Relief for Borrowers Affected by Recent Terrorist Attacks
The U.S. Department of Education (ED) recently released two Dear Colleague Letters, GEN-01-11 and GEN-01-12, providing guidance regarding the administration of the federal student aid programs as a result of the terrorist attacks on the United States. GEN-01-11 specifically addresses the immediate needs of borrowers who are in repayment on a loan under the Federal Family Education Loan (FFEL) and Federal Perkins Loan Programs. GEN-01-12 addresses immediate concerns involving institutional deadlines that may impact certain schools. ED intends to publish a third letter that deals with the treatment of students and borrowers who are affected by the recent military mobilization. A fourth letter will comprehensively address other issues that relate to regulatory and administrative relief for those affected by the terrorist attacks.
On September 11, 2001, President Bush designated all five boroughs of New York City (The Bronx, Brooklyn, Manhattan, Queens, and Staten Island) as eligible for national disaster assistance. GEN-01-11 provides guidance to Title IV loan holders on the granting of forbearances and discharges to borrowers who have been affected by the disaster. The letter addresses the following: