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Government creates fund for students, schools affected by attacks

WASHINGTON (CNN) -- Students and schools directly affected by last week's terrorist attacks in New York and Washington will get millions of dollars in help from the U.S. Department of Education.

Schools in New York City will receive $4 million, according to Education Secretary Rodney Paige. New Jersey schools will receive $1.5 million, with $500,000 going to schools in Maryland. Funds for other parts of New York and Connecticut are expected.

The money can be used to provide counseling for students and teachers, hire substitute educators, add to security, clean damaged schools, retain experts in long-term crisis planning, rent space or transport students if needed, Paige said.

Financial relief also will be granted to college graduates with outstanding educational loans who were affected by the attacks, Paige announced this week.

Lenders will postpone or reduce the amount of monthly payments from September 11, the day of the attacks, through January 31, 2002, he said. The change will affect borrowers whose financial circumstances changed because of the attacks, Paige said.

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