University of Virginia Library

HEW Eases Student Loan Rules
For Hurricane Camille Victims

An emergency amendment to
the Federal guaranteed student loan
program designed to assist families
suffering losses from Hurricane
Camille was announced by
Secretary Robert H. Finch of the
Department of Health, Education
and Welfare.

Interest payments on student
loans were assumed by the Federal
government under the old
regulations, if the student's
adjusted family income totaled less
than $15,000 in the tax year before
the loan is made.

Lenders in disaster areas, the
new amendment requires, are to
figure adjusted family income on
the basis of a 1969 estimate,
considering reductions for losses
suffered from the hurricane. Mr.
Finch's amendment covers loans in
Camille disaster areas since July 1
and continues in effect until July 1,
1970.

Adjusted family income is
calculated by adding 90 per cent of
the adjusted gross taxable income
of the student taking out the loan,
his spouse and his parents, and
subtracting the total amount in
personal exemptions allowed to all
of these individuals.

Disaster areas in four states are
covered by the new amendment.
Counties in Virginia that are eligible
include Albemarle, Allegheny,
Amherst, Augusta, Bath,
Buckingham, Chesterfield, Caroline,
Cumberland, Fluvanna, Goochland,
Hanover, Henrico, Louisa, Nelson,
Powhatan, and Rock bridge.

In addition to liberalized
student loan requirements, HEW
also announced that elementary
and secondary schools in the
Central Virginia area were eligible
for assistance now estimated to
total $249,000. The figure was
announced after a HEW on-site
survey of flood damage to schools.

Damage to buildings, physical
equipment and supplies as well as
debris removal costs are considered
eligible for federal assistance.

The Scottsville Elementary
School in Albemarle County
suffered $97,000 in physical
damage while damage in Nelson
County schools is estimated to be
$112,820.

Officials at Clifton Forge
estimated school playground
equipment damage to be $2,500.
However the playground is on a
city-owned lot, and HEW officials
still must determine whether
federal law entitles the site for
assistance.

Not included in the estimates of
damage, is the significant material
loss of the tax revenue which is a
predicted result of the disastrous
flooding.