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Hurricane Katrina: Legal Issues - Columbus School of Law

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should contact the state Department <strong>of</strong> Education for placement assistance.<br />

What requirements apply to higher education students?<br />

Most requirements, such as residency and time <strong>of</strong> enrollment, have been waived for at least the fall semester.<br />

Arrangements will vary with the institution. University students should contact the school they wish to attend for<br />

further details. The Department <strong>of</strong> Education is also <strong>of</strong>fering special treatments for student loans for hurricane<br />

victims. For more information on loan forgiveness and other programs, see http://hurricanehelpforschools.gov. For<br />

specific information concerning waiver <strong>of</strong> tuition at new schools or whether students can get refunds from their nowclosed<br />

schools, individuals should contact their individual educational institutions.<br />

Student Loans<br />

How will <strong>Katrina</strong> affect my student loan situation?<br />

Sallie Mae is <strong>of</strong>fering an interest-free loan <strong>of</strong> up to $1,000.00 (through June 1, 2006) to all displaced students<br />

affected by the hurricane.<br />

All students that applied for a Sallie Mae Loan during the 2005/2006 academic year and were enrolled in a<br />

certain group <strong>of</strong> schools in Louisiana and Mississippi are eligible for this <strong>of</strong>fer.<br />

The schools that apply are listed at www.salliemae.com/katrina/index.html.<br />

Students must either call 1-877-HELP-040 (1-877-435-7040) or e-mail Sallie Mae at<br />

requesthelp@salliemae.com to begin the application process.<br />

What if Sallie Mae is not the financial aid service I use?<br />

The National Association <strong>of</strong> Student Financial Aid Administrators (NASFAA) has an entire section <strong>of</strong> their<br />

web page devoted to students with loans or financial aid in the affected areas.<br />

Some nationally known Federal Stafford and Parent loan lenders are <strong>of</strong>fering assistance to students affected by<br />

<strong>Hurricane</strong> <strong>Katrina</strong>.<br />

For example, Student Loan Express and CIT Group, Inc. have combined services. You can contact these<br />

services by calling 1-866-SLX-PRES or visiting www.studentloanxpress.com.<br />

Additionally, USA Funds, a nationally known education-loan guarantor, has donated $1 million to help low<br />

income students that have been displaced by the hurricane in Alabama, Florida, Louisiana, and Mississippi.<br />

For information regarding this service, please visit www.disasterrelief.scholarshipamerica.org.<br />

What if my school has been closed because <strong>of</strong> <strong>Hurricane</strong> <strong>Katrina</strong> and I have already received Pell Grants or<br />

other forms <strong>of</strong> Federal student grant assistance or loans?<br />

Two bills have recently been passed by the U.S. House <strong>of</strong> Representatives that address this topic.<br />

One bill (HR 3169) allows displaced students to keep Pell Grants that were received through their Home<br />

Institution.<br />

Another bill (HR 3668) amended the Higher Education Act <strong>of</strong> 1965 to allow displaced students to keep all<br />

federal-grant aid for this fall.<br />

Under both bills, the education Secretary must grant a waiver for all students that do apply for the grants.<br />

Specific programs that specifically cooperating with these bills are: the Supplemental Educational Opportunity<br />

Grant program, the Leveraging Educational Assistance Partnerships program, and scholarships from Gear Up<br />

and TRIO.<br />

Also, legislation is pending about whether displaced students could defer payments for educational loans for<br />

up to six months without being charged any interest or other penalties for late payments.<br />

Currently, the law does allow borrowers affected by a natural disaster to apply for a three-month forbearance<br />

on the loans. However, interest will still accrue.

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