11/15/2005
Updates for Hurricanes Katrina & Rita
Waiver of Title IV Grant Repayment
As announced in Dear Colleague Letter GEN-05-17, students
with a Title IV grant overpayment that would normally be due under the Return
of Title IV Aid requirements may be entitled to a waiver if the student withdrew
because of a disaster under the following conditions:
The student was residing in, employed in, or attending an institution that is located in an area in which the President has declared that a major disaster exists;
The student withdrew because of the impact of the disaster on the student or the institution; and
The student's withdrawal occurred within the academic year during which the designation as a major disaster occurred or during the next succeeding academic year.
For purposes of this waiver, a "major disaster" must have been declared by the President. Major disaster designations are available by date of declaration on the Federal Emergency Management Agency's (FEMA) Web site at http://www.fema.gov/news/disasters.fema.
This waiver applies to student withdrawals occurring within an institution's academic year or the following academic year, beginning with any academic year that occurs, in whole or in part, within the 2005-2006 award year (July 1, 2005-June 30, 2006).
Additional details regarding this waiver are found in GEN-05-17.
Forbearance Extensions
Borrowers who live in an area that has been designated by FEMA for disaster
assistance due to Hurricanes Rita and Katrina will automatically
receive a mandatory administrative forbearance 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 of Education for federal student loan borrowers impacted by a disaster.
The forbearance extension for Hurricane Rita was announced in Electronic Announcement #4. And, for Hurricane Katrina, it was announced in Electronic Announcement #7. Additional information on disaster guidance is found in Dear Colleague Letter GEN-04-04.
Zip Code Listing
A zip code listing by county is available for confirming disaster areas affected
by Hurricanes Katrina, Rita and Wilma.
Click here to view the zip code list.
Have a question regarding this article?
Email OGSLP's Policy Implementation,
Training and Communications Division.
