Important Information for Veterans
Servicemembers Civil Relief Act (S.C.R.A.) 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.
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, servicemembers may qualify for Direct Loan forgiveness after 120 qualifying payments after October 1, 2007.
Deferments After Active Duty
Servicemembers can postpone their repayment before they return to school following their active duty.
Zero Percent Interest
While serving in hostile areas that qualify for special pay, servicemembers do not have to pay interest on Direct Loans made on or after October 1, 2008, for up to 60 months.
Income-Driven Repayment (I.D.R.)
Under I.D.R. plans, servicemembers may qualify for a low or zero payment amount, with the possibility of forgiveness on the remaining balance in the future.
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.
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.
Veterans Total and Permanent Disability Discharge
If servicemembers 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.