Benefits for Military Servicemembers

The SCRA allows members of the Uniformed Services to receive an interest rate cap of 6.00% for qualifying debts and it applies to private, Direct, and FFELP Loans that were obtained before the date you, or the eligible endorser, entered military service. For military service prior to August 14, 2008, only private loans are eligible to receive a reduced interest rate of 6.00%. Note that the SCRA interest rate limit does not apply to an endorser of a PLUS loan made to a parent or a graduate/professional student unless that individual is also performing eligible military service.

If a loan was obtained after the date you began military service, it is not eligible for the SCRA 6.00% interest rate cap. For eligible loans, you are eligible for the reduced rate from the date you began your military service through the date that you leave military service; as long as the period of service is greater than thirty days. Past due accounts are eligible for SCRA benefits; however, the interest rate change will not reduce any delinquency.

This deferment is available to a borrower during periods in which a borrower is serving in one of the following capacities:

• on active duty during a war or other military operation, or a national emergency
• on qualifying National Guard duty during a war or other military operation, or a national emergency

The deferment begins on the date the condition entitling the borrower to the deferment first existed and ends on the date on which the borrower's qualifying service is certified to end or actually ends.

For a borrower whose qualifying service includes October 1, 2007, or begins on or after that date, the deferment is extended for an additional 180 days after the date the borrower is demobilized from that qualifying service. The additional 180-day deferment is available to a borrower each time a borrower is demobilized from qualifying active duty service. The additional 180-day deferment period may not be granted unless we receive documentation of the date the borrower was demobilized from qualifying service.

This deferment is available to a borrower who is called or ordered to active duty on or after October 1, 2007, or for a period of service that includes that date, and who satisfies both of the following criteria:

• is a member of the National Guard or Armed Forces Reserve, including a member who was in a retired status when activated
• was enrolled on at least a half-time basis in a program of study at an eligible school at the time of, or within 6 months prior to, being called or ordered to active duty

A borrower who meets the eligibility criteria receive a deferment for up to 13 months following the completion of a period of active duty military service if that service began on or after October 1, 2007, or includes that date. The deferment ends on the earlier of the date of the borrower's re-enrollment in school on at least a half-time basis, or the date the 13-month period ends.

A borrower who is eligible for both the post-active duty student deferment and the 180-day extended military service deferment period can only receive these benefits concurrently and not consecutively (i.e., the maximum benefit is limited to 13 months).

While you are on active duty, certain documentation requirements for federal student loans are waived. For example, if you are on an income-driven repayment plan and military service prevents you from providing updated income and family size information, this documentation requirement will be waived and your current monthly payment amount will be maintained.

You may be eligible for forbearance of your loan, granted in yearly increments, if you are performing the type of service that qualifies you for a partial repayment of your loan(s).

If your physician certifies that you are totally and permanently disabled, you may be eligible for TPD Discharge. There are three ways to show that you are totally and permanently disabled:

1. You may submit documentation from the U.S. Department of Veteran’s Affairs (VA) showing that the VA has determined that you are unemployable due to a service-connected disability.
2. You may submit a Social Security Administration (SSA) award for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits stating that your next scheduled disability review will be within 5 to 7 years from the date of your most recent SSA disability determination.
3. You may submit certification from a physician that you are totally and permanently disabled and unable to engage in substantial gainful activity by reason of medically determinable physical or mental impairment that:
   • can be expected to result in death,
   • has lasted for a continuous period of not less than 60 months, or
   • can be expected to last for a continuous period of not less than 60 months.

If you meet certain criteria, no interest will accumulate on your loan(s) for a period of no more than 60 months during the service described below. For Direct Consolidation Loans, this benefit applies to the portion of the consolidation loan that repaid loans first disbursed on or after October 1, 2008. To be eligible, you must:

• have a Direct Loan that was first disbursed on or after October 1, 2008, and
• be serving on active duty or performing qualifying National Guard duty during a war, other military operation, or national emergency, and serving in an area of hostilities qualifying for special pay.

Please note that for Direct Loan borrowers working towards Public Service Loan Forgiveness (PSLF), in order to have your payments be considered "qualifying payments", you must repay your loan(s) under a qualifying repayment plan.

Qualifying repayment plans include:

• Income-Based Repayment (IBR)
• Pay As You Earn (PAYE)
• Revised Pay As You Earn (REPAYE)
• Income-Contingent Repayment (ICR)
• 10-year Standard Repayment

PSLF was created to encourage individuals to enter and continue to work full time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance due on your eligible federal student loans after you have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers.

Here are some helpful tips to consider prior to deployment which will assist in managing your student loan(s):

• Consider granting power of attorney to an individual you trust so they can act on your behalf. As an alternative, you can set up an authorized third party on your account to receive account information (unlike power of attorney, this authorization will not allow the third party to make changes to your account).
• Create an online account through   Manage My Account (MMA) to have quick access to account details. MMA allows you to access account specific information, make account changes, pay bills, and more.
• Sign up for eStatements through   Manage My Account (MMA) to have your correspondence sent electronically instead of by mail.
• Review your available repayment plan and deferment/forbearance options.
• Sign up for KwikPay^® (automatic-debit payment agreement) to have your payments automatically deducted from a checking or savings account each month. While your account is in active repayment and enrolled in Kwikpay, you may receive an interest rate reduction of 0.25%.
• Place an active duty alert on your credit report to reduce the risk that you'll become a victim of identity theft.