BUREAU OF HEALTH PROFESSIONS
Date: September 12, 2005
To: Schools Participating in the Health Professions and Nursing Student Financial Assistance Programs
Subject: Hurricane Katrina Disaster Relief for Participants in the Student Loan Programs Authorized Under Titles VII and VIII of the Public Health Service Act
Campus-Based Policy Memorandum 2005-2
As a result of Hurricane Katrina, certain counties or parishes in the States of Louisiana,
Mississippi, Alabama, and Florida have been designated as eligible for national disaster
assistance by FEMA or the State Governor. This memorandum provides guidance
regarding special policies and procedures for administering the Federal student aid
programs authorized under Titles VII and VIII of the Public Health Service Act as a result
of Hurricane Katrina. This includes the Primary Care Loan (PCL), Health Professions
Student Loan (HPSL), Loans for Disadvantaged Students (LDS), and Nursing Student
Loan (NSL) programs.
Forbearance for borrowers who reside or work in the designated disaster area:
The Department of Health and Human Services is authorizing schools to grant forbearance
to PCL, HPSL, LDS, and NSL borrowers who reside or, if known, work in Louisiana,
Mississippi, Alabama, or Florida and have been adversely impacted by Hurricane Katrina.
Due to the unusual circumstances, the granting of forbearance to these borrowers will not
require either a request or documentation from the borrower. This period of forbearance is
effective from August 29, 2005 through February 28, 2006, or for a time period set at the
discretion of the school. Adversely impacted borrowers must be notified by the school
that forbearance has been granted to them. These borrowers may request a resumption
of normal billing and repayment as soon as possible.
Forbearance for other borrowers: Based upon the request of the borrower, the borrowers
family, or another reliable source, PCL, HPSL, LDS, and NSL borrowers who have been
adversely impacted by Hurricane Katrina, other than those who reside or work in the affected
States, should be granted forbearance for the period of August 29, 2005 through February 28,
2006 or for a time period set at the discretion of the school. The request for forbearance
need not be in writing, but the reasons for granting forbearance should be documented in the
borrowers loan records.
Defaulted borrowers: The Department is authorizing schools, without a request from the
borrower, to discontinue collection activities from August 29, 2005 through February 28,
2006 for defaulted PCL, HPSL, LDS, and NSL borrowers who reside or, if known, work in the
affected States. For other defaulted PCL, HPSL, LDS, and NSL borrowers who have been
impacted by the disaster, schools may upon the request of the borrower, discontinue
collection activities for a period that ends no later than February 28, 2006 or for a time period
set at the discretion of the school. The request need not be in writing, but the reasons for
discontinuing collection activities should be documented in the defaulted borrowers loan
records.
Eligibility for death cancellation: The Department is authorizing schools to use reliable
documentation of a PCL, HPSL, LDS, or NSL borrowers death, due to Hurricane Katrina, to
suspend collection activities, without contacting the borrowers family, during the period
necessary to process a death cancellation. Reliable documentation may include, but is not
limited to, obituary notices and/or published listings of the dead provided by a Federal, State,
or local government entity. Schools are encouraged, at a later date, to obtain a certified copy
of the death certificate if one is available through alternative sources without contacting the
borrowers family.
Due to disruptions in mail and other communications throughout the affected States, the
Department will, for the period of August 29, 2005 through February 28, 2006, not enforce
time sensitive deadlines that schools normally are required to comply with in their due
diligence activities.
PCL School Reporting Requirements
For PCL schools adversely impacted and located in Louisiana, Mississippi, Alabama, or Florida
the PCL assessment notice, which normally is mailed out by the Department at the end of
September, will be delayed. For these schools only, the school deadline for submitting the PCL
assessment amount to the Department will be extended. Other schools whose PCL collections
are affected by Hurricane Katrina, for example, a large number of borrowers located in the
adversely impacted States, may contact the Department to request a similar extension on the
deadline for submitting the assessment amount.
Questions regarding this policy memorandum should be directed to the Campus Based Branch
at 301-443-4776; ask to speak to someone on the loan team.
Thank you for your assistance in administering the Title VII and VIII loan programs in a manner
that demonstrates compassion and concern for affected borrowers and their families during this
difficult time.
Henry Lopez, Jr.
Director
Division of Health Careers Diversity and Development
Posted September 13, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
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