| (a) An institution may extend the time for repayment
of loans for students who enroll in graduate or professional degree
programs for up to three years, but not longer than one year beyond
the time when the student fails to be enrolled in the institution
on at least a half-time basis.
(b) An institution shall forgive an emergency loan
to an individual who has been certified by a physician as having a
total and permanent disability. Total and permanent disability means
the borrower is:
(1) unable to engage in any substantial gainful activity
by reason of a medically determinable physical or mental impairment
that can be expected to result in death, that has lasted for a continuous
period of not less than 60 months, or that can be expected to last
for a continuous period of not less than 60 months; or
(2) the applicant is a veteran who has been determined
by the Secretary of Veterans Affairs to be unemployable due to a service-connected
disability.
(c) An institution shall maintain documentation justifying
the deferral of repayments or the forgiveness of emergency loans for
review by the State Auditor.
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