DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY.

SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY.(a) FFEL and Direct Loans.—Section 437(a) (20 U.S.C. 1087(a)) is amended—(1) by striking “(a) Repayment in Full for Death and Disability.—If a” and inserting the following:“(a) Repayment in Full for Death and Disability.—“(1) In general.—If a”;(2) by inserting “, or if a student borrower who has received such a loan is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months” after “of the Secretary),”; and(3) by adding at the end the following: “The Secretary may develop such safeguards as the Secretary determines necessary to prevent fraud and abuse in the discharge of liability under this subsection. Notwithstanding any other provision of this subsection, the Secretary may promulgate regulations to reinstate the obligation of, and resume collection on, loans discharged under this subsection in any case in which—“(A) a borrower received a discharge of liability under this subsection and after the discharge the borrower—“(i) receives a loan made, insured, or guaranteed under this title; or122 STAT. 3258“(ii) has earned income in excess of the poverty line; or“(B) the Secretary determines necessary.”.(b) Disability Determinations.—Section 437(a) (20 U.S.C. 1087(a)) is further amended by adding at the end the following:“(2) Disability determinations.—A borrower who has been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected condition and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower’s loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.”.(c) Effective Date.—The amendments made by subsection (a) shall take effect on July 1, 2010.