MILLINOCKET – People having a hard time making their house payments as a result of Great Northern Paper Inc.’s 35-day shutdown may be eligible for assistance through Rural Development, formerly the Farmer’s Home Administration.

Officials of the federal agency will be in Millinocket at 1 p.m. Wednesday, Feb. 5, at the Stearns High School auditorium to discuss eligibility requirements for a moratorium on payments or a possible reduction in the interest rate for affected families.

Michael W. Aube, the state director of the federal agency, said Wednesday that Rural Development has 167 mortgages just in the three towns of Millinocket, East Millinocket and Medway. “That is 167 families that are directly impacted, but it could be even broader than that,” he said, referring to mortgage holders in other towns affected by GNP.

These mortgage holders will receive letters from the agency this week. If people don’t receive a letter, it doesn’t mean they are not eligible.

“Our goal is to make people feel comfortable knowing they have shelter and they don’t have to worry about that as they go through this transition,” said Aube.

GNP employees are receiving unemployment benefits of between $272 and $282 a week before taxes, but officials say those checks don’t go far after workers pay $181 a week for family health care insurance.

“That doesn’t buy much food or much of a mortgage payment, so what goes?” Aube said.

Aube said the federal agency can grant moratoriums on mortgage payments for a period of up to two years depending on the individual circumstance. Essentially, mortgage payments are deferred. “Hopefully, that is enough transition time for the mills to be up and running, the economy picks up, jobs are created and people get back on some payment schedule with us,” he said. “That gives people some breathing room.”

Aube urges mortgage holders not to let their payments go to the point of foreclosure, but to seek assistance from the agency. “We can grant moratoriums and it’s easier to do that now than later down the road,” he said. “If people have had a reduction in their income as the result of Great Northern or as the result of another event, they should come in and see us.”

Staff from the federal agency will assist mortgage holders in filling out the appropriate forms. Mortgage holders should bring a copy of an unemployment check stub, two of their most recent paycheck stubs, income tax return and forms that are being mailed to them this week.

“Everyone is coming to the table with little bits here and there to help sustain the communities and the people there,” said Aube.

For more information, call (800) 352-8963 or 990-3676, Ext. 4.