Trends and Issues

Policy potpourri

Q.: Our school received a call from a borrower's family member advising that the borrower was deceased. Should the school advise the family to fax a copy of the borrower's death certificate to the lender so that the loan discharge process may be initiated?

A.: No. For the purpose of a FFELP loan discharge due to the borrower's death, the family member should mail to the borrower's lender an original or certified copy of the death certificate, or an accurate and complete photocopy of the original or certified copy of the death certificate. ED has clarified that it does not permit the use of a faxed or electronic version of the certificate because documents in those formats are more vulnerable to alteration. This clarification can be found in the Common Manual, Subsection 13.1.D under Additional Documentation Requirements, and in the Preamble language of the June 12, 2007, Federal Register.

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