Reservists Called to Active Duty

As part of the military mobilization in the Persian Gulf area, members of the National Guard and Ready Reserve have been called to active duty and active duty members of the Armed Forces have been reassigned to other duty stations.

The Department of Education issued Dear Colleague Letter GEN-03-06 dated March 2003 which provides guidelines in regards to relief for students and borrowers of Perkins loans effected by the military mobilization. We are applying these same guidelines to our Institutional, Health Professions, and Nursing Loans. The guidelines are:

THE STUDENT LOAN REPAYMENT RELIEF APPLIES TO: a borrower who is a member of the National Guard or Ready Reserves and is activated for a period of more than 30 days OR is a regular active duty member and is reassigned to another duty station for a period of more than 30 days.

For a borrower whose loan is in an in-school status, in-school deferment, or grace period status when the borrower is ordered to active duty or reassigned, we are authorized to maintain the loan in that status during the period of the borrower's active duty service, PLUS the time necessary for the borrower to resume enrollment in the next regular enrollment period that is reasonably available to the borrower, if the borrower wishes to return to school. HOWEVER, this maintenance of the loan status may not exceed a total of 3 years including the time period necessary for the borrower to resume enrollment. Additionally, if the loan was in a grace period status at the time the borrower was ordered to active duty, the period of time during which the borrower served on active duty is excluded and the borrower would receive their FULL grace period in the future.

For a borrower whose loan is in repayment (other than in-school deferment), we are authorized to grant a forbearance for one year, beginning on the first day of active duty, based soley on a request from the borrower, borrower's family, or another reliable source. We are also authorized to grant forbearance during the entire period of the borrower's active duty service, however; forbearance periods past the first year will require supporting documentation and a written agreement with the borrower. Interest does accrue during periods of forbearance. Unlike FFEL or Direct Loans, accrued interest on Perkins loans (as well as Institutional, Health Profession and Nursing) cannot be capitilized and must be paid at the end of the forbearance period.

If you were called to active duty and have a loan owed to the University of Missouri-Columbia Student Loan Collections Office you are encouraged to contact our office as soon as possible. The Perkins 01, 02, 05, and 10 loans have a deferment for active military duty. All types of Perkins Loans have a partial cancellation provision IF you are serving in an area of hostility that qualifies for special pay under Section 310 of Title 37 of the U.S. Code and you must be serving in this area for at least 1 year. Even if you do not qualify for deferment or cancellation, you should qualify for forbearance as outlined above. If your loan is in default status, we are required to cease collection activities for the expected period of your military service, however, we must be notified that you were called to active duty or reassigned.

If you are attending school at UMC and are called to active duty, please contact our Registrar's Office at: Registrars, 130 Jesse, University of Missouri-Columbia, Columbia, MO 65211-1020 or phone at 573-882-7881 for withdrawal procedures.