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Title 20 . Miscellaneous Boards and Commissions
Chapter 18 . Mental Health Trust Authority
Section 140. Medical cancellations

20 AAC 18.140. Medical cancellations

(a) Except as provided in this section, and notwithstanding 20 AAC 18.200, an application to cancel a borrower's obligation to repay a PSE loan is subject to the requirements and procedures of 20 AAC 15.920, as amended as of March 3, 2002 and as amended from time to time; those regulations are adopted by reference.

(b) A borrower seeking cancellation of a loan due to medical disability shall submit a request on a form obtained from the commission. A physician who practices within the medical field covering the disability, who has examined the borrower within the prior 12 months, and who is licensed to practice medicine in the state where the examination took place must certify that, after the date the commission last paid a support fee on behalf of the borrower, the borrower

(1) became 100 percent permanently disabled; and

(2) as result of the disability became unable for an indefinite period of time to be gainfully employed or to attend school full-time.

(c) If the borrower had a pre-existing condition at the time that the borrower obtained the PSE loan, the physician must additionally certify that the condition has substantially deteriorated since the time that the borrower obtained the loan.

(d) If a cosigner is also obligated to repay the PSE loan, the commission staff will notify the cosigner of the medical cancellation application and give the cosigner an opportunity to show why the loan does not qualify for cancellation under this section.

(e) Notwithstanding the borrower's medical condition, the borrower may not obtain cancellation of the borrower's obligation on a PSE loan if the borrower has sufficient income and or financial resources to repay the PSE loan. The commission staff may require financial information from the borrower in order for the borrower's ability to repay the loan to be determined. The borrower is able to repay the loan if the borrower is ineligible for an extension for economic hardship under 20 AAC 18.120(d) .

(f) A cosigner, if any, may bring an appeal or participate in a hearing under 20 AAC 15.920(e) .

(g) Repealed 12/31/2005.

History: Eff. 11/8/2000, Register 156; am 3/1/2002, Register 161; am 1/30/2003, Register 165; am 12/31/2005, Register 176

Authority: AS 14.42.030

AS 14.44.035

AS 14.44.040


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Last modified 7/05/2006