Disaster Areas - Tornadoes  and  Flooding  in   Florida  and Updated  List  of  Counties  Affected   by  Storms  and  Flooding  in  California  and   Ice  Storm  in  Maine



Lenders and Schools
February 20, 1998
 Disaster Areas - Tornadoes and Flooding in Florida and Updated List of Counties Affected by Storms and Flooding in California and Ice Storm in Maine


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.


Broward, Dade, and Monroe counties in Florida have been designated to be disaster areas because of tornadoes and flooding that began February 2, 1998.

LOSFA’s January 30, 1998 Loan Program Bulletin (LPB) advised of 15 counties in Maine designated to be disaster areas because of a severe ice storm that began January 5, 1998. Aroostook county in Maine has been added to that list, which qualifies the entire state of Maine as a disaster area. A February 16, 1998 LPB advised of 27 counties in California that had been designated disaster areas due to flooding that began February 2, 1998. Amador, Fresno, Sacramento, and Solano counties in California have been added to that list. The following disaster-related forbearance policies are authorized to assist FFEL borrowers who are residents of these areas.

Disaster-related Forbearance Policy

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.

We will notify you if additional areas are designated. Questions and concerns may be addressed to 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.


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