Summary: Federal Student Aid Programs - Hurricane Katrina - Extension of Automatic Forbearance

HURRICANE KATRINA INFORMATION - ELECTRONIC ANNOUNCEMENT #7

(11-1-2005)

From: Sally L. Stroup, Assistant Secretary for Postsecondary Education

Subject: Federal Student Aid Programs - Hurricane Katrina - Extension of Automatic Forbearance

Posted on 11-01-2005

Federal student loan borrowers participating in the Federal Family Education Loan, Direct Loan and Perkins Loan Programs who live in an area that has been designated by FEMA for disaster assistance for individuals due to Hurricane Katrina will automatically receive a loan-payment forbearance from August 29, 2005 through February 28, 2006. During this period, impacted borrowers are not required to make monthly payments on eligible loans. This is an extension of the 90-day forbearance granted under previous guidance issued by the Department for federal student loan borrowers impacted by a disaster. For additional information, see GEN-04-04: Subject: General guidance for helping Title IV participants affected by a disaster.