Persons Affected by Military Mobilization Due to Recent Terrorist Attacks

    The U.S. Department of Education (ED) recently released a Dear Colleague Letter, GEN-01-13, providing guidance regarding the administration of the federal student financial aid programs as a result of the terrorist attacks on the United States.  GEN-01-13 deals with the treatment of students and borrowers who are members of the National Guard or Reserves and who have been ordered to active military duty as a result of the terrorist attacks.  ED intends to publish a fourth letter which will address other issues related to regulatory and administrative relief for those affected by the terrorist attacks, including the treatment of students who withdraw from school.

    On September 14, 2001, President Bush authorized the call-up of members of the National Guard and the Ready Reserves to active duty.  Regular active duty members of the Armed Forces may also be reassigned to other duty stations.   Since it is likely that there will be students and Title IV loan borrowers who will be ordered to military duty as part of this military mobilization, GEN-01-13 provides guidance to schools, lenders, and guaranty agencies regarding the treatment of military personnel who are who are activated or reassigned for a period of more than 30 days.  This letter addresses the following:

• Borrowers whose Title IV loans are in an in-school, in-school deferment, or grace period status;
• Borrowers whose Title IV loans are in repayment (other than in an in-school deferment status);
• Borrowers whose loans are in default status;
• Applicability of the Soldiers' and Sailors' Civil Relief Act of 1940;
• Institutional Charges and Refunds; and,
• Return of Title IV Funds Treatment.