Disaster Areas - Illinois, Iowa, North Dakota, and South Dakota



Lenders and Schools
June 14, 1999
Disaster Areas - Illinois, Iowa (new counties in italics), North Dakota, and South Dakota

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.

Jo Daviess county in Illinois has been declared to be a disaster area because of damages caused by severe storms and flooding that occurred May 16, 1999.

Black Hawk, Bremer, Buchanan, Butler, Clayton, Clinton, Crawford, Delaware, Dubuque, Fayette, Harrison, Jones, and Linn counties in Iowa have been declared to be disaster areas because of damages caused by severe storms, tornadoes, and flooding beginning May 16, 1999.

Barnes, Benson, Bottineau, Burleigh, Cass, Dickey, Emmons, Foster, Grand Forks, Griggs, Kidder, LaMoure, Logan, McHenry, McIntosh, McLean, Mountrail, Nelson, Pembina, Pierce, Ramsey, Ransom, Renville, Richland, Rolette, Sargent, Sheridan, Steele, Stutsman, Towner, Traill, Walsh, Ward, and Wells counties, and the American Indian reservations of the Devil’s Lake Sioux Tribe, the Fort Berthold Tribe, and the Turtle Mountain Band of Chippewa in North Dakota have been declared to be disaster areas because of damages caused by severe storms, tornadoes, snow and ice, flooding, ground saturation, landslides, and mudslides beginning March 1, 1999.

Shannon county and the Pine Ridge Indian reservation in South Dakota have been declared to be disaster areas because of damages caused by tornadoes and flooding beginning June 4, 1999.

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.



Home Page Policy and Procedure Menu
Information Center Menu LPM/LPB Index