| DCLPublicationDate: 4/1/97 DCLID: Disaster Letter-97-15 AwardYear: Summary: Liberalized forbearance policy for parts of North Dakota that have been severely impacted by recent flooding. April 25, 1997 SUMMARY: Liberalized forbearance policy for parts of North Dakota that have been severely impacted by recent flooding. Dear Guaranty Agency Director: On April 8, we notified you that President Clinton had designated NORTH DAKOTA as a disaster area on April 7 because of severe winter weather and flooding that began February 28. On April 24, we wrote to Student Loans of North Dakota in response to its April 23 letter to us describing the extraordinarily difficult circumstances that many North Dakotans have experienced because of the flooding. To provide additional assistance to borrowers in North Dakota during the immediate situation, we have modified our disaster forbearance policy by allowing loan holders to grant an administrative forbearance to certain borrowers in North Dakota without the requirement that the borrower contact the loan holder to request the forbearance. We are taking that action because the severity and extent of the flooding in North Dakota warrants that modification. The modified forbearance policy applies to the areas in North Dakota in which the U.S. Postal Service has been unable to pick up or deliver mail. We have been notified by Student Loans of North Dakota that the following counties in North Dakota are areas in which the U.S. Post Office has been unable to maintain normal postal service: CASS, GRAND FORKS, PEMBINA, RICHLAND, TRAILL, and WALSH. Loan Holders may administratively grant a 3-month forbearance to borrowers who reside in those counties, retroactive to February 28, without an actual request from the borrower. After the 3-month disaster forbearance period has elapsed and normal delivery of mail resumes, the Department encourages loan holders to grant discretionary forbearances under 34 CFR 682.211(c) to those borrowers who still need assistance. Lenders and guaranty agencies may contact the Department's toll- free number at 1-800-433-7327, Monday through Friday from 9:00 a.m. to 5:00 p.m. EST for further updates. This letter has also been sent to each regional office of the Department, plus the National Council of Higher Education Loan Programs, Inc., the Consumer Bankers Association, and the National Association of Student Financial Aid Administrators. Sincerely, Pamela A. Moran Chief, Loans Branch Policy Development Division Student Financial Assistance Programs |