Military Benefits

Interest rate on federal student loans you received before your military service is capped at 6% during periods of active duty.

MOHELA will proactively apply SCRA benefits for eligible borrowers confirmed in active duty status based on dates on the Official Department of Defense SCRA Website. In accordance with the Act, the borrower may waive the interest rate benefit at any time.

• For loans disbursed prior to active duty start date.

• For federal student loans, the earliest benefit effective date is August 14, 2008; active duty periods that fall on or after that date may qualify.

• If you consolidate your federal student loans after you begin active duty, your consolidation loan may not be eligible for the benefit.

• MOHELA will check an authorized military database, and if you are listed as being in active duty status we will automatically apply the benefit to your eligible loan(s).* If your military orders show an earlier active duty start date, you may submit a copy of your orders, and MOHELA will apply the benefit based on the earlier start date.

• You may also request the benefit by submitting a completed SCRA Interest Rate Request form, a completed Military Service and Post-Active Duty Student Deferment Request, or a copy of your orders.

You can postpone loan repayment during certain periods of active duty and immediately following active duty.

• For active duty military service during a war, other military operation, or national emergency.

• National Guard Servicemembers must be called to active duty by the President or the Secretary of Defense and paid for with federal funds.

• Assigned to a duty station other than your normal station.

• Periods of training or attending service school are not eligible for deferment.

• Completed Military Service and Post-Active Duty Student Deferment Request form with a certification from an authorized official in Section 4; or

• Completed deferment request form with a written statement from your commanding/personnel officer; or

• Completed deferment request form with a copy of your military orders; or

• If you cannot submit a deferment request form or other documentation, a verbal request from you or your representative. Deferment based on a verbal request is limited to an initial twelve-month period.

You can postpone repayment while you prepare to return to school following your active duty. Suspend payments after active duty military service and any applicable grace period until the earlier of (a) the date you resume enrollment at an eligible school on at least a half-time basis, or (b) 13 months following the completion of your active duty military service and any applicable grace period.

Following service during a war, other military operation, or national emergency.

• Military Service and Post-Active Duty Student Deferment Request form with a certification from an authorized official in Section 4; or

• Completed deferment request form with a written statement from your commanding/ personnel officer; or

• Completed deferment request form with a copy of your military orders.

You may qualify for forgiveness of the remaining balance of your Federal Direct Loans. Learn more at mohela.studentaid.gov/pslf.

• Federal Direct Loans only.

• Employed at least 30 hours per week on average at a qualifying government or nonprofit public service organization, including military service.

• Make 120 qualifying payments after October 1, 2007 while in a qualifying income-driven or 10-year standard repayment plan.

Submit an Employment Certification Form or Certification of Military Service to determine eligibility.

If a service member borrower has already submitted a PSLF form or Certification of Military Service and is on track for PSLF, they do not need to take any other action for these updates to occur to their account and payment counts towards PSLF.

If a service member borrower has Direct Loans and has never submitted a PSLF form before, we recommend they use the PSLF Help Tool  this link will open in a new window to complete the form and submit it to the PSLF servicer.

While you are serving in a hostile area that qualifies you for special pay, you do not have to pay interest for up to 60 months.

• Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans made on or after October 1, 2008.

• For a Direct Consolidation Loan, the portion of the loan that represents loans made on or after October 1, 2008.

• Proof of deployment in a hostile area, including:

• A completed Military Service and Post- Active Duty Student Deferment Request form with a certification from an authorized official certifying your service in an area of hostilities that qualifies you for special pay; or

• Military orders showing you’re serving in a hostile area; or

• A Leave and Earnings Statement showing you’re receiving hostile or imminent danger pay.

Repayment plans that base your monthly payment on your income and family size are available for federal student loans. Under these plans, you may qualify for a low or zero payment amount with the possibility of forgiveness of the remaining balance in 20 to 25 years.

Eligibility requirements vary depending on loan type and repayment plan. Contact MOHELA to determine your eligibility.

A completed Income-Driven Repayment Plan Request and documentation of income.

While you are on active duty, ED waives certain documentation requirements for federal student loans. For example, if you are on an income- driven repayment plan and military service prevents you from providing updated income and family size information, this documentation requirement will be waived and your current monthly payment amount will be maintained.

Active duty military service during a war, other military operation, or national emergency.

• Military orders.

• MOHELA may apply a waiver if they have information that you are actively serving in the military and qualify for the waiver.

In certain circumstances, as determined by the D.O.D., all or a portion of your federal student loans may be repaid by the D.O.D.

Varies based on branch of military.

Contact your designated Military Personnel Officer or representative for more information.

If you have a service- connected disability, you may qualify for discharge of your federal student loans. Discharge for 100% service-connected disability.

• Determination by the U.S. Department of Veterans Affairs (VA) that you are unemployable due to a service-connected disability; or

• Determination by the Social Security Administration (SSA) or a physician that you are unemployable due to a total and permanent disability
  

• To Apply:
  Call Nelnet at (888) 303-7818

For a VA service-connected disability:

• Total and Permanent Disability Discharge Application. You may need to provide additional documentation from the VA showing that you are unemployable due to a service-connected disability.

For a total and permanent disability unrelated to your service:

• Total and Permanent Disability Discharge Application and additional documentation from the SSA or your physician indicating that you have a total and permanent disability.

To view more information on supporting documentation requirements for Total and Permanent Disability Discharge, visit disabilitydischarge.com  this link will open in a new window.

Temporarily suspend payments while you are serving in an AmeriCorps position for which you received a national service award

AmeriCorps

Only AmeriCorps qualifies. To Apply: CNCS Request Form must be submitted

Temporarily suspend payments while military repays your loans.

Servicemembers in the Air Force, Army, Coast Guard, Marine Corps and Navy.

Submit the Mandatory Forbearance form with Section 4 completed by an authorized official.

Temporarily suspend payments during qualifying Active State duty or Full-time National Guard duty when you do not qualify for a military service deferment or other deferment; and you were activated no more than 6 months after the last date on which you were enrolled in school at least half time.

• During qualifying Active State duty or Full-time National Guard duty.

• When you do not qualify for a military service deferment or other deferment;

• Activated no more than 6 months after the last date on which you were enrolled in school at least half time.

• Armed Forces - Air Force, Army, Coast Guard, Marine Corps, Navy not applicable.

Submit National Guard Forbearance application with section 4 completed by authorized official, or orders.

Suspension of payment for loans with outstanding balance on/before July 1, 1993.

Loans with outstanding balance on/before July 1, 1993.

Submit an application with Section 4 completed, or orders.