Heroes Act of 2003

The HEROES Act of 2003 Signed into law on Aug. 18, 2003, the Higher Education Relief Opportunities for Students (HEROES) Act of 2003 helps ensure that service members who are getting federal student aid do not suffer because of their military status. It also helps to reduce the administrative burden these individuals must carry.

How Does It Work?
Under the HEROES Act, the Secretary of the U.S. Department of Education can waive or modify provisions related to Title IV financial aid during wars, military operations or national emergencies. Originally, the waivers expired in September 2005, but a law was passed that extended the waivers until Sept. 30, 2007.

Who Is Affected?
You're affected if you're one of the following people, or are a spouse or dependent of one of them:

• Active-duty military personnel serving during a war, military operation or national emergency.
• A member of the National Guard performing an eligible duty during a war, military operation or national emergency.
  • For example, if you were called to serve in Iraq for more than 30 consecutive days, you would qualify.
• A person who lives or is employed in a disaster area.
• A person suffering economic hardship as a result of war, military operations or national emergency.
  • (This likely applies to many people displaced by Hurricane Katrina, which did so much damage to Mississippi and Louisiana in August 2005.)

Waivers
There are several types of waivers under the HEROES Act. Schools can substitute estimated award year income information for prior tax year information to estimate the expected family contribution. This means the financial aid administrator can consider changes in financial circumstances of you and your family that have occurred due to war, military operations or a national emergency. The requirement that financial aid administrators apply professional judgment on a case-by-case basis is waived for affected people and their dependents.

The administrators are able to choose the method of determining financial need that will be most beneficial for the affected people and their families. If a student withdraws from school because of one of these events, the HEROES Act waives the requirement under the "Return of Title IV Funds" clause that grant overpayments be repaid. If affected individuals are chosen for verification, there are other ways to satisfy the requirement that they provide a copy of U.S. income tax returns. Under Title IV, some requests, such as for a leave of absence, must be maid in writing.

The HEROES Act allows affected individuals to make these requests orally. Another option is to have a member of the borrower's family or another reliable source make the request. The Satisfactory Academic Progress (SAP) requirement can be waived, allowing affected individuals to put their education on hold. As long as the borrower is affected--up to three years--that time is excluded from the loan's grace period, qualifying the borrower for another full grace period after they complete the excluded period of service. In addition, the requirement that you make consecutive timely payments on your loan for rehabilitation or consolidation of a defaulted loan may change if you're affected by a war, military operation or emergency.

If you've defaulted on a loan, the HEROES Act might stop collection activities as long as you are affected by the war, military operation or emergency. Finally, some of the requirements for a parent's signature are waived if the parent is unable to sign because of their status as an affected individual. In this case, a guidance counselor or financial aid administrator can sign on behalf of the parent.

What Do You Need to Do?
Make sure you let the holder of your loan as well as your school know that you are affected. Be ready to provide proof of your status. Note that some members of the National Guard or Reserves who have been called to active duty have experienced some problems with their schools. If you have trouble, contact the Servicemembers Opportunity Colleges (SOC). The SOC is a consortium of higher education associations and more than 1,350 colleges that have agreed to intercede on the behalf of folks who run into trouble.

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