Common use of Verification Procedure and Opportunity to Contest Clause in Contracts

Verification Procedure and Opportunity to Contest. Once SSA identifies a borrower who is receiving SSI or SSDI disability payments as having a disability status of MINE, ED will contact borrowers of Title IV Loans and inform those individuals of the TPD discharge process. ED will accept SSA’s MINE determination in lieu of requiring the borrower to submit SSA’s award letter with a MINE designation. ED will discharge the borrowers Title IV Loans no earlier than 61 days after ED has notified a borrower, unless the borrower chooses to have their Title IV Loans discharged earlier or chooses to opt out of the TPD discharge, thereby simplifying the TPD discharge process for the borrower. Due to a recent change in tax law, federal student loan amounts that are discharged due to TPD are not considered to be income for federal tax purposes. However, some states consider loan amounts that are discharged due to TPD as income, meaning that a borrower may be taxed on the amount of the discharge. If the borrower receives a TPD discharge, the borrower should contact their state tax revenue office or a tax professional before filing their state tax return to find out how much the borrower could owe to the state as a result of the discharge. If a borrower is not identified by SSA as having a MINE status, the borrower still will have the option to submit a TPD loan discharge application and provide the required physician’s certification in order to determine his or her eligibility for a TPD.

Verification Procedure and Opportunity to Contest. Once SSA identifies for ED a borrower who is receiving SSI or SSDI disability payments as having a disability status of MINE, ED will contact borrowers of Title IV Loans and the borrower to inform those individuals them of the TPD discharge process. ED will accept SSA’s MINE determination in lieu of requiring the borrower to submit SSA’s award letter with a MINE designation. ED will discharge the borrowers borrower’s Title IV Loans Loan(s) no earlier than 61 days after ED has notified a sends the notification to the borrower, unless the borrower chooses to have their Title IV Loans Loan(s) discharged earlier or chooses to opt out of the TPD discharge, thereby simplifying the TPD discharge process for the borrower. There are no applicable requirements under subsection (p) of the Privacy Act for ED to verify the records provided by SSA and for ED to provide those borrowers of Title IV Loan(s) who matched with SSA’s records an opportunity to contest the information in SSA’s records because ED will not suspend, terminate, reduce, or make a final denial of any financial assistance or payment with respect to a Title IV Loan or take any other adverse action against a borrower as a result of information produced in this matching program. Due to a recent change in tax law, federal Federal student loan amounts that are discharged due to TPD are not considered to be income for federal Federal tax purposes. However, some states consider loan amounts that are discharged due to TPD as income, meaning that a borrower may be taxed on the amount of the discharge. If the borrower receives a TPD discharge, the borrower should contact their state tax revenue office or a tax professional before filing their state tax return to find out how much the borrower could owe to the state as a result of the discharge. If a borrower is not identified by SSA as having a MINE status, the borrower still will have the option to submit a TPD loan discharge application and provide the required physician’s certification in order to determine his or her the borrower’s eligibility for a TPD.