Military Student Loan Benefits

There are a number of military loan benefits one can avail. Here is a deep dive on some of these benefits, learn some useful tips which can be used by an active duty army personnel

Updated by Priya Shah on 26th December 2019

Student loan debt is a pervasive problem for not only the student but as all to the society also. So for the debt, we have benefits like repayment and forgiveness. A military student loan is basically the variety of benefits given to the members of armed forces, which helps them to repay the amount of debt and loan they have, in order to get rid of the student loan faster. 

Among all the benefits of military student loans like repayment and forgiveness, I will be talking on some benefit plans as in detail. Do check if you want to get detail info about the benefits of military student loan option:

Table of contents

Available Student loan benefits for members of the armed forces

If you are a student loan borrower and are currently serving in the armed forces then here are some benefits you can avail -

Servicemembers civil relief act interest rate

In this service member of the armed forces benefit the interest on a student loan is taken prior to your military service and caped @ 6% during the period of active duty or on duty. For this student loan, the servicer will proactively check an authorized military database for your activeness and leaves. if you are listed to active duty member you will automatically be eligible for the loan and can apply for the benefits. You can initiate the benefits by submitting a copy of the orders, that indicate the different active duty report. 


  • Federal and private student loan

  • Disbursed prior is basically to the active duty start date. 

  • The consolidation of the loan after the active-duty start date, that may not be eligible for the benefits.

Military service deferment

The loan that is taken can be postponed during certain periods of active duty and immediately following active duty. The one should have completed military service and post-active-duty student deferment request form.

Or written statement from commanding along with borrowers section of deferment form. There must be a verbal request from you and your representative for clarification if the documentation cannot be submitted for the initial stage of the first twelvemonth.


  • Federal and some private loans.

  • As same it only offered for active-duty military service during a war, other military services during the war, or other military operations. 

  • Specially assigned to duty stations other than normal stations. 

  • The eligibility for deferment is not taken for the period of training or attending service school.

Deferments after active duty

According to deferments after active duty, we can postpone our repayment while we prepare to return to school during the active duty. The basic requirement is the military service and post-active duty student deferment request form that is to be submitted along with the borrower section of the deferment request form and a copy of the military orders. 


  • Federal and some private student loans

  • Other military service or national emergency service during the war

Public service loan forgiveness

After certain payments i.e 120 payments, you may qualify for forgiveness for the remaining balance of your federal student loan. The basic requirement for the public service loan forgiveness is the submission of an employee certification form in order to check the eligibility.


  • Federal student loan only.

  • Successful 120 on-time payments in a qualifying income-driven or 10 years of the standard repayment plan.  

0% interest

This 0% benefit applies to only those who work for the hostile area and are qualifies for those special pays, where you do not have to pay interest up to the next 60 months. They have certain requirements like they have to give proof of deployment in a hostile area, which includes a certifying official’s statements and signature. As well as military orders showing your service in a hostile area, that may include leave and earnings statement showing you are receiving hostile or imminent danger pay.


  • The federal loan must be made on and after October 1, 2008. 

  • Some part of the direct consolidation loan is that represents loans made on or after October 1, 2008. 

Income-driven repayment plan

Income-driven repayment is those plans that are based on your monthly payments on your income available for federal student loans. This plan has certain eligibility that is considered, under this plan you may qualify for the zero or very low payment amount with the possibility of forgiveness of the amount leftover. The requirement for the income-driven repayment plan is just the plan request form and documentation of income.  


  • It is based on your income and the different types of loans the time period of the loan. In order to check the eligibility contact the loan servicer.  

  • A private loan is not fit and eligible for this plan, contact loan servicer to avail more options. 

HEROES Act waiver

While on active duty, ED waives many of the required documents are attached to the loan benefit of federal students. If you are up to an income-driven repayment plan and military service that helps getting you updated information according to the family size and requirements. The requirement for HEROES Act waiver are military orders and student loan servicer will definitely proactively apply for a waiver if he/she has the proper information that you have actively been serving in the military and the most probability of qualifying for the waiver. 


Active duty on military service during the war, or other operations

Department of Defense (dod) repayment of your loans

According to some circumstances determined by DOD some portions of the student loans are payable (repaid by the DOD). The requirement for the department of defense repayment of the loans is you need to contact your designated military personnel officer or representative for applications.   


Varies on the branch of the military,   

Veterans Total and permanent disability discharge

these benefits are specially for those who are servicing for the disable people and connected to disability, then chances of qualifying for the student loan may increase. The requirement for this benefit are documentation from u.s. Department of veterans that varify the service-connected to the disability. And the total and permanent disability request form. 


Federal and some private student loan. 

Helpful tips for active duty in order to get benefits

Grant power to them whom you can trust to manage your financial matters, who will act on your behalf. Who can be given as the person to the servicer you approve to receive the related information regarding loan. 

Create an account on your loan servicer website, where you are allowed to view information about the student loans and the payments online.
The phone number that you are providing must be the updated or current one so that the servicer than contact you frequently, as per the need. 
Always try making interest payments, if you have deferment also. That will stick your balance from increasing and could save some money in the long run. 

The repayment plan is based on your income so always try to review your repayment plans.  Which may qualify for the low payment and loan forgiveness. 
Go for auto-payment options mode to reduce the default of loans. 
Alarm an active duty alert on your credit report to reduce the risk. And that will verify the identity before issuing credit. 

Worried about your college tuition? Learn more about student loans

Useful student loan resources

Federal student aid: most of the government and non-profitable organization offers money for college veterans, military personnel, active-duty personnel, and other resources.  So if you have a federal loan you can learn about the options in order to pay the loans. For more info-

National student loan data system(NSLDS)

in order to find the servicer of your federal loan with a national student loan data system. For more info-

DOD and VA military information programs: Benefits and paying for the college loan includes any information that -
Servicemembers civil relief act (SCRA): for more info-
Veterans disabilty discharge program: for further info -