Student Debt Forgiveness Military: A Guide to Forgiveness and Relief

If you're a member of the military struggling with student loan debt, there's hope for forgiveness and relief. The Public Service Loan Forgiveness (PSLF) program can help, but it's not the only option.

The military offers a unique program called Military Student Loan Forgiveness, which can wipe out up to $65,000 of debt. This program is available to active-duty personnel, reservists, and veterans.

To qualify, you must have served at least 10 years, including 6 years of service in a "high-cost-of-living area" or 10 years of service in "low-to-moderate income" areas. This can be a game-changer for those who have dedicated their careers to serving their country.

Expand your knowledge: Knights Military Accomplishments

To be eligible for student debt forgiveness through the military, you'll need to meet certain requirements. The Army Loan Repayment Program (LRP) is one such program that offers up to $65,000 in student loan repayment assistance.

To qualify for the LRP, you must have non-prior service status, be a secondary school graduate, and disenroll from the Montgomery GI Bill. Your loans must also be incurred prior to entry on active duty and you must enlist for a three-year term in an MOS that offers the LRP.

The program is only available to active duty personnel, and you must request a deferment or forbearance on your loan from your lender. A deferment or forbearance is not automatic, but is subject to bank approval.

Here are the specific requirements for the Army Loan Repayment Program:

To qualify for the Active Duty Army Student Loan Repayment program, you'll need to meet the following criteria:

Note that private loans are not eligible for this program, and you'll need to have federal student loans, such as Direct loans, Federal Family Education Loans (FFELs), Perkins loans, or parent PLUS loans used for your education.

If you're a military service member or veteran, you may qualify for student loan forgiveness or discharge through various programs. There are three main loan military and veteran forgiveness and discharge programs.

Public Service Loan Forgiveness (PSLF) is one such program that forgives the remaining balance of your loans after you work for a qualifying non-profit or government agency for ten years and make 120 qualifying monthly payments. Any position in the U.S. armed forces counts as a qualifying employer, including Army linguists, Air Force pilots, and Navy Nurse Corps.

You might like: Military Time

To qualify for PSLF, your loans must be federal Direct Loans, including Direct Subsidized or Unsubsidized Loans or Grad PLUS Loans. Both veterans and active duty service members are eligible for PSLF, and the Department of Education allows months spent on active duty toward PSLF, even if your loans were in deferment or forbearance at the time.

Here are some examples of qualifying employers for PSLF:

The Servicemembers Civil Relief Act (SCRA) also provides debt relief for active duty members by capping student loan interest at 6.00%. This can save you money on your monthly payments and even cut a year from your repayment plan.

Public Service Loan Forgiveness (PSLF) is a program that forgives the remaining balance of your federal student loans after you work for a qualifying non-profit or government agency for ten years and make 120 qualifying monthly payments.

Any of the U.S. armed forces count as qualifying employers for PSLF, including Army linguists, Air Force pilots, and Navy Nurse Corps.

Both veterans and active duty service members are eligible for PSLF, and the Department of Education allows months spent on active duty toward PSLF, even if your loans were in deferment or forbearance at the time.

To qualify for PSLF, your loans must be federal Direct Loans, including Direct Subsidized or Unsubsidized Loans or Grad PLUS Loans.

Private student loans don't qualify for PSLF, so make sure your loans meet the eligibility criteria before applying.

Making 120 qualifying payments can be a long process, but it's worth it to have your federal student loan debt forgiven.

Here are the types of federal student loans that qualify for PSLF:

Remember, PSLF is only available to those who work for qualifying employers and make qualifying payments, so make sure you understand the requirements before applying.

If you're a military service member or veteran, you may qualify for student loan forgiveness or discharge. Forgiveness programs usually forgive your loans because of your service or employment, while discharge is usually based on your inability to repay your loans because of other issues.

There are three main loan military and veteran forgiveness and discharge programs. These programs are available to those who have completed their U.S. military service.

Military service members can defer their student loan payments until up to 13 months after active duty has ended. The government will also pay interest on select student loans during that time.

Readers also liked: Debt Consolidation for Military

Each branch of the military offers its own student loan repayment assistance program, with varying levels of funding and eligibility requirements.

The Air Force offers loan repayment assistance through the JAG LRP, which provides up to $65,000 in assistance to eligible service members. The Air Force College Loan Repayment Program also offers financial assistance to qualifying servicemembers, with benefits capping out at $65,000 in total loan forgiveness.

The Navy offers loan repayment assistance of up to $65,000 to sailors who serve for at least three years. The Coast Guard provides up to $10,000 per year in student loan repayment assistance, with a maximum of $30,000 available over three years.

If you've previously served in the Army Reserves, you can receive up to $50,000 in student loan repayment assistance by re-enlisting. This is a great opportunity to pay off your student loans and continue serving your country.

You may also qualify for a reenlistment bonus worth up to $20,000 due to your prior service. This is in addition to the loan repayment assistance, making it a very attractive option for those who have already served.

Army Reserve soldiers with prior military service can receive up to $50,000 toward student loan payments. You can request more information about the Student Loan Repayment Program (SLRP) and student loan forgiveness for veterans through the U.S. Army website.

The Army Reserves offer a Prior Service Soldier Loan Repayment Program that provides up to $50,000 in student loan repayment assistance to soldiers who re-enlist in the Army Reserves.

To qualify, you must have previously served in the Army Reserves and re-enlist for a specified length of time. You may also be eligible for a reenlistment bonus worth up to $20,000 due to your prior service.

The Air Force has a Judge Advocate General's Corps (JAG) Loan Repayment Program that provides up to $65,000 in loan repayment assistance to eligible service members.

This program is only available to those who join the Air Force Judge Advocate General's Corps and serves as a JAG officer. Payments are made over three years after the first year of service.

The Navy offers a student loan repayment program that provides up to $65,000 in loan repayment assistance to sailors who serve in the Navy for at least three years.

To qualify, you must have federal student loans acquired before your enlistment date and meet other service requirements. The Navy will repay 33.33% of your remaining loan balance or $1,500, whichever is higher.

The Coast Guard Loan Repayment Program provides up to $10,000 per year in student loan assistance to eligible employees.

You can participate in the program for up to three years and a maximum of $30,000 of loan assistance. To qualify, you must commit to at least three years of service in the Coast Guard.

The National Guard offers a student loan repayment program that provides up to $50,000 in military loan forgiveness to members who enlist for a minimum six-year term of service.

You can also qualify for the National Guard LRP, which will repay 15% of your outstanding principal balance or $1,500 per year, whichever is greater, for a maximum of $20,000.

Consider reading: National Debt Resolution

If you're serving on active duty in the military, you can defer your student loan payments until up to 13 months after active duty has ended.

The government will pay interest on select student loans during that time, which is a huge relief for those serving their country.

You can also limit your interest through the Servicemembers Civil Relief Act (SCRA), which caps student loan interest at 6.00% for active duty members.

This can save you a significant amount of money over the life of your loan – in one example, it can cut a full year off your repayment plan.

Deferment is also an option for those on active duty, allowing you to delay principal payments without accruing interest on subsidized loans.

However, interest will continue to accrue on deferred unsubsidized loans, so it's essential to use a student loan deferment calculator to estimate the accumulated interest.

Here are some key details to keep in mind:

By understanding these options, you can make informed decisions about managing your student loan debt while serving in the military.

To qualify for Public Service Loan Forgiveness (PSLF), you'll need to make 120 qualifying monthly payments while working for a qualifying non-profit or government agency, including the military. This can include positions like Army linguists, Air Force pilots, or Navy Nurse Corps.

You can apply for PSLF after 120 qualifying payments, which don't need to be consecutive. To do so, fill out and submit a PSLF application. You can also submit a copy of your orders to your loan servicer or request verification through an authorized military database if you're applying for SCRA.

Here's a summary of the steps to apply for PSLF:

Note that private student loans don't qualify for PSLF, and deferred payments typically don't count toward the 120 monthly payments, with a major exception being the Covid-related student loan repayment pause.

To apply for SCRA, you can submit a copy of your orders to your loan servicer. This is a straightforward way to get the process started.

You can also request verification through an authorized military database.

After you've made 120 qualifying payments over at least 10 years, you can apply for Public Service Loan Forgiveness (PSLF).

You can fill out and submit a PSLF application to receive loan forgiveness. This can be done after completing the required 120 payments, which don't need to be consecutive.

Note that months spent on active duty can count toward PSLF, even if your loans were in deferment or forbearance at the time.

Here's a step to keep in mind: months spent on active duty can count toward PSLF, even if your loans were in deferment or forbearance at the time.

To apply, you'll need to submit a PSLF application, which can be done after completing the required 120 payments.

Remember, your loans must be federal Direct Loans, including Direct Subsidized or Unsubsidized Loans or Grad PLUS Loans, to qualify for PSLF.

To apply for a TPD Discharge, you'll need to reach out to the Department of Veterans Affairs and U.S. Department of Education.

You should submit an application, along with documents on your TPD, to demonstrate how it's caused financial hardship.

To be eligible, you'll need to explain how your TPD prevents you from being employed.

The application process involves submitting documents and demonstrating financial hardship, so be prepared to provide supporting evidence.

If you're a disabled veteran, you may be eligible for a TPD Discharge, which can provide complete debt settlement for federal student loans.

You'll need to show that your injury caused total or permanent disability, and that you're not able to pay back your student loan balance.

If approved, a TPD Discharge can provide significant relief from student loan debt, so it's worth exploring this option if you're eligible.

Expand your knowledge: Student Financial Aid

If you're struggling to manage your student loan debt, there are several options to consider.

The Servicemembers Civil Relief Act (SCRA) can help limit your interest rate. This can be a big help for those with a lot of debt.

Deferment of student loans is also an option for those on active duty. This can give you a temporary break from making payments.

Income-driven repayment plans can lower your monthly payments. This can make it easier to manage your debt.

Refinancing your student loans for a lower interest rate is another option. This can save you money in the long run.

Here are some specific options to consider: