Disaster Areas - Florida, Kansas, and Texas



Lenders and Schools
November 30, 1998
Disaster Areas - Florida (new counties in italics), Kansas (new counties in italics) and Texas (new counties in italics)


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.

Monroe and Palm Beach county in Florida has been declared to be a disaster area because of storm damage caused by Tropical Storm Mitch beginning November 4, 1998.

Butler, Chase, Coffey, Cowley, Douglas, Franklin, Harvey, Lyon, Neosho, Sedgwick, Sumner, and Wilson counties in Kansas have been declared to be disaster areas because of flooding and storm damages beginning October 30, 1998.

In addition, Atascoa, Austin, Bastrop, Bexar, Brazoria, Burelson, Caldwell, Calhoun, Colorado, Comal, DeWitt, Fayette, Ft. Bend, Galveston,Goliad, Gonzales, Guadalupe, Harris, Hays, Jackson, Karnes, Liberty, Matagorda, Montgomery, Nueces, Refugio, San Jacinto, Travis, Victoria, Waller, Wharton, and Wilson counties in Texas have been declared to be disaster areas because of flooding and storm damage beginning October 17, 1998.

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 after the disaster strikes the borrower, 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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