(a) The department may cancel a student's service or
repayment obligation if it determines that:
(1) the student is unable to complete the academic
program, internship or residency, attain certification or licensure,
or practice health care because of a total and permanent disability
verified by a sworn affidavit of a qualified physician; or
(2) the student has died and a court-certified copy
of a death certificate or other evidence of death that is conclusive
under state law has been submitted to the department.
(b) The cosigner of a promissory note shall not be
responsible for loan repayment, accrued interest or other charges
if the student dies or becomes totally and permanently disabled.
(c) The department may postpone the repayment requirement
for a student who is enrolled at least half time at an eligible academic
institution. A postponement period is not included when determining
the maximum repayment period.
(d) The department may cancel or postpone repayment
for a student who provides evidence of extreme financial hardship.
In the case of postponement, the period of postponement will not be
included in determining the maximum repayment period. The department
may require periodic payments on the accrued interest during the postponement
period.
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