Financial Information Guide for Veterans
Deferments After Active Duty
Servicemembers can postpone their repayment before they return to school following their active duty.
Department of Defense (DoD) Repayment of Loans
In certain circumstances, as determined by the Department of Defense, some or all loans may be repaid by the Department of Defense.
HEROES Act Waiver
While on active duty, the Department of Education waives many documentation requirements attached to program benefits, such as I.D.R.. For example, if a service member is unable to provide information on family size and income, their I.D.R. monthly payment amount will be maintained.
Income-Driven Repayment (IDR)
Under I.D.R. plans, service members may qualify for a low or zero payment amount, with the possibility of forgiveness on the remaining balance in the future.
Military Service Deferment
Servicemembers can postpone their repayment while serving in active duty or qualifying duty in the National Guard during a war, other military operations, or national emergency.
Public Service Loan Forgiveness
While serving, service members may qualify for Direct Loan forgiveness after 120 qualifying payments after October 1, 2007.
Servicemembers Civil Relief Act (SCRA) Interest Rate Cap
Interest on federal student loans obtained prior to military service is limited to six percent during periods of active duty (also applies to private education loans). Late and NSF fees may be waived as part of the S.C.R.A. as well.
Veteran's Total and Permanent Disability Discharge
If service members have a service-connected disability, they may qualify for discharge of their federal student loans.
*Additional benefits may be available for Perkins Loans. Servicemembers should contact their school for details.
Zero Percent Interest
While serving in hostile areas that qualify for special pay, service members do not have to pay interest on Direct Loans made on or after October 1, 2008, for up to 60 months.