(a) Upon final verification of the death or determination of permanent and total disability of a borrower, all loans through the Program shall be discharged unless there is a judgment against the borrower and the Commissioner determines that a release of the borrower's liability is not in the best interest of the Program.
(b) Verification of death and determination of permanent and total disability of a borrower or cosigner through the FSL, FSLS, and CAL programs shall be made in accordance with the governing provisions of the FSL program.
(c) Verification of death or determination of permanent and total disability of a borrower or cosigner through the HEAL and HELP programs shall be made in accordance with the governing provisions of the HEAL program.
(d) The final verification of death and determination of permanent and total disability of a borrower or cosigner shall be made by the appropriate official for each loan program as follows:
  (1) for FSL, the United States Secretary of Education;
  (2) for FSLS, the United States Secretary of Education;
  (3) for CAL, the Commissioner;
  (4) for HEAL, the United States Secretary of Health and Human Services; and
  (5) for HELP, the Commissioner.
(e) Upon final verification of the death or determination of permanent and total disability of a borrower, the liability of the cosigner/accommodation party for that borrower shall be discharged.
(f) Upon final verification of the death or determination of permanent and total disability of a cosigner, the Commissioner shall determine if the release of the liability of the cosigner is in the best interest of the loan program and, if so, shall authorize a release of the cosigner's liability, whether or not there is a judgment against the cosigner.

Source Note: The provisions of this §22.54 adopted to be effective May 22, 2003, 28 TexReg 3950; amended to be effective August 15, 2006, 31 TexReg 6332; transferred effective June 1, 2017, as published in the Texas Register May 19, 2017, 42 TexReg 2739