In light of the terrorist attacks that occurred last week, the nation's banks and the Education Department have announced plans to postpone or reduce required payments on federal college loans.

Banks will postpone or reduce payments on school loans until January 31, and borrowers who need an extension beyond that date may request such extension by writing to the bank that hosts the loan.

In addition, collections of default loans in the five boroughs of New York will be suspended until January. Borrowers in other locations may make a request of their banks to place collection proceedings on hold.

"It will take some time for people to return to their jobs and resume their lives," said Education Secretary Rod Paige. "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."

Loans affected by this announcement include Federal Family Education Loans, Federal Perkins Loan Programs, and the William D. Ford Federal Direct Loan. More information may be obtained by calling 800-433-3243.