Education Department allows victims to postpone school loans

Individuals affected by last week's terrorist attacks will be able to postpone or reduce payments on federal college loans under an agreement between banks and the Education Department, the Associated Press said. "It will take some time for people to return to their jobs and resume their lives," Education Secretary Paige said Wednesday. "It is my sincere hope that the department's efforts will help ease the strain on those who have suffered so much and help them get back to business." The department has told banks to postpone or reduce payments until Jan. 31. Borrowers who need an extension may request it in writing. Loan default collections for borrowers in the five boroughs of New York City also will be automatically put on hold until January, Paige said.
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