Additional disaster areas and guidance on treatment of FFELP borrowers affected by U.S. Military involvement in Bosnia



Lenders and Schools
February 18, 1997
Additional disaster areas and guidance on treatment of FFELP borrowers affected by U.S. Military involvement in Bosnia

To assure that your Common Manual remains current, please record this document on your LPM/LPB index, and retain it in Appendix E of your manual.

Additional disaster areas for recent weather-related problems in Washington

Severe weather-related problems have resulted in twelve new counties in Washington being designated as natural disaster areas. Those seeking more information may contact the U.S. Department of Education's (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. The following new areas should be treated the same as those that appeared on LOSFA's January 28, 1997 LPB:

Clallam, Gray's Harbor, Island, Kitsap, Kittatas, Mason, Pierce, Skagit, Skamania, Spokane, Thurston, Yakima.


Guidance concerning the treatment of FFEL Program borrowers who remain affected by U.S. military involvement in Bosnia

Certain members of the Armed Forces of the United States, including individuals and units of the National Guard and the Reserves, continue to be involved with the ongoing U.S. role in Bosnia.

The Department has notified us that the interests of the Nation require the suspension of collection efforts in the FFELP that would otherwise be directed against members of the Armed Forces who are involved in the Armed Forces operations related to Bosnia. This suspension applies to all of these borrowers, including those who would otherwise be subject to default collection efforts by guaranty agencies. Participating lenders will apply the mandatory administrative forbearance rules in 34 CFR §682.211(j)(2)(i) to these borrowers. Guaranty agencies will follow these same procedures with respect to borrowers who are obligated to repay the agencies.

The mandatory administrative forbearance will end on December 1, 1997 and, in accordance with §682.211(j)(2)(i), all normal collection activities will resume on January 1, 1998. The Department expects that before resuming normal collection activities, lenders and guarantors will notify borrowers of the scheduled termination of the forbearance period. The notice to borrowers is most effective if sent 45 to 90 days before the resumption of collection activities - in this case, between October 1 and November 15, 1997.

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