Nevada Revised Statutes 670B.490 – Duties and prohibited acts in event of total and permanent disability of private education loan borrower or cosigner
1. A private education lender, when notified of the total and permanent disability of a private education loan borrower or cosigner, shall release any cosigner from the obligations of the cosigner under a private education loan. The private education lender shall not attempt to collect a payment from a cosigner following a notification of total and permanent disability of the private education loan borrower or cosigner.
Terms Used In Nevada Revised Statutes 670B.490
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
2. A private education lender shall notify a private education loan borrower and cosigner for a private education loan if either a private education loan borrower or cosigner is released from the obligations of the private education loan under this section, within 30 days after the release.
3. A private education lender that extends a private education loan shall provide the private education loan borrower an option to designate an individual to have the legal authority to act on behalf of the private education loan borrower with respect to the loan in the event of the total and permanent disability of the private education loan borrower.
4. If a cosigner is released from the obligations of a private education loan pursuant to subsection 1, the private education lender shall not:
(a) Require the private education loan borrower to obtain another cosigner on the private education loan obligation.
(b) Declare a default or accelerate the debt against the private education loan borrower on the sole basis of the release of the cosigner from the private education loan obligation.
5. A private education lender, if notified of the total and permanent disability of a private education loan borrower:
(a) Shall discharge the liability of the private education loan borrower and cosigner on the private education loan; and
(b) Shall not:
(1) Attempt to collect on the outstanding liability of the private education loan borrower or cosigner; or
(2) Monitor the disability status of the private education loan borrower at any point after the date of discharge.
6. As used in this section, ‘total and permanent disability’ means that a person:
(a) Has been determined by the United States Secretary of Veterans Affairs to be unemployable due to a service-connected disability; or
(b) 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 12 months or can be expected to last for a continuous period of not less than 12 months.