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(Disaster Letter-97-23) (Disaster Letter-97-23) Typhoon Keith in the Northern Mariana Islands.

DCLPublicationDate: 12/1/97
DCLID: Disaster Letter-97-23
AwardYear:
Summary: Typhoon Keith in the Northern Mariana Islands.


December 10, 1997

DISASTER LETTER 97-23: Typhoon Keith in the Northern
Mariana Islands.


Dear Guaranty Agency Director:

On December 8, President Clinton declared the
COMMONWEALTH OF THE NORTHERN
MARIANA ISLANDS to be a disaster area because of damage
caused by Typhoon Keith beginning November 2. Following the
President's declaration, the Federal Emergency Management
Agency (FEMA) designated the islands of ROTA, SAIPAN, and
TINIAN in the commonwealth to be covered under FEMA's disaster
assistance programs. Guaranty agencies and lenders are authorized
to use the Department's disaster-related forbearance policies to assist
FFEL borrowers who are residents of those islands.

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.

Sincerely,


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