Every month, HESC’s “Question and Answer” web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s winning question is:

If a borrower’s FFELP loan is in default, do they have to continue making payments if they are called to active military duty in the Reserves?

Based on the Higher Education Relief Opportunities for Students (HEROES) Act of 2003, the provisions that require collection activities by loan holders on defaulted Title IV loans are waived while a borrower is on active duty service in the Reserves in connection with a war or other military operation, or a national emergency.
Some members of other U.S. Armed Forces serving on active duty and persons residing in areas that are declared a disaster area, considered “affected individuals”, may also be eligible for certain waivers to provisions applicable to the Title IV federal student aid programs. Contact HESC if you would like additional information on the waivers and modifications in the HEROES Act.

Direct questions regarding this guidance to the Office of Counsel and Regulatory Compliance at 518- 473-3986 or toll-free at 1-866-431-HESC (1-866-431-4372), press 6, or via e-mail at askpolicy@hesc.org