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(Disaster Letter-97-22) (Disaster Letter-97-22) Storm damage and flooding in New Jersey.

DCLPublicationDate: 9/1/97
DCLID: Disaster Letter-97-22
Summary: Storm damage and flooding in New Jersey.

September 25, 1997

DISASTER LETTER 97-22: Storm damage and flooding in
New Jersey.

Dear Guaranty Agency Director:

On September 23, President Clinton declared ATLANTIC county in
NEW JERSEY to be a disaster area because of storm damage and
flooding that began on August 20. Guaranty agencies and lenders
are authorized to use the Department's disaster-related forbearance
policies to assist FFEL borrowers who are residents of that county.

1. Loan holders are strongly recommended to grant forbearances
to borrowers who contact them and indicate that they have
been adversely affected by the disaster and need temporary
relief from their loan obligations. If the holder believes that
the borrower has been harmed and needs assistance, the
holder may grant a forbearance for up to 3 months based on
either the borrower's oral or written request for assistance,
which must be documented in the holder's files.

2. The holder does not need to obtain supporting documentation
or a signed written agreement from the borrower to justify a
forbearance for this initial 3-month period. The Secretary
will decline to enforce the requirements of 34 CFR
682.211(c) for this period.

3. A continuation of the forbearance past this 3-month period
will require supporting documentation and a written
agreement from the borrower.

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, the National Association of Student Financial
Aid Administrators, and the Student Loan Servicing Alliance.


Pamela A. Moran
Chief, Loans Branch
Policy Development Division
Student Financial Assistance Programs

Last Modified: 08/31/1997