NASFAA recently wrote to the Department voicing support for the mandatory forbearance approach taken in response to the September 11 terrorist attacks. Further, NASFAA urged the Department to give priority for deobligated funds to those schools that experience reduced Perkins Loan collections as a result of this forbearance action.]
October 11, 2001
Mr. William D. Hansen
Deputy Secretary
U.S. Department of Education
400 Maryland Avenue, SW
Washington, DC 20202
Dear Mr. Hansen:
I am writing on behalf of the more than 3,100 members of the National Association of Student Financial Aid Administrators (NASFAA) to thank you for the Department's prompt attention to the variety of student financial aid issues surrounding the tragic events of September 11, 2001. We appreciate your expeditious handling of related communications to the financial aid community.
We have been pleased to work with your staff as they crafted and refined the guidance that was issued though the Dear Colleague letters GEN-01-11, GEN-01-12, and GEN-01-13. While there may be additional issues that arise and need to be addressed, we have found the guidance released thus far to be clear and helpful to aid administrators.
In particular, we concur with the Department's decision to require mandatory administrative forbearance for borrowers who live or work in the designated disaster area. We believe that this approach is the most humane, as these borrowers—who may be the most severely impacted—may also have a seriously diminished ability to attend to loan repayment matters in light of other responsibilities related to the disaster. Further, we understand that borrowers who don't need this forbearance may continue making their repayments and therefore will not be penalized. And, we encourage schools or servicers to make this clear to borrowers.
We are aware that as a result of this forbearance, some institutions may experience reduced Perkins Loan collections that may negatively impact both their Perkins Loan revolving fund and their ability to make second semester disbursements. We strongly urge you to give priority consideration to these affected schools as you reallocate deobligated Perkins Loan funds.
Again, we appreciate your leadership during this difficult time and stand ready to assist your efforts in whatever way we can.
Sincerely,
Dallas Martin
President
Posted October 17, 2001, NASFAA Web Site www.nasfaa.org
Copyright 2001, National Association of Student Financial Aid Administrators
Redistribution to nonmember institutions is prohibited
Submit questions or comments to ask@nasfaa.org
