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DCLPublicationDate: 8/6/98 DCLID: Disaster Letter-98-83 AwardYear: Summary: Flooding in New Jersey August 6, 1998 Disaster Letter 98 - 83: Flooding in New Jersey. Dear Guaranty Agency Director: We have learned that the Federal Emergency Management Agency has designated Ocean county in New Jersey as a disaster area that qualifies for federal assistance under FEMA’s "Individual Assistance" program because of flooding that began February 4. Our most recent notice to you about the flooding in New Jersey was "Disaster Letter 98-17," dated March 4. At that time, Atlantic and Cape May counties had been designated. Guaranty agencies and lenders are authorized to use the Department’s disaster-related forbearance policies to assist FFEL borrowers who are residents of Atlantic, Cape May, or Ocean counties. 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. Lenders and guaranty agencies may contact 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 for further updates. This letter has also been sent to each regional office of the Department, plus the National Council of Higher Education Loan Programs, Inc., the Consumer Bankers Association, the National Association of Student Financial Aid Administrators, and the Student Loan Servicing Alliance. Sincerely, Patricia Newcombe Chief, Policy Section Federal Family Education Loan Program Policy Development Division Student Financial Assistance Programs |
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