January 21, 2000
Education Dept. Asks Congress to Review Policy on Loan Forbearance
The Education Department's Inspector General has asked Congress to revisit federal measures designed to help borrowers avoid defaulting on their loans.
As part of its revisions to the Higher Education Act in 1998, Congress eliminated a requirement that borrowers who request forbearances on their loans do so in writing. Forbearance allows borrowers to stop paying back their loans for a period of time without being penalized.
In a report to Congress last