish that the eligible
injuries suffered in the terrorist attacks public servant was present at the World PART 682—FEDERAL FAMILY
on September 11, 2001, documentation Trade Center in New York City, New EDUCATION LOAN (FFEL) PROGRAM
of the discharge may be used as an York, at the Pentagon in Virginia, or at
alternative to the documentation the Shanksville, Pennsylvania site, such ■ 3. The authority citation for part 682
required in paragraphs (c)(1) through additional information may include but continues to read as follows:
(c)(3) of this section. is not limited to— Authority: 20 U.S.C. 1071 to 1087–2,
(5) Under exceptional circumstances (i) Records of employment; unless otherwise noted.
and on a case-by-case basis, the (ii) Contemporaneous records of a ■ 4. New § 682.407 is added to read as
determination that an eligible public federal, state, city, or local government follows:
servant died due to injuries suffered in agency;
the terrorist attacks on September 11, (iii) An affidavit or declaration of the § 682.407 Discharge of student loan
2001 may be based on other reliable eligible public servant’s employer; or indebtedness for survivors of victims of the
documentation approved by the chief (iv) A sworn statement (or an September 11, 2001, attacks.
financial officer of the institution. unsworn statement complying with 28 (a) Definition of terms. As used in this
(d) Documentation that an eligible U.S.C. 1746) regarding the presence of section—
public servant became permanently and the eligible public servant at the site. (1) Eligible public servant means an
totally disabled due to injuries suffered (3) To establish that the disability of individual who—
in the terrorist attacks on September 11, the eligible public servant is due to (i) Served as a police officer,
2001. injuries suffered in the terrorist attacks firefighter, other safety or rescue
(1) Documentation that an eligible on September 11, 2001, such additional personnel, or as a member of the Armed
public servant became permanently and information may include but is not Forces; and
totally disabled due to injuries suffered limited to— (ii)(A) Died due to injuries suffered in
in the terrorist attacks on September 11, (i) Contemporaneous medical records the terrorist attacks on September 11,
2001 must include— of hospitals, clinics, physicians, or other 2001; or
(i) A certification from an authorized licensed medical personnel; (B) Became permanently and totally
official that the individual was a (ii) Registries maintained by federal, disabled due to injuries suffered in the
member of the Armed Forces or was state, or local governments; or terrorist attacks on September 11, 2001.
employed as a police officer, firefighter (iii) Records of all continuing medical (2) Eligible victim means an
or other safety or rescue personnel, and treatment. individual who died due to injuries
was present at the World Trade Center (4) To establish the borrower’s suffered in the terrorist attacks on
in New York City, New York, at the relationship to the eligible public September 11, 2001 or became
Pentagon in Virginia, or at the servant, such additional information permanently and totally disabled due to
Shanksville, Pennsylvania site at the may include but is not limited to— injuries suffered in the terrorist attacks
time of the terrorist-related aircraft (i) Copies of relevant legal records on September 11, 2001.
crashes or in the immediate aftermath of including court orders, letters of (3) Eligible parent means the parent of
these crashes; testamentary or similar documentation; an eligible victim if—
(ii) Copies of contemporaneous (ii) Copies of wills, trusts, or other (i) The parent owes a FFEL PLUS
medical records created by or at the testamentary documents; or Loan incurred on behalf of an eligible
direction of a medical professional who (iii) Copies of approved joint FFEL or victim; or
provided medical care to the individual Federal Direct Consolidation loan (ii) The parent owes a FFEL
within 24 hours of the injury having applications. Consolidation Loan that was used to
been sustained or within 24 hours of the (f) Limitations on discharge. (1) Only repay a FFEL or Direct Loan PLUS Loan
rescue; and Defense, NDSL, and Perkins Loans for incurred on behalf of an eligible victim.
(iii) A certification by a physician, which amounts were owed on (4) Died due to injuries suffered in the
who is a doctor of medicine or September 11, 2001, are eligible for terrorist attacks on September 11, 2001
osteopathy and legally authorized to discharge under this section. means the individual—
practice in a state, that the individual (2) Eligibility for a discharge under (i) Was present at the World Trade
became permanently and totally this section does not qualify a borrower Center in New York City, New York, at
disabled due to injuries suffered in the for a refund of any payments made on the Pentagon in Virginia, or at the
terrorist attacks on September 11, 2001. the borrower’s Defense, NDSL, or Shanksville, Pennsylvania site at the
(2) If the borrower is the spouse of an Perkins Loans prior to the date the loan time of or in the immediate aftermath of
eligible public servant, and has been was discharged. the terrorist-related aircraft crashes on
granted a discharge on a FFEL Loan, a (3) A determination by an institution September 11, 2001, and the individual
Direct Loan, or a Perkins Loan held by that an eligible public servant became died as a direct result of these crashes;
another institution, because the eligible permanently and totally disabled due to or
public servant became permanently and injuries suffered in the terrorist attacks (ii) Died on board American Airlines
totally disabled due to injuries suffered on September 11, 2001 for purposes of flights 11 or 77 or United Airlines
in the terrorist attacks on September 11, this section does not qualify the eligible flights 93 or 175 on September 11, 2001.
2001, documentation of the discharge public servant for a discharge based on (5) Became permanently and totally
may be used as an alternative to the a total and permanent disability under disabled due to injuries suffered in the
cprice-sewell on PROD1PC66 with RULES

documentation required in paragraph § 674.61. terrorist attacks on September 11, 2001


(d)(1) of this section. (4) The spouse of an eligible public means the individual was present at the
(e) Additional information. (1) An servant may not receive a discharge World Trade Center in New York City,
institution may require the borrower to under this section if the eligible public New York, at the Pentagon in Virginia,
submit additional information that the servant has been identified as a or at the Shanksville, Pennsylvania site
institution deems necessary to participant or conspirator in the at the time of or in the immediate

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Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations 78081

aftermath of the terrorist-related aircraft discharged if the borrower was, at the has been denied, provide the basis for
crashes on September 11, 2001 and the time of the terrorist attacks on the denial, and inform the borrower that
individual became permanently and September 11, 2001, and currently is, the lender will resume collection on the
totally disabled as a direct result of the spouse of an eligible public servant, loan. The lender may capitalize, in
these crashes. unless the eligible public servant has accordance with § 682.202(b), any
(i) An individual is considered died. If the eligible public servant has interest accrued and not paid during
permanently and totally disabled if— died, the borrower must have been the this period.
(A) The disability is the result of a spouse of the eligible public servant at (4) If the lender determines that the
physical injury to the individual that the time of the terrorist attacks on borrower qualifies for a discharge under
was treated by a medical professional September 11, 2001 and until the date this section, the lender shall provide the
within 24 hours of the injury having the eligible public servant died. guaranty agency with the following
been sustained or within 24 hours of the (2) The obligation of a borrower to documentation—
rescue; make any further payments towards the (i) The original promissory note or a
(B) The physical injury that caused portion of a joint FFEL Consolidation copy of the promissory note certified by
the disability is verified by Loan incurred on behalf of an eligible the lender as true and exact;
contemporaneous medical records victim is discharged if the borrower (ii) The loan application, if a separate
created by or at the direction of the was, at the time of the terrorist attacks loan application was provided to the
medical professional who provided the on September 11, 2001, and currently is, lender; and
medical care; and the spouse of an eligible victim, unless (iii) The completed discharge form,
(C) The individual is unable to work the eligible victim has died. If the and all accompanying documentation
and earn money due to the disability eligible victim has died, the borrower supporting the discharge request that
and the disability is expected to must have been the spouse of the formed the basis for the determination
continue indefinitely or result in death. eligible victim at the time of the terrorist that the borrower qualifies for a
(ii) If the injuries suffered due to the attacks on September 11, 2001 and until discharge.
terrorist-related aircraft crashes did not the date the eligible victim died. (5) The lender must file a discharge
make the individual permanently and (3) If the borrower is an eligible claim within 60 days of the date on
totally disabled at the time of or in the parent— which the lender determines that the
immediate aftermath of the attacks, the (i) The obligation of a borrower and borrower qualifies for a discharge.
individual may be considered to be any endorser to make any further (6) The guaranty agency must review
permanently and totally disabled for payments on a FFEL PLUS Loan a discharge claim under this section
purposes of this section if the incurred on behalf of an eligible victim promptly.
individual’s medical condition has is discharged. (7) If the guaranty agency determines
deteriorated to the extent that the (ii) The obligation of the borrower to that the borrower does not qualify for a
individual is permanently and totally make any further payments towards the discharge under this section, the
disabled. portion of a FFEL Consolidation Loan guaranty agency must return the claim
(6) Immediate aftermath means, that repaid a FFEL or Direct Loan PLUS to the lender with an explanation of the
except in the case of an eligible public Loan incurred on behalf of an eligible basis for the agency’s denial of the
servant, the period of time from the victim is discharged. claim. Upon receipt of the returned
aircraft crashes until 12 hours after the (c) Applying for discharge. (1) A FFEL claim, the lender must notify the
crashes. With respect to eligible public Program Loan owed by the spouse of an borrower that the application for the
servants, the immediate aftermath eligible public servant or the spouse or discharge has been denied, provide the
includes the period of time from the parent of an eligible victim may be basis for the denial, and inform the
aircraft crashes until 96 hours after the discharged under the procedures for a borrower that the lender will resume
crashes. discharge in paragraphs (c)(2) through collection on the loan. The lender is
(7) Present at the World Trade Center (c)(12) of this section. deemed to have exercised forbearance of
in New York City, New York, at the (2) After being notified by the both principal and interest from the date
Pentagon in Virginia, or at the borrower that the borrower claims to collection activity was suspended until
Shanksville, Pennsylvania site means qualify for a discharge under this the first payment due date. The lender
physically present at the time of the section, the lender shall suspend may capitalize, in accordance with
terrorist-related aircraft crashes or in the collection activity on the borrower’s § 682.202(b), any interest accrued and
immediate aftermath— eligible FFEL Program Loan and not paid during this period.
(i) In the buildings or portions of the promptly request that the borrower (8) If the guaranty agency determines
buildings that were destroyed as a result submit a request for discharge on a form that the borrower qualifies for a
of the terrorist-related aircraft crashes; approved by the Secretary. discharge, the guaranty agency pays the
or (3) If the lender determines that the lender on an approved claim the
(ii) In any area contiguous to the crash borrower does not qualify for a amount of loss required under
site that was sufficiently close to the site discharge under this section, or the paragraph (c)(9) of this section. The
that there was a demonstrable risk of lender does not receive the completed guaranty agency shall pay the claim
physical harm resulting from the impact discharge request form from the within the timeframe established for
of the aircraft or any subsequent fire, borrower within 60 days of the borrower payment of disability claims in
explosions, or building collapses. notifying the lender that the borrower § 682.402(h)(1)(i)(B).
Generally, this includes the immediate claims to qualify for a discharge, the (9) The amount of loss payable on a
area in which the impact occurred, fire lender shall resume collection and shall discharge claim is—
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occurred, portions of buildings fell, or be deemed to have exercised (i) An amount equal to the sum of the
debris fell upon and injured persons. forbearance of payment of both remaining principal balance and interest
(b) September 11 survivors discharge. principal and interest from the date the accrued on the loan, unpaid collection
(1) The obligation of a borrower and any lender was notified by the borrower. costs incurred by the lender and applied
endorser to make any further payments The lender must notify the borrower to the borrower’s account within 30
on an eligible FFEL Program Loan is that the application for the discharge days of the date those costs were

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78082 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

actually incurred, and unpaid interest crashes or in the immediate aftermath of by another FFEL lender because the
up to the date the lender should have these crashes; and eligible victim died due to injuries
filed the claim; or (ii) The inclusion of the individual on suffered in the terrorist attacks on
(ii) In the case of a partial discharge an official list of the individuals who September 11, 2001, documentation of
of a Consolidation Loan, the amount died in the terrorist attacks on the discharge may be used as an
specified in paragraph (c)(9)(i) of this September 11, 2001. alternative to the documentation in
section for the portion of the (2) If the individual is not included on paragraphs (d)(4) and (d)(5) of this
Consolidation Loan incurred on behalf an official list of the individuals who section.
of the eligible victim. died in the terrorist attacks on (8) Under exceptional circumstances
(10) After being notified that the September 11, 2001, the borrower must and on a case-by-case basis, the
guaranty agency has paid a discharge provide— determination that an eligible public
claim, the lender shall notify the (i) The certification described in servant or an eligible victim died due to
borrower that the loan has been paragraph (d)(1)(i) of this section; injuries suffered in the terrorist attacks
discharged or, in the case of a partial (ii) An original or certified copy of the on September 11, 2001 may be based on
discharge of a Consolidation Loan, individual’s death certificate; and other reliable documentation approved
partially discharged. Except in the case (iii) A certification from a physician by the chief executive officer of the
of a partial discharge of a Consolidation or a medical examiner that the guaranty agency.
Loan, the lender shall return to the individual died due to injuries suffered (e) Documentation that an eligible
sender any payments received by the in the terrorist attacks on September 11, public servant or eligible victim became
lender after the date the guaranty agency 2001. permanently and totally disabled due to
paid the discharge claim. (3) If the individual owed a FFEL injuries suffered in the terrorist attacks
(11) The Secretary reimburses the Program Loan, a Direct Loan, or a on September 11, 2001. (1)
guaranty agency for a discharge claim Perkins Loan at the time of the terrorist Documentation that an eligible public
paid to the lender under this section attacks, documentation that the servant became permanently and totally
after the agency pays the lender. Any individual’s loans were discharged by disabled due to injuries suffered in the
failure by the lender to satisfy due the lender, the Secretary, or the terrorist attacks on September 11, 2001
diligence requirements prior to the institution due to death may be must include—
filing of the claim that would have substituted for the original or certified (i) A certification from an authorized
resulted in the loss of reinsurance on copy of a death certificate. official that the individual was a
the loan in the event of default are (4) Documentation that an eligible member of the Armed Forces or was
waived by the Secretary, provided the victim died due to injuries suffered in employed as a police officer, firefighter
loan was held by an eligible loan holder the terrorist attacks on September 11, or other safety or rescue personnel, and
at all times. 2001 is the inclusion of the individual was present at the World Trade Center
(12) Except in the case of a partial on an official list of the individuals who in New York City, New York, at the
discharge of a Consolidation Loan, the died in the terrorist attacks on Pentagon in Virginia, or at the
guaranty agency shall promptly return September 11, 2001. Shanksville, Pennsylvania site at the
to the sender any payment on a (5) If the eligible victim is not time of the terrorist-related aircraft
discharged loan made by the sender and included on an official list of the crashes or in the immediate aftermath of
received after the Secretary pays a individuals who died in the terrorist these crashes;
discharge claim. At the same time that attacks on September 11, 2001, the (ii) Copies of contemporaneous
the agency returns the payment it shall borrower must provide— medical records created by or at the
notify the borrower that the loan has (i) The documentation described in direction of a medical professional who
been discharged and that there is no paragraphs (d)(2)(ii), (d)(2)(iii), and provided medical care to the individual
further obligation to repay the loan. (d)(3) of this section; and within 24 hours of the injury having
(13) A FFEL Program Loan owed by (ii) A certification signed by the been sustained or within 24 hours of the
an eligible public servant or an eligible borrower that the eligible victim was rescue; and
victim may be discharged under the present at the World Trade Center in (iii) A certification by a physician,
procedures in § 682.402 for a discharge New York City, New York, at the who is a doctor of medicine or
based on the death or total and Pentagon in Virginia, or at the osteopathy and legally authorized to
permanent disability of the eligible Shanksville, Pennsylvania site at the practice in a state, that the individual
public servant or eligible victim. time of the terrorist-related aircraft became permanently and totally
(d) Documentation that an eligible crashes or in the immediate aftermath of disabled due to injuries suffered in the
public servant or eligible victim died these crashes. terrorist attacks on September 11, 2001.
due to injuries suffered in the terrorist (6) If the borrower is the spouse of an (2) Documentation that an eligible
attacks on September 11, 2001. (1) eligible public servant, and has been victim became permanently and totally
Documentation that an eligible public granted a discharge on a Perkins Loan, disabled due to injuries suffered in the
servant died due to injuries suffered in a Direct Loan, or a FFEL Program Loan terrorist attacks on September 11, 2001
the terrorist attacks on September 11, held by another FFEL lender because must include—
2001 must include— the eligible public servant died due to (i) The documentation described in
(i) A certification from an authorized injuries suffered in the terrorist attacks paragraphs (e)(1)(ii) and (e)(1)(iii) of this
official that the individual was a on September 11, 2001, documentation section; and
member of the Armed Forces, or was of the discharge may be used as an (ii) A certification that the eligible
employed as a police officer, firefighter, alternative to the documentation in victim was present at the World Trade
cprice-sewell on PROD1PC66 with RULES

or other safety or rescue personnel, and paragraphs (d)(1) through (d)(3) of this Center in New York City, New York, at
was present at the World Trade Center section. the Pentagon in Virginia, or at the
in New York City, New York, at the (7) If the borrower is the spouse or Shanksville, Pennsylvania site at the
Pentagon in Virginia, or at the parent of an eligible victim, and has time of the terrorist-related aircraft
Shanksville, Pennsylvania site at the been granted a discharge on a Direct crashes or in the immediate aftermath of
time of the terrorist-related aircraft Loan or on a FFEL Program Loan held these crashes.

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(3) If the borrower is the spouse of an (i) Copies of relevant legal records (1) On an eligible Direct Loan if the
eligible public servant, and has been including court orders, letters of borrower qualifies as the spouse of an
granted a discharge on a Perkins Loan, testamentary or similar documentation; eligible public servant;
a Direct Loan, or a FFEL Program Loan (ii) Copies of wills, trusts, or other (2) On the portion of a joint Direct
held by another FFEL lender because testamentary documents; or Consolidation Loan incurred on behalf
the eligible public servant became (iii) Copies of approved joint of an eligible victim, if the borrower
permanently and totally disabled due to Consolidation Loan applications or qualifies as the spouse of an eligible
injuries suffered in the terrorist attacks approved FFEL or Direct Loan PLUS victim;
on September 11, 2001, documentation loan applications. (3) On a Direct PLUS Loan incurred
of the discharge may be used as an (g) Limitations on discharge. (1) Only on behalf of an eligible victim if the
alternative to the documentation in Federal SLS Loans, Federal Stafford borrower qualifies as an eligible parent;
paragraph (e)(1) of this section. Loans, Federal PLUS Loans, and Federal and
(4) If the borrower is the spouse or Consolidation Loans for which amounts (4) On the portion of a Direct
parent of an eligible victim, and has were owed on September 11, 2001, or Consolidation Loan that repaid a PLUS
been granted a discharge on a Direct Federal Consolidation Loans incurred to loan incurred on behalf of an eligible
Loan or on a FFEL Program Loan held pay off loan amounts that were owed on victim, if the borrower qualifies as an
by another FFEL lender because the September 11, 2001, are eligible for eligible parent.
eligible victim became permanently and discharge under this section.
(2) Eligibility for a discharge under ■ 7. New § 685.218 is added to read as
totally disabled due to injuries suffered follows:
in the terrorist attacks on September 11, this section does not qualify a borrower
2001, documentation of the discharge for a refund of any payments made on § 685.218 Discharge of student loan
may be used as an alternative to the the borrower’s loan prior to the date the indebtedness for survivors of victims of the
documentation in paragraph (e)(2) of loan was discharged. September 11, 2001, attacks.
(3) A determination by a lender or a (a) Definition of terms. As used in this
this section.
(f) Additional information. (1) A guaranty agency that an eligible public section—
lender or guaranty agency may require servant or an eligible victim became (1) Eligible public servant means an
the borrower to submit additional permanently and totally disabled due to individual who—
information that the lender or guaranty injuries suffered in the terrorist attacks (i) Served as a police officer,
agency deems necessary to determine on September 11, 2001 for purposes of firefighter, other safety or rescue
the borrower’s eligibility for a discharge this section does not qualify the eligible personnel, or as a member of the Armed
under this section. public servant or the eligible victim for Forces; and
(2) To establish that the eligible a discharge based on a total and (ii)(A) Died due to injuries suffered in
public servant or eligible victim was permanent disability under § 682.402. the terrorist attacks on September 11,
(4) The spouse of an eligible public 2001; or
present at the World Trade Center in
servant or eligible victim may not (B) Became permanently and totally
New York City, New York, at the
receive a discharge under this section if disabled due to injuries suffered in the
Pentagon in Virginia, or at the
the eligible public servant or eligible terrorist attacks on September 11, 2001.
Shanksville, Pennsylvania site, such
victim has been identified as a (2) Eligible victim means an
additional information may include but
participant or conspirator in the individual who died due to injuries
is not limited to—
(i) Records of employment; terrorist-related aircraft crashes on suffered in the terrorist attacks on
(ii) Contemporaneous records of a September 11, 2001. An eligible parent September 11, 2001 or became
federal, state, city, or local government may not receive a discharge on a FFEL permanently and totally disabled due to
agency; PLUS Loan or on a Consolidation Loan injuries suffered in the terrorist attacks
(iii) An affidavit or declaration of the that was used to repay a FFEL or Direct on September 11, 2001.
eligible public servant’s or eligible Loan PLUS Loan incurred on behalf of (3) Eligible parent means the parent of
victim’s employer; and an individual who has been identified an eligible victim if—
(iv) A sworn statement (or an as a participant or conspirator in the (i) The parent owes a Direct PLUS
unsworn statement complying with 28 terrorist-related aircraft crashes on Loan incurred on behalf of an eligible
U.S.C. 1746) regarding the presence of September 11, 2001. victim; or
the eligible public servant or eligible (ii) The parent owes a Direct
victim at the site. PART 685—WILLIAM D. FORD Consolidation Loan that was used to
(3) To establish that the disability of FEDERAL DIRECT LOAN PROGRAM repay a Direct PLUS Loan or a FFEL
the eligible public servant or eligible PLUS Loan incurred on behalf of an
■ 5. The authority citation for part 685
victim is due to injuries suffered in the eligible victim.
continues to read as follows:
terrorist attacks on September 11, 2001, (4) Died due to injuries suffered in the
such additional information may Authority: 20 U.S.C. 1087a et seq., unless terrorist attacks on September 11, 2001
otherwise noted. means the individual—
include but is not limited to—
(i) Contemporaneous medical records ■ 6. Section 685.212 is amended by (i) Was present at the World Trade
of hospitals, clinics, physicians, or other adding a new paragraph (i) to read as Center in New York City, New York, at
licensed medical personnel; follows: the Pentagon in Virginia, or at the
(ii) Registries maintained by federal, Shanksville, Pennsylvania site at the
state, or local governments; or § 685.212 Discharge of a loan obligation. time of or in the immediate aftermath of
(iii) Records of all continuing medical * * * * * the terrorist-related aircraft crashes on
cprice-sewell on PROD1PC66 with RULES

treatment. (i) September 11 survivors discharge. September 11, 2001 and the individual
(4) To establish the borrower’s If a borrower meets the requirements in died as a direct result of these crashes;
relationship to the eligible public § 685.218, the Secretary discharges the or
servant or eligible victim, such obligation of the borrower and any (ii) Died on board American Airlines
additional information may include but endorser to make any further flights 11 or 77 or United Airlines
is not limited to— payments— flights 93 or 175 on September 11, 2001.

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78084 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

(5) Became permanently and totally Generally, this includes the immediate the borrower within 60 days of the
disabled due to injuries suffered in the area in which the impact occurred, fire borrower notifying the Secretary that the
terrorist attacks on September 11, 2001 occurred, portions of buildings fell, or borrower claims to qualify for a
means the individual was present at the debris fell upon and injured persons. discharge, the Secretary resumes
World Trade Center in New York City, (b) September 11 survivors discharge. collection and grants forbearance of
New York, at the Pentagon in Virginia, (1) The Secretary discharges the payment of both principal and interest
or at the Shanksville, Pennsylvania site obligation of a borrower and any for the period in which collection
at the time of or in the immediate endorser to make any further payments activity was suspended. The Secretary
aftermath of the terrorist-related aircraft on an eligible Direct Loan if the notifies the borrower that the
crashes on September 11, 2001 and the borrower was, at the time of the terrorist application for the discharge has been
individual became permanently and attacks on September 11, 2001, and denied, provides the basis for the
totally disabled as a direct result of currently is, the spouse of an eligible denial, and informs the borrower that
these crashes. public servant, unless the eligible public the Secretary will resume collection on
(i) An individual is considered servant has died. If the eligible public the loan. The Secretary may capitalize
permanently and totally disabled if— servant has died, the borrower must any interest accrued and not paid
(A) The disability is the result of a have been the spouse of the eligible during this period.
physical injury to the individual that public servant at the time of the terrorist (4) If the Secretary determines that the
was treated by a medical professional attacks on September 11, 2001 and until borrower qualifies for a discharge under
within 24 hours of the injury having the date the eligible public servant died. this section, the Secretary notifies the
been sustained or within 24 hours of the (2) The Secretary discharges the borrower that the loan has been
rescue; obligation of a borrower and any discharged or, in the case of a partial
(B) The physical injury that caused endorser to make any further payments discharge of a Direct Consolidation
the disability is verified by towards the portion of a joint Direct Loan, partially discharged. Except in the
contemporaneous medical records Consolidation Loan incurred on behalf case of a partial discharge of a Direct
created by or at the direction of the of an eligible victim if the borrower was, Consolidation Loan, the Secretary
medical professional who provided the at the time of the terrorist attacks on returns to the sender any payments
medical care; and September 11, 2001, and currently is, received by the Secretary after the date
(C) The individual is unable to work the spouse of an eligible victim, unless the loan was discharged.
and earn money due to the disability the eligible victim has died. If the (5) The Secretary discharges a Direct
and the disability is expected to eligible victim has died, the borrower Loan owed by an eligible victim or an
continue indefinitely or result in death. must have been the spouse of the eligible public servant under the
(ii) If the injuries suffered due to the eligible victim at the time of the terrorist procedures in § 685.212 for a discharge
terrorist-related aircraft crashes did not attacks on September 11, 2001 and until based on death or under the procedures
make the individual permanently and the date the eligible victim died. in § 685.213 for a discharge based on a
totally disabled at the time of or in the (3) If the borrower is an eligible
total and permanent disability.
immediate aftermath of the attacks, the parent—
individual may be considered to be (i) The Secretary discharges the (d) Documentation that an eligible
permanently and totally disabled for obligation of a borrower and any public servant or eligible victim died
purposes of this section if the endorser to make any further payments due to injuries suffered in the terrorist
individual’s medical condition has on a Direct PLUS Loan incurred on attacks on September 11, 2001. (1)
deteriorated to the extent that the behalf of an eligible victim. Documentation that an eligible public
individual is permanently and totally (ii) The Secretary discharges the servant died due to injuries suffered in
disabled. obligation of the borrower and any the terrorist attacks on September 11,
(6) Immediate aftermath means, endorser to make any further payments 2001 must include—
except in the case of an eligible public towards the portion of a Direct (i) A certification from an authorized
servant, the period of time from the Consolidation Loan that repaid a PLUS official that the individual was a
aircraft crashes until 12 hours after the Loan incurred on behalf of an eligible member of the Armed Forces, or was
crashes. With respect to eligible public victim. employed as a police officer, firefighter,
servants, the immediate aftermath (c) Applying for discharge. (1) The or other safety or rescue personnel, and
includes the period of time from the Secretary discharges a Direct Loan owed was present at the World Trade Center
aircraft crashes until 96 hours after the by the spouse of an eligible public in New York City, New York, at the
crashes. servant or the spouse or parent of an Pentagon in Virginia, or at the
(7) Present at the World Trade Center eligible victim under the procedures for Shanksville, Pennsylvania site at the
in New York City, New York, at the a discharge in paragraphs (c)(2) through time of the terrorist-related aircraft
Pentagon in Virginia, or at the (c)(4) of this section. crashes or in the immediate aftermath of
Shanksville, Pennsylvania site means (2) After being notified by the these crashes; and
physically present at the time of the borrower that the borrower claims to (ii) The inclusion of the individual on
terrorist-related aircraft crashes or in the qualify for a discharge under this an official list of the individuals who
immediate aftermath— section, the Secretary suspends died in the terrorist attacks on
(i) In the buildings or portions of the collection activity on the borrower’s September 11, 2001.
buildings that were destroyed as a result eligible Direct Loans and requests that (2) If the individual is not included on
of the terrorist-related aircraft crashes; the borrower submit a request for an official list of the individuals who
or discharge on a form approved by the died in the terrorist attacks on
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(ii) In any area contiguous to the crash Secretary. September 11, 2001, the borrower must
site that was sufficiently close to the site (3) If the Secretary determines that the provide—
that there was a demonstrable risk of borrower does not qualify for a (i) The certification described in
physical harm resulting from the impact discharge under this section, or the paragraph (d)(1)(i) of this section;
of the aircraft or any subsequent fire, Secretary does not receive the (ii) An original or certified copy of the
explosions, or building collapses. completed discharge request form from individual’s death certificate; and

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(iii) A certification from a physician documentation specified in paragraphs (4) If the borrower is the spouse or
or a medical examiner that the (d)(1) through (d)(5) of this section only parent of an eligible victim, and has
individual died due to injuries suffered under exceptional circumstances and on been granted a discharge on a FFEL
in the terrorist attacks on September 11, a case-by-case basis. Program Loan, or another Direct Loan
2001. (e) Documentation that an eligible because the eligible victim became
(3) If the individual owed a FFEL public servant or eligible victim became permanently and totally disabled due to
Program Loan, a Direct Loan, or a permanently and totally disabled due to injuries suffered in the terrorist attacks
Perkins Loan at the time of the terrorist injuries suffered in the terrorist attacks on September 11, 2001, documentation
attacks on September 11, 2001, on September 11, 2001. (1) of the discharge may be used as an
documentation that the individual’s Documentation that an eligible public alternative to the documentation in
loans were discharged by the lender, the servant became permanently and totally paragraph (e)(2) of this section.
Secretary, or the institution due to death disabled due to injuries suffered in the (f) Additional information. (1) The
may be substituted for the original or terrorist attacks on September 11, 2001 Secretary may require the borrower to
certified copy of a death certificate. must include— submit additional information that the
(4) Documentation that an eligible (i) A certification from an authorized Secretary deems necessary to determine
victim died due to injuries suffered in official that the individual was a the borrower’s eligibility for a discharge
the terrorist attacks on September 11, member of the Armed Forces or was under this section.
2001 is the inclusion of the individual employed as a police officer, firefighter (2) To establish that the eligible
on an official list of the individuals who or other safety or rescue personnel, and public servant or eligible victim was
died in the terrorist attacks on was present at the World Trade Center present at the World Trade Center in
September 11, 2001. in New York City, New York, at the New York City, New York, at the
(5) If the eligible victim is not Pentagon in Virginia, or at the
Pentagon in Virginia, or at the
included on an official list of the Shanksville, Pennsylvania site, such
Shanksville, Pennsylvania site at the
individuals who died in the terrorist additional information may include but
time of the terrorist-related aircraft
attacks on September 11, 2001, the is not limited to—
crashes or in the immediate aftermath of
borrower must provide— (i) Records of employment;
these crashes;
(i) The documentation described in (ii) Contemporaneous records of a
paragraphs (d)(2)(ii), (d)(2)(iii), and (ii) Copies of contemporaneous
medical records created by or at the federal, state, city, or local government
(d)(3) of this section; and agency;
(ii) A certification signed by the direction of a medical professional who
provided medical care to the individual (iii) An affidavit or declaration of the
borrower that the eligible victim was eligible public servant’s or eligible
present at the World Trade Center in within 24 hours of the injury having
been sustained or within 24 hours of the victim’s employer; or
New York City, New York, at the (iv) A sworn statement (or an
Pentagon in Virginia, or at the rescue; and
unsworn statement complying with 28
Shanksville, Pennsylvania site at the (iii) A certification by a physician,
U.S.C. 1746) regarding the presence of
time of the terrorist-related aircraft who is a doctor of medicine or
the eligible public servant or eligible
crashes or in the immediate aftermath of osteopathy and legally authorized to
victim at the site.
these crashes. practice in a state, that the individual
(3) To establish that the disability of
(6) If the borrower is the spouse of an became permanently and totally
the eligible public servant or eligible
eligible public servant, and has been disabled due to injuries suffered in the
victim is due to injuries suffered in the
granted a discharge on a Perkins Loan, terrorist attacks on September 11, 2001.
terrorist attacks on September 11, 2001,
a FFEL Program loan or another Direct (2) Documentation that an eligible
such additional information may
Loan because the eligible public servant victim became permanently and totally
include but is not limited to—
died due to injuries suffered in the disabled due to injuries suffered in the (i) Contemporaneous medical records
terrorist attacks on September 11, 2001, terrorist attacks on September 11, 2001 of hospitals, clinics, physicians, or other
documentation of the discharge may be must include— licensed medical personnel;
used as an alternative to the (i) The documentation described in (ii) Registries maintained by federal,
documentation in paragraphs (d)(1) paragraphs (e)(1)(ii) and (e)(1)(iii) of this state, or local governments; or
through (d)(3) of this section. section; and (iii) Records of all continuing medical
(7) If the borrower is the spouse or (ii) A certification that the eligible treatment.
parent of an eligible victim, and has victim was present at the World Trade (4) To establish the borrower’s
been granted a discharge on a FFEL Center in New York City, New York, at relationship to the eligible public
Program Loan or another Direct Loan the Pentagon in Virginia, or at the servant or eligible victim, such
because the eligible victim died due to Shanksville, Pennsylvania site at the additional information may include but
injuries suffered in the terrorist attacks time of the terrorist-related aircraft is not limited to—
on September 11, 2001, documentation crashes or in the immediate aftermath of (i) Copies of relevant legal records
of the discharge may be used as an these crashes. including court orders, letters of
alternative to the documentation in (3) If the borrower is the spouse of an testamentary or similar documentation;
paragraphs (d)(4) and (d)(5) of this eligible public servant, and has been (ii) Copies of wills, trusts, or other
section. granted a discharge on a Perkins Loan, testamentary documents; or
(8) The Secretary may discharge the a FFEL Program loan, or another Direct (iii) Copies of approved joint FFEL or
loan based on other reliable Loan because the eligible public servant Direct Loan Consolidation Loan
documentation that establishes, to the became permanently and totally applications or an approved Direct
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Secretary’s satisfaction, that the eligible disabled due to injuries suffered in the PLUS Loan application.
public servant or the eligible victim terrorist attacks on September 11, 2001, (g) Limitations on discharge. (1) Only
died due to injuries suffered in the documentation of the discharge may be Direct Subsidized Loans, Direct
September 11, 2001 attacks. The used as an alternative to the Unsubsidized Loans, Direct PLUS Loans
Secretary discharges a loan based on documentation in paragraph (e)(1) of and Direct Consolidation Loans for
documentation other than the this section. which amounts were owed on

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78086 Federal Register / Vol. 71, No. 249 / Thursday, December 28, 2006 / Rules and Regulations

September 11, 2001, or Direct added cost, and the minimal air quality (OMB), Attn: Desk Officer for EPA, 725
Consolidation Loans incurred to pay off benefits the Tier 2 gasoline sulfur 17th St. NW., Washington, DC 20503.
loan amounts that were owed on requirement would provide to American Instructions: Direct your comments to
September 11, 2001, are eligible for Samoa. Representatives of the Docket ID No. EPA–HQ–OAR–2006–
discharge under this section. Governors of Guam and C.N.M.I. have 0363. EPA’s policy is that all comments
(2) Eligibility for a discharge under also requested an exemption referencing received will be included in the public
this section does not qualify a borrower the petition submitted by American docket without change and may be
for a refund of any payments made on Samoa. Generally, the Far East market, made available online at http://
the borrower’s Direct Loans prior to the primarily Singapore, supplies gasoline www.regulations.gov, including any
date the loan was discharged. to the U.S. Pacific Island Territories. personal information provided, unless
(3) A determination that an eligible The Tier 2 sulfur standard effectively the comment includes information
public servant or an eligible victim requires special gasoline shipments, claimed to be Confidential Business
became permanently and totally which would increase the cost and Information (CBI) or other information
disabled due to injuries suffered in the could jeopardize the security of the whose disclosure is restricted by statute.
terrorist attacks on September 11, 2001 gasoline supply to the Pacific Island Do not submit information that you
for purposes of this section does not Territories. The air quality in American consider to be CBI or otherwise
qualify the eligible public servant or the Samoa, Guam, and C.N.M.I. is generally protected through http://
eligible victim for a discharge based on pristine, due to the wet climate, strong www.regulations.gov or e-mail. The
a total and permanent disability under prevailing winds, and considerable http://www.regulations.gov Web site is
§ 685.213. distance from any pollution sources. We an ‘‘anonymous access’’ system, which
(4) The spouse of an eligible public recognize that exempting the U.S. means EPA will not know your identity
servant or eligible victim may not Pacific Island Territories from the or contact information unless you
receive a discharge under this section if gasoline sulfur standard will result in provide it in the body of your comment.
the eligible public servant or eligible smaller emission reductions. However, If you send an e-mail comment directly
victim has been identified as a Tier 2 vehicles using higher sulfur to EPA without going through http://
participant or conspirator in the gasoline still emit 30% less www.regulations.gov your e-mail
terrorist-related aircraft crashes on hydrocarbons and 60% less NOX than address will be automatically captured
September 11, 2001. An eligible parent Tier 1 vehicles and negative effects on and included as part of the comment
may not receive a discharge on a Direct the catalytic converter due to the higher that is placed in the public docket and
PLUS Loan or on a Direct Consolidation sulfur levels are, in many cases, made available on the Internet. If you
Loan that was used to repay a Direct reversible. Additionally, these reduced submit an electronic comment, EPA
Loan or FFEL Program PLUS Loan benefits are acceptable due to the recommends that you include your
incurred on behalf of an individual who pristine air quality, the fact that gasoline name and other contact information in
has been identified as a participant or quality will not change, and the cost the body of your comment and with any
conspirator in the terrorist-related and difficulty of consistently acquiring disk or CD–ROM you submit. If EPA
aircraft crashes on September 11, 2001. Tier 2 compliant gasoline. The Tier 2 cannot read your comment due to
[FR Doc. E6–22245 Filed 12–27–06; 8:45 am] motor vehicle rule also sets standards technical difficulties and cannot contact
BILLING CODE 4000–01–P for vehicle emissions. Vehicles in use you for clarification, EPA may not be
on the U.S. Pacific Island Territories able to consider your comment.
will not be exempt from the Tier 2 Electronic files should avoid the use of
ENVIRONMENTAL PROTECTION vehicle emission standards. However, special characters, any form of
AGENCY additional flexibility will be afforded encryption, and be free of any defects or
due to the lack of low sulfur gasoline. viruses.
40 CFR Parts 80 and 86 DATES: This direct final rule is effective Docket: All documents in the docket
on March 28, 2007 without further are listed in the http://
[EPA–HQ–OAR–2006–0363; FRL–8263–4] www.regulations.gov index. Although
notice, unless EPA receives adverse
RIN 2060–AN66 comments by January 29, 2007. If we listed in the index, some information is
receive adverse comments, we will not publicly available, e.g., CBI or other
Amendment to Tier 2 Vehicle Emission publish a timely withdrawal in the information whose disclosure is
Standards and Gasoline Sulfur Federal Register informing the public restricted by statute. Certain other
Requirements: Partial Exemption for that this rule will not take effect. material, such as copyrighted material,
U.S. Pacific Island Territories ADDRESSES: Submit your comments, will be publicly available only in hard
AGENCY: Environmental Protection identified by Docket ID No. EPA–HQ– copy. Publicly available docket
Agency (EPA). OAR–2006–0363, by one of the materials are available either
following methods: electronically in http://
ACTION: Direct final rule.
• http://www.regulations.gov: Follow www.regulations.gov or in hard copy at
SUMMARY: EPA is taking direct final the on-line instructions for submitting the Air Docket, EPA/DC, EPA West,
action to exempt the three U.S. Pacific comments. Room B102, 1301 Constitution Ave.,
Island Territories—American Samoa, • Mail: Air Docket, Environmental NW., Washington, DC. The Public
Guam, and the Commonwealth of the Protection Agency, Mailcode: 6102T, Reading Room is open from 8:30 a.m. to
Northern Mariana Islands (C.N.M.I.)— 1200 Pennsylvania Ave., NW., 4:30 p.m., Monday through Friday,
from the gasoline sulfur requirements Washington, DC 20460, Attention excluding legal holidays. The telephone
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that EPA promulgated in the Tier 2 Docket ID No. EPA–HQ–OAR–2006– number for the Public Reading Room is
motor vehicle rule. The Governor of 0363. In addition, please mail a copy of (202) 566–1744, and the telephone
American Samoa petitioned us for an your comments on the information number for the Air Docket is (202) 566–
exemption from the Tier 2 gasoline collection provisions to the Office of 1742.
sulfur requirement because of the Information and Regulatory Affairs, Note: The EPA Docket Center suffered
potential for gasoline shortages, the Office of Management and Budget damage due to flooding during the last week

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