September 21, 2001

Department of Education Issues Guidance for Borrowers, Institutions Following Terrorist Attacks

The Department of Education has published two "Dear Colleague" letters to provide guidance to borrowers and institutions affected by the Sept. 11 terrorist attacks. Dear Colleague Letter (DCL) GEN-01-11 provides relief for borrowers under the Federal Family Education Loan (FFEL), the Ford Federal Direct Loan and Federal Perkins Loan programs. DCL GEN-01-12 addresses several institutional reporting deadlines. The Department has indicated its intention to issue two additional letters to address treatment of student and borrowers affected by the recent military mobilization, and to comprehensively deal with other regulatory and administrative relief to affected parties.

Specifically, the two letters note that President Bush has designated all five boroughs of New York City as eligible for national disaster assistance. DCL GEN-01-11 provides for automatic administrative forbearance until Jan. 31, 2002, for individuals who reside or work in the five boroughs, as well as for other borrowers who have been adversely affected and request such a forbearance in writing. Additionally, default collections are also curtailed until Jan. 31, 2002, for individuals that work or reside in New York City and others who are affected and request such in writing. DCL GEN-01-12 provides that affected schools may request extensions on the filing deadlines for FISAP and final 2000-2001 Federal Pell Grant reporting. The 30-day deadlines for schools to submit Federal Pell Grant disbursement records and Federal Direct Loan records are also extended to 90-days for schools impacted by the disaster, and may be extended further on a case-by-case basis.

Information: Jonathan Fishburn, AAMC Office of Governmental Relations, 202-828-0525.