Notice of Modification to Certain Loan Program Regulations

The Secretary of Education, under authority of the Higher Education Relief Opportunities for Students Act of 2001, has published notice of modification to regulatory provisions in the various loan programs. The modifications apply to student borrowers in the Federal Perkins Loan Program, the Federal Direct Loan Program, and the Federal Family Education Loan Program who are members of the reserve components of the armed services and have been ordered to active duty for more than 30 days. Members of the active duty military who have been reassigned to a different duty station for more than 30 days as a result of military mobilization are also covered under this waiver. These waivers are in place to "assist affected individuals so that they are not placed in a worse position financially, in relation to their loans" due to active military service.

The waivers are effective as of May 14, 2003 and are as follows:
* Federal Perkins Loan Program - There is generally a 3-year cumulative limit on the length of forbearances that a Perkins loan borrower may receive. Any forbearance granted to a borrower for the approved military call-ups or reassignments is excluded from the 3-year cumulative limit.
* FFEL, Direct Loan, and Perkins Loan Programs ¿ Borrowers eligible for loan cancellation for employment in specified fields, such as law enforcement and teaching, are generally required to perform uninterrupted service of a specifies time length, such as five consecutive years. The Secretary is waiving the requirement that this time service must be consecutive and/or uninterrupted for borrowers affected by call-ups or reassignment of duty stations.

The full text of the notice of waiver is published in the Federal Register, Vol. 68, No. 93, page 25821 on May 14, 2003, and can be accessed through http://www.gpoaccess.gov/fr/index.html.

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