|(a) Contracts. The board shall contract with any insurance company or companies licensed to do business in Texas for insurance on the life of all student borrowers in an amount sufficient to retire the principal and interest owed on all loans made on or before August 31, 1969, as provided in the Act. The cost of such insurance shall be paid by the student borrowers. No contract for insurance as provided for in this section may be approved except by the board, and during a regular meeting attended by a quorum of the total board membership. (b) Insurance costs. The cost of such life insurance as provided for in subsection (a) of this section in an amount sufficient to cover each student borrower's indebtedness to the fund made on or before August 31, 1969, shall be at the rate of $.12 per $1,000 per month, and shall remain in effect on all such loans until they are fully repaid. The rate shall remain effective until changed by the board.
(c) Repayment by United States commissioner of loans of deceased or disabled borrowers. If a student borrower who has received a loan under the Hinson-Hazlewood College Student Loan Act on September 1, 1969, and thereafter with respect to which a portion of the interest is payable by the United States commissioner of education under the Higher Education Act of 1965, Title IV, Part B, §428(a), as amended, or would be payable but for the adjusted family income of the borrowers, dies or becomes permanently and totally disabled (as determined in accordance with regulations of the United States commissioner of education), then the United States commissioner of education shall discharge the borrower's liability on the loan by repaying the amount owed on the loan.