It’s not surprising that we’re facing a massive debt crisis for students. There’s an alarming $1.75 trillion of loans to students in the U.S. Additionally is that the number of student loan borrower within the U.S.
There’s a bright side If you’re part or the U.S. armed forces, you may be eligible under federal programs for student loan forgiveness as well as repayment programs. Here’s a look at the various student loan programs that may aid military personnel in easing their the burden of debt:
Government Loans Forgiveness
If you are employed by your government in the capacity of a service member, you may be eligible in the the Public Service Loan Forgiveness (PSLF). The way it works is When you make 120 monthly installments on an approved repayment plan working full-time for a company You could be eligible to have the rest of the balance on your student loan paid off.
Be aware that you’ll have to pay 120 monthly installments It will take at minimum 10 years before the loan are forgiven. In addition, only the payments that were made after October 1st in 2007 are eligible for PSLF.
While PSLF seems pretty cool, Robert Farrington, founder of The College Investor, explains that you’ll have to satisfy three main requirements including employment, loan type and the repayment plan type. But since you’re serving, your employment qualifies.
But, you must be sure you’ve got the right type of loan -direct loans and that you are with a income-driven repayment program.
This includes:
- The Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Updated pay as you earn (RePAYE)
- Income-Contingent Repayment (ICR)
“If you don’t take the time to check the two other things it is possible that you think you’re eligible and then find out that you aren’t, years later.” Farrington says. Farrington.
National Defense Student Loan Discharge
Military personnel working in a region that is eligible in Hostile fire pay (HFP) (also known as Imminent Danger Payment) (IDP) might be qualified to receive full or complete debt forgiveness for student loans.
- Forgiveness is only available up to Federal Perkins Loans
- You must have completed a complete calendar year on active duty (12 consecutively for 12 months) to be eligible
To be eligible for the complete cancellation of any applicable loans, you have to finish five year of active service. You may be eligible for partial forgiveness after serving at least one full year on active duty.
- 15% of the loan principal in the initial loan in the very first as well as the second years of service
- 20 20% forgiveness on the original principle of the loan for third and forth year of service
- 30 percent of forgiveness on the original credit principal in the fourth year following the completion of five years of service.
You may also be eligible for reimbursement for any interest earned during the time during your military career.
HEROES Act, 2003
If you’re in the military and were appointed by the Secretary of Defense for more than 30 consecutive days, then you may qualify for financial aid under law known as the higher education relief opportunities for students (HEROES) Act of 2003.
The law permits for the Secretary of Education waive specific obligations for federal financial aid to students in times of stress, such as emergencies or combat operations. This isn’t a program you can be able to apply for, but instead relief is provided to affected borrowers when it is deemed appropriate from the secretary of Education.
Student Programs to Repay Loans
If you’re already as a military member, the Public Service Loan Repayment is the most suitable alternative, according to Farrington. “But should you be contemplating joining or you’re preparing to re-enlist due, some branches can also provide aid with repayment of student loans. This could be a fantastic benefit for something you’re considering.”
As per The College Investor, the requirements for repaying student loans differ in each case, but generally you’ll have to be in active for a specific amount of time, achieve an acceptable rating in the Armed Services Vocational Aptitude Battery (ASVAB) and include student loan repayment on your enlistment agreement.
Here’s a rundown of the student loan repayment programs available to military personnel:
AFC College Loan Repayment Program
If you’re a member of the USAF Judge Advocate General (JAG), under the student loan Repayment Program ( JA-SLRP) You can make an application for up to 65,000 towards student loan repayment. repayments made directly to the lender over three years.
In addition, you may be eligible for PSLF and the income-based loan repayment programs. Loan repayments start at the end of your first year as JAG JAG. You can put the money towards the law schools, undergrad as well as graduate courses.
Military College Loan Repayment Program
The repayment program is only open to all who are currently serving within military service in the Army. Military members who are active can be eligible for loan repayments following an entire year in active service. What exactly are we discussing here? You could earn up to $1,500 or one-third of your remaining balance every year for an overall period of three years, which is higher.
National Guard Student Loan Repayment Program
If you’re a soldier , or an officer candidate for within the National Guard, you may be eligible to have as much as $50,000 in loan repayments to be paid off. For you to qualify, loans must be registered with the Department of Education National Student Loan Data System (NSLDS). If you’re a holder of PLUS loans that are only for personal use are acceptable. However, private and state loans aren’t able to be repaid under this specific program.
Navy Student Loan Repayment Program
In the Navy Student Loan Repayment Program You can receive up to $65,000 of student loan repayments in the initial three years of becoming an sailors. This program is only open to those who are in this delayed entry plan that are Active Duty sailors.
Army Active Duty Health Professions Student Loan Repayment Program
If you’re an healthcare professional who is working in the U.S. Army, you may have the opportunity to receive a substantial loan to repay. If you’re as part of the Dental Corps, you can receive up to $40,000 per year for three years as high as $120,000.
Are you in the Medical Corps? You can receive as much as $120,000 in three years, or up to $75,000 when you’re part of the Medical Corps Reserve. Additionally, you can get student loan repayments when you’re part in the Allied Health Corps, Nurse Corps and Veterinary Corps.
Have questions regarding student loan repayment plans for various divisions of the army? Contact the Human Resources departments of the repayment programs. You’ll need to confirm that you meet the requirements for eligibility prior to applying.
