Center for Global Education | Help for Students - Colleges and Universities Respond

United States Colleges and Universities
Help for Student Victims of Hurricanes

Financial issues:

1. Introduction

Your financial status may have changed as a result of hurricane Katrina. You may have questions surrounding your current loans and ability to repay them, or you may be considering taking students loans for the first time and looking for more sources of aid to help you continue your studies. If you attended a new institution as a result of being displaced, you may also have financial obligations to them that you must take care of. Whatever your situation, the resources below will assist you in getting your questions answered and in finding funding for your education.

2. Article-Owing money to your post-Katrina school

Some students will find that they owe money to the institutions which accepted them as visiting students after they were displaced by Katrina. According to one recent news article,

(Fender, J. LSU bills stun displaced students, 11/22/2005)

“Sorting out who pays what as university officials start closing the books on this interrupted semester could get complicated. Host colleges have focused on enrolling and finding room for displaced students, saying payment issues were secondary”.

At this time there are a myriad of issues that need to be dealt with around your finances and your financial aid. The links below are provided to help you identify sources of aid, direct you to what you need, and give direction to your application process.

3. Comprehensive resource: Campusrelief.org

In the aftermath of Hurricanes Katrina and Rita, a collection of institutions have created CampusRelief.org , a resource for institutions, students, faculty and staff to aid in the recovery from these natural disasters. The section for students includes links for both student financial assistance and resources, both school-specific and general from various foundations. The links include:

State-by-State Listing of Institutions Offering Assistance to Students - updated 10/19/05; 1:00pm ET ( .xls, 725 kb)
Latest News about Affected Schools
Testing Services (ACT, College Board, ETS) offer various accommodations to affected students-Providing links to various undergraduate and graduate testing services to obtain information about changes that have made to accommodate victims of Hurricanes Katrina and/or Rita.
Louisiana Board of Regents-Information for displaced students
Online Learning Opportunities from the Sloan Consortium-online courses available for students displaced by Katrina

4. Federal Sources of Aid with links

The Federal Government is the largest provider of student financial aid. Please read the information below for more information about various agencies and aid programs.

List of Frequently Asked Questions addresses those issues that are currently relevant for those affected by the hurricanes. While much of the information provided concerns damage to property, as a displaced student you will find relevant information that can assist you, such as a recent question added to the list:

How will FEMA handle payment for my personal property when the inspector has not been to my home? I cannot go to my home and the landlord plans to throw all my things away. NEW

Financial assistance to repair or replace damaged personal property is limited to items or services that help prevent or overcome a disaster-related hardship. FEMA will not pay to return or replace your personal property to its condition before the disaster. FEMA is making every effort to dispatch inspectors to verify damage. If you resided in an identified high-impact area (The Louisiana Parishes of Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany; the Mississippi counties of Hancock, Harrison, and Jackson) FEMA has alternate processes in place for determining damage even if the property remains inaccessible. Residents from these areas will be receiving an award letter in the next few weeks.

If you feel your tenant rights are being jeopardized FEMA advises that you contact your property owner and discuss your circumstances. If you are not able to reach an agreement with your property owner or property manager, free legal assistance may be available to you under FEMA’s Disaster Legal Services program by contacting the American Bar Association at (800) 310-7030.

The site also includes a section specifically for displaced students and financial aid and is found at the bottom of the page under ‘general questions’.

Individual Assistance Programs lists information about assistance for individuals and households, low interest loans, crisis counseling, free legal counseling, and other information that may be of help to you.

6. US Department of Education

The U.S. Department of Education is committed to assisting students enrolled in postsecondary education impacted by the recent hurricanes along the gulf coast. This page provides links to information they have posted to various web sites related to the impact of the hurricanes on students, parents, borrowers, colleges and universities. A very helpful section includes Frequently Asked Questions such as:

As a result of Hurricane Katrina, I am unable to locate the necessary information to complete my financial aid application. Can you provide assistance?
A. Contact the financial aid office at your current school (if your school is operating) or the financial aid office at your new school (if you plan to transfer) and they can assist you in completing your application.

The school I was attending is now non-operational due to Hurricane Katrina. If my previous school eventually does open for classes but I am unable to attend,, do I need to contact that school?
A. Contact your previous school and inform them that you are unable to attend. They will advise you on the next steps.

As a result of Hurricane Katrina, my financial condition has changed. Do I now qualify for additional federal financial aid?
A. Contact the financial aid office at your current school (if your school is operating) or the financial aid office at your new school (if you plan to transfer) to determine your eligibility for additional federal financial aid.

I did not originally file a Free Application for Federal Student Aid (FAFSA). However, due to Hurricane Katrina, my financial condition has now changed. Can I qualify for federal financial aid for this year?
A. You may be able to qualify for federal financial aid for this year. Contact the financial aid office at your current school (if your school is operating) or the financial aid office at your new school (if you plan to transfer) for assistance in determining your eligibility for federal financial aid and filling out the FAFSA.

I am filling out my 2005-2006 Free Application for Federal Student Aid (FAFSA) but don’t have access to tax information. Where can I get this information if my records were lost?
A. The tax information required for the FAFSA can be obtained directly from the Internal Revenue Service (IRS) through an expedited service created for those impacted by the hurricane. To obtain tax information over the phone, contact the IRS at (800) 829-1040, choose the "personal tax account" option, and follow their instructions.

In addition, participants can call the phone numbers listed below to ask questions not answered in the posted documents. Please check this page regularly for updates, as they will continue to post information as soon as it is available.

Students and parents can call 1-800-4FEDAID (1-800-433-3243) for general questions.
Borrowers who have questions about their Federal Direct Loan can call the Direct Loan Servicing Center at 1-800-848-0979.
Borrowers who have questions about their Federal Family Education Loan (FFEL) Program loan should contact their lender directly, or they can call 1-800-4FEDAID (1-800-433-3243).

7. Free Application for Federal Student Aid (FAFSA) site

Go to the official website for federal aid. Submit 2005-2006 FAFSA on the Web Applications by midnight Central Daylight time, June 30, 2006. File your FAFSA online at www.fafsa.ed.gov. You'll get a personal identification number that will allow you to keep track of your application. That way, you won't have to rely on the mail - an important benefit for families who don't have a permanent address.

8. Guide to applying for federal aid post-Katrina

Applying for federal aid requires that you provide documents such as tax returns and other official paperwork to support your application. What if your family lost all of these documents due to Katrina, or is having other difficulty with completing the application process? The following article which originally appeared in USA Today may provide you with some useful information:

(Block, S. Katrina may complicate financial aid, wkyc.com 11/16/2005)

Applying for college financial assistance is rarely easy. But for parents and high school seniors whose lives were upended by Hurricane Katrina, applying for aid will be particularly challenging next year.
Some families have lost important financial documents. Others will discover that the federal aid formula doesn't take into account dramatic changes in their finances.

Fortunately, college financial aid officials can consider extraordinary circumstances when considering aid applications, says Maureen McCarthy Mello, director of the Center for Affordability, a college consulting firm. "I know they will be taking a look at all the hurricane victims and using professional judgment in many of those cases," she says.

It's not too early to start preparing for the process. What families affected by Hurricane Katrina can do:

Start replacing financial documents lost in the storm. Ask former or current employers for copies of your W-2. Contact your bank, mortgage lender and financial adviser for copies of bank statements, loan information and investment records.
If your tax returns were lost, you can request a tax transcript from the IRS. A tax transcript shows most of the line items from your tax return. It's available at no cost by calling 800-829-1040 or mailing in Form 4506-T, which is available at www.irs.gov. You also can order a photocopy of your return by filling out Form 4506, Request for Copy of Tax Return. Ordinarily, a photocopy costs $39, but the IRS will waive the fee for victims of declared disasters.

It also will speed up processing for disaster victims. When you fill out the form for either a transcript or a photocopy, write the words "Hurricane Katrina" at the top of the form in red.

Most schools want to see your 2005 tax return, which isn't due until April 15, says Kalman Chany, author of "Paying for College Without Going Broke." But if you want to file your FAFSA before you complete your tax return, you can estimate your 2005 income and revise it later.

Understand how insurance payments can affect eligibility. When you fill out the FAFSA, you'll be asked to list the money in checking and savings accounts on the day you fill out the form, Chany says. A big check from your insurance company could reduce the amount of aid you receive. His recommendation: Try to put off filing your FAFSA until you've used the money to buy or repair a home. But don't wait too long. Some schools want your financial information by February. "I would stress not missing the deadline," Chany says.

Make sure college financial aid officials understand your situation. They have the discretion to consider special circumstances, such as a drop in your family's income after the hurricane, Chany says. The federal formula is "rigid, but schools can use professional judgment to override the formula," he says.

Start gathering now!

Documents you'll need to fill out the Free Application for Federal Student Aid after January first:

Student's driver’s license and Social Security card.
Student's income tax returns, W-2 forms and 1099 forms for the previous year.
Parents' tax returns, W-2 forms and 1099 forms for the previous year.
Current bank statements and mortgage information.
Records relating to stocks, bonds, mutual funds and other investments.
Documentation of non-taxable income, such as Social Security and Veterans Benefits.
Records relating to unusual family circumstances, such as death, divorce, unemployment or medical expenses not covered by insurance.

Source: Finaid.org

9. List of non-federal sources of aid and links

National Association of Student Financial Aid Administrators (NASFAA) is an association of over 3,000 colleges, universities, career schools, and others with an interest in the effective administration of student financial aid. The Association does not provide financial aid to students; please contact the financial aid administrator at the college of your choice for specific details on available financial aid opportunities. However, with this Web Site NASFAA provides information on the financial aid process and directs you to some of the more important and helpful financial aid guidance on the Web. They have also compiled the following list of Non-Federal Sources of Postsecondary Assistance for Hurricane Victims:

No matter what your financial situation, colleges and universities, the federal government, and private and public associations are here to assist you. We encourage you to work closely with the financial aid office at the institution you wish to attend next semester and beyond.