Military Student Loan Forgiveness

Millions of Americans are burdened with student loan debt, including active members of the military and veterans. Fortunately, there are ways to reduce or eliminate your student loan debt if you join the military. In this guide, we’ll discuss military student loan forgiveness options, repayment assistance programs, and a few other ways that military members can manage their loan debt. 

Also see: Guide to student loan forgiveness plans

Military Student Loan Forgiveness and Discharge Programs

When your loan is forgiven, canceled, or discharged, this means that you are no longer required to repay some or all of your loan. There are several student loan forgiveness and discharge programs set up for military members. Below we’ve listed a few options that can help you get your loans partially or completely forgiven. 

Public Service Loan Forgiveness

One of the most popular loan forgiveness programs is the Public Service Loan Forgiveness. The program offers loan forgiveness to full-time government employees, which includes members of the U.S. military. The program forgives all student loan debt after the borrower makes 120 qualifying payments under an income-driven repayment plan. 

Disabled Veterans 

Disabled veterans can qualify for student loan forgiveness through the Veterans Total and Permanent Disability Discharge. To be eligible, you must have a permanent service-related disability documented by the Department of Veterans Affairs. Most loans are eligible for forgiveness, including Federal Perkins Loans, Direct Loans, and FFEL Loans.

Related: Top scholarships for veterans 

Military student loan repayment assistance 

While student loan forgiveness programs cancel college debt, repayment assistance programs give you money to help repay your student loans. There’s a variety of repayment programs for members of the Army, National Guard, Navy, and Air Force. Let’s take a look at each program. 

Also read: How to get Starbucks tuition reimbursement

Army: Active Duty

The Active Duty repayment program offers repayment assistance to soldiers on active duty in the Army. To qualify, you must (1) enlist for a minimum of three years and (2) score a 50 or higher on the Armed Forces Qualification Test. Assistance is for federal loans only, since private ones aren’t eligible. If eligible, the Army will pay up to 33.33% of your principal balance each year for three years. Through this program, you can receive up to $65,000 in loan assistance.

Army: Reserve

The Army Reserve repayment program offers repayment assistance to soldiers currently enlisted in the Army Reserve. Only specified Military Occupational Specialties (MOSs) qualify for this program. To qualify, you must (1) enlist for a minimum of six years, (2) score a 50 or higher on the Armed Forces Qualification Test, and (3) have loans before going on duty. If eligible, the Army will pay 15% of your loan balance for up to $20,000. This program primarily applies to federal student loans, instead of private ones.

Health Professions 

The Health Professions Loan Repayment Program provides loan assistance to doctors, dentists, and other healthcare professionals on active duty in the Navy, who serve in areas deemed to have a shortage. Qualifying active duty members can receive up to $40,000 annually. They must also not be recipients of HSPS (Health professions scholarship program) or FAP (financial assistance program). You can visit the Navy’s website for more details. 

National Guard

If you’re in the National Guard, you could receive loan assistance through the National Guard repayment program. To qualify, you must (1) enlist for a minimum of six years and (2) score a 50 or higher on the Armed Forces Qualification Test, and meet a few other requirements listed on their website. If you’re eligible, you could receive up to $20,000 in assistance. 

Air Force JAG Corps

Members of the Air Force Judge Advocate General’s (JAG) Corps are eligible for student loan repayment assistance. Qualifying members can receive up to $65,000 in assistance over the course of three years. 

Navy 

Active duty members of the Navy can receive repayment assistance during their first three years of service. Through this program, you may receive up to $65,000 in assistance. This program primarily applies to federal student loans. 

Other options for managing your student loan debt

Along with student loan forgiveness and repayment assistance, there are a few other options that can make your loan debt more manageable. 

Servicemembers Civil Relief Act (SCRA)

Active duty military members can benefit from the Servicemembers Civil Relief Act (SCRA), which caps the amount of interest that can be collected on loans at 6%. Reduced interest rates translate to lower monthly payments, which means you could pay off your student loan debt faster. SCRA benefits are automatically applied to active duty service members. Just keep in mind that this benefit only applies to loans obtained after August 14, 2008 and before starting your term of active duty service. Both federal and private student loans are eligible. 

Defer your student loans while you’re on active duty

The Department of Education allows members of the military to defer their student loan payments during active duty and 13 months afterwards as well. During this time, your principal payment halts while the government pays the interest on your Direct Subsidized and Subsidized Federal Stafford Loans. Although you won’t pay off your loans faster, you won’t have to worry about interest accruing during the pause. 

Also read: Student loan deferment: What it is and how to avoid it

Income-Driven Repayment Plan

Both civilians and active duty members can lower their monthly student loan payments by applying for an income-driven repayment plan. These plans are designed to make your monthly payments more affordable based on your income and family size. If your income is low enough, your payment could be as low as $0 per month. 

The bottom line

The bottom line is that there are many many ways to have the military help you pay for school, or help you pay off previous student loans. If you are already a member of the military go through your chain of command to get information and find out what you are eligible for. If you are not yet a part of the military, reach out to a local recruiter and ask them to speak with you about what your options might be!

Best of luck finding the military student loan forgiveness plan that is right for you!

Key Takeaways

• Members of the military have a few options for student loan forgiveness. The most common is Public Service Loan Forgiveness, or PSLF
• Partial forgiveness is also available for some members through the National Defense program
• Disabled veterans can also have up to 100% of their debt discharged
• Those who do not qualify can still get their loans deferred while in active service, and can consider alternative repayment plans to make them more affordable after service is over

Frequently asked questions about military student loan forgiveness