President Woodrow Wilson proclaimed Nov. 11, 1919 to be the first “Armistice Day” in honor of the day when the fighting ended in World War I. We celebrate this occasion as Veterans Day, a day in which we remember and thank our Armed Forces for all they do.
To show our gratitude, the Student Loan Ranger thought this was a perfect time to detail some student loan benefits for service members and veterans. We’ve previously highlighted many of these, so this year, we’re taking very liberal inspiration from the history lesson above.
Just as the armistice postponed fighting until the war officially ended, borrowers who are or have served in the military have the ability to postpone their federal student loan payments. They can do this with two specialized deferments. Here’s what you should know about these options.
[Check out the U.S. News Best Colleges for Veterans.]
Military Service Deferment
This option is for active-duty service members , who can defer their federal student loan payments while they actively serve in the Armed Forces or qualifying National Guard active duty. Service members can use this deferment the entire length of their active – duty service, as well as for up to 180 days after demobilization.
To apply for this deferment, a service member should complete the Military Service Deferment Request form and submit that and a copy of their military orders to their loan holder. If you’re not sure who holds your federal student loans, you can find out by visiting the National Student Loan Data System . Also, if you are unable to complete this form, you may have a representative do so on your behalf.
[Know when it’s OK to postpone student loan payments.]
Post-Active Duty Student Deferment
This option is for active-duty service members and veterans. You can take advantage of it if you are called to active-duty service while enrolled in college at least half time. You may also be eligible for this deferment if you were enrolled in college within six months of receiving your military orders.
This deferment allows you to postpone your federal student loan payments for up to 13 months after your active-duty service ends. That should give you enough time to re-enroll in college before your loans go into repayment, keeping your grace period intact for the next time you fall below half-time enrollment.
This application for this deferment is the same as linked above . Complete this form, confirm the name of the school where you were enrolled at least half time and the dates of your attendance and submit this and a copy of your military orders to your loan holder. Again, if you are unable to complete this form, you may have a representative do so on your behalf.
[Learn about additional federal service member student loan relief programs.]
Other Benefits
The options listed above are available to all eligible federal student loan borrowers. However, specific states offer additional deferment or repayment benefits as well. For instance, Arizona offers tuition and fees deferments if you applied for educational benefits under the federal GI Bill at Arizona state-supported colleges.
To see what options may be available where you live, check out The Military Smartbook For Defeating Student Debt. It captures these state-by-state options, as well as other federal benefits that can help service members, veterans, and their families manage the cost of a higher education.
Additionally, most active – duty military also receive protections and benefits from the Servicemembers Civil Relief Act , which requires student loans to have interest rates no higher than 6 percent, regardless of the terms and conditions of their promissory note.
Further, the U.S. Department of Education has released new regulations that make it easier for eligible borrowers to take advantage of the SCRA benefits by allowing loan holders to u se a database, called the Defense Manpower Data Center, to initiate and verify eligible active duty service for SCRA purposes.
More from U.S. News
3 Surprising Student Loan Repayment Facts
Federal Programs Give Student Loan Relief to Service Members
Follow 4 Tips to Stay on Top of an Income-Driven Repayment Plan
Student Loan Deferments Benefit Veterans, Service Members originally appeared on usnews.com
