Military Veteran Student Loan Forgiveness

If you're a military veteran or active-duty service member, you might be eligible for student loan forgiveness and repayment assistance. These programs are designed to recognize your service and help reduce the financial stress of student loan debt. Let's explore the available options and how they work.

Key takeaways

• Military veterans have multiple options for student loan forgiveness and repayment assistance
• Programs like PSLF and TPD offer relief based on service and disability status
• Each branch of the military offers specific loan repayment programs with unique benefits

Understanding Student Loan Forgiveness for Military Veterans

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you've made 120 qualifying monthly payments while working full-time for a qualifying employer, like the U.S. military.

• Eligibility: Full-time employment with a qualifying government or non-profit organization, including the military.
• Loan types: Only Federal Direct Loans qualify. If you have FFELP or Perkins loans, consider consolidating them into a Direct Consolidation Loan.
• Repayment plan: Must be on an Income-Driven Repayment (IDR) plan or the standard 10-year payment plan.
• Application: Submit the PSLF form annually through studentaid.gov.

TuitionHero Tip

Did you know that military service counts toward PSLF even if you're deployed overseas?

Total and Permanent Disability Discharge (TPD)

For veterans who are totally and permanently disabled, the Total and Permanent Disability Discharge (TPD) program can eliminate your federal student loans.

• Eligibility: Veterans with a 100% disability rating from the U.S. Department of Veterans Affairs.
• Loan types: Federal Direct Loans, FFEL Loans, Perkins Loans, and TEACH Grants.
• Application: The process can often be initiated automatically if the Department of Education is notified of your disability status, but you can also apply directly through disabilitydischarge.com.

National Defense Student Loan Discharge (NDSLD)

The NDSLD program cancels a portion of your Federal Perkins Loan if you've served in areas of hostile fire or imminent danger. Since this only applies to Perkins Loans, it’s less comprehensive than PSLF, but veterans with older student loans can still benefit.

• Eligibility: Service members who served in qualifying hazardous areas.
• Cancellation percentages:
  • 100% of the loan if your service started on or after August 14, 2008
  • 50% for those whose service started before that date
• Application: Contact the school that issued your Perkins Loan or their loan servicer for application procedures.

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Military student loan repayment programs

Each military branch offers loan repayment programs to attract and retain personnel with critical skills. These programs can significantly reduce your student loan debt.

Army Loan Repayment Program

• Benefits: 33% of the principal balance forgiven every year after your first year of service has been forgiven, with a cap of up to $65,000 total.
• Eligibility: Active-duty soldiers who enlist for at least three years in a qualifying Military Occupational Specialty (MOS).
• Payment structure: The Army will repay up to one-third of your loan balance or $1,500, whichever is greater, annually for each year of qualified service.

Navy Student Loan Repayment Program

• Benefits: Up to $65,000 in loan repayment assistance over three years.
• Eligibility: New enlistees in eligible ratings who serve on active duty.
• Application: Enlist with a Loan Repayment Program guarantee in your enlistment contract.

Air Force Judge Advocate General’s (JAG) Corps Loan Repayment Program

• Benefits: Up to $65,000 over three years.
• Eligibility: JAG officers after their first year of service.
• Application: Contact the Air Force JAG Corps for application details.

National Guard Student Loan Repayment Program

• Benefits: Up to $50,000 in loan repayment, up to $7,500 annually.
• Eligibility: Members who enlist for a minimum six-year term of service in a critical skill vacancy, and score 50 or higher on the Armed Forces Qualifying Test (AFQT)
• Application: Work with your National Guard recruiter or education officer to apply.

TuitionHero Tip

Stay proactive! Keep an eye on updates from the Department of Education and your branch of service to take full advantage of these programs.

Why trust TuitionHero

At TuitionHero, we provide military veterans with resources to navigate student loan forgiveness programs like PSLF, TPD, and branch-specific repayment options. We aim to help you reduce financial burdens while acknowledging your service.

Frequently asked questions (FAQ)

How do I apply for the Public Service Loan Forgiveness (PSLF) program

To apply for PSLF, you need to submit the PSLF form annually or whenever you change employers. You can find the form on studentaid.gov. Ensure you're on an income-driven repayment plan and that your loans are Federal Direct Loans to qualify.

Can I get loan forgiveness if I have private student loans?

Unfortunately, private student loans don't qualify for federal loan forgiveness programs like PSLF or TPD. However, you might explore refinancing options to manage your debt more effectively. Read our article on “do people save money by refinancing student loans” for more information.

What if I served in the National Guard; do I qualify for any loan forgiveness programs?

Yes, the National Guard Student Loan Repayment Program offers up to $50,000 in loan repayment for qualifying members who enlist for at least six years. Contact your National Guard recruiter or education officer for details.

Are there student loan benefits for health care professionals in the military?

Absolutely! The Health Professions Student Loan Repayment Program provides up to $120,000 for health care professionals serving in the Army, either on active duty or in the Reserve.

Do I have to pay taxes on forgiven student loan amounts?

Generally, forgiven loan amounts under programs like PSLF aren't considered taxable income. However, always consult with a tax professional or refer to IRS guidelines to understand any tax implications.

How can I ensure I'm on the right repayment plan to qualify for PSLF?

To qualify for PSLF, you must be on an income-driven repayment plan. You can also qualify on a standard 10-year repayment plan - but since this plan is structured for 120 total payments, there typically won’t be any balance left to forgive.

If you're unsure which plan you're on, contact your loan servicer for clarification. You can also learn more about different repayment plans by reading our article on federal student loans.

Final thoughts

Navigating student loan forgiveness as a military veteran can seem challenging, but understanding your options can lead to significant financial relief. Whether through PSLF, TPD, or branch-specific programs, your service opens doors to reduce or eliminate your student loan debt.

Stay informed, act promptly on key dates, and reach out to your loan servicer or military education office to maximize your benefits.

Source

• PSLF for Veterans
• TPD Program Eligibility
• NDSLD Program
• Army Loan Forgiveness
• Health Professions Loan Forgiveness