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US Government Takes Steps to Assist Education Financing

9/9/2005 - Washington, D.C. - The U.S. House of Representatives yesterday unanimously approved the Student Grant Hurricane and Disaster Relief Act (HR 3668) legislation that would allow students forced to withdraw from postsecondary institutions due to a natural disaster, to keep all of the federal grant aid received under Title IV of the Higher Education Act . This legislation expands on the authority established in the Pell Grant Hurricane and Disaster Relief Act (HR 3169), approved Wednesday, that would give the secretary of education authorization to waive a federal student-aid law that requires students who withdraw from college to return a portion of their Pell Grant funding.

This bill fulfills an urgent need to provide flexibility and assistance to students who have been forced to put their higher education on hold as a result of Katrina, said Rep. Bobby Jindal (R-LA), who authored the bill. Representatives Dale Kildee (D-MI) and George Miller ( D-CA) also introduced a bill (HR 3690) that would, among other things, allow impacted borrowers to defer repayment on student loans for up to six months without being charged interest or incurring penalties.

Senate-side hurricane relief efforts include yesterdays proposed Katrina Emergency Relief Act, introduced by Democratic leader Harry Reid and Senator Mary Landrieu. The legislation package offers emergency aid to allow the victims of Hurricane Katrina to obtain the health coverage, housing, education and financial assistance they need. In particular the bill would:

  • Provide Katrina survivors with health coverage through Medicaid wherever they reside; ease enrollment in state’s Medicaid programs and provide services without regard to assets or income; guarantee full Federal Funding for Medicaid for survivors in new states and directly-affected states

  • Provide emergency housing voucher for evacuees; expedite applications procedures so evacuees can find housing; provide time for survivors to find work before tenant contributions are required; identify Federal facilities to house victims

  • Award $2,500 in grants per student and other assistance to school districts receiving displaced students; provide temporary assistance to early education programs and agencies receiving displaced students

  • Allow victims a moratorium of 180 days on loan payments or obligations owed to the Federal Government; waive limitations on total assistance to individuals; provide mortgage or rental relief to victims to prevent foreclosure or eviction; ease bankruptcy laws for victims; extend and expand unemployment insurance.

    Other efforts yesterday included a roundtable discussion to focus the Federal government’s role in rebuilding the areas impacted by Hurricane Katrina. Coordinated by Senator Mike Enzi (R-WY), Chairman of the Senate HELP Committee, the discussion included representatives from service organizations, businesses and federal, state and local agencies that will play central roles in delivering relief to victims.

The White House yesterday announced new initiatives to provide relief to the victims of Hurricane Katrina, directing the Federal government to provide immediate financial assistance and streamline Federal benefits for evacuees. The initiatives include plans to provide $2,000 in immediate emergency disaster relief for every household affected, will grant special “evacuee” status to streamline and simplify enrollment processes in programs like Medicaid, Head Start and Food Stamps. Evacuees with internet access are encouraged to more information at www.govbenefits.gov.

In addition, the United States Postal Service has extended the distribution of Social Security checks at temporary, alternative locations. The latest information is available at www.usps.com.

Concerning taxes, victims of Hurricane Katrina will have until January 3, 2006 to file return, pay taxes or make any deposits due, according to the Internal Revenue Service.

Source: http://www.nchelp.org/elibrary/Briefing/2005/September2005/mb0909.pdf

 

 

 

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