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Military Student Loan Forgiveness Programs How Active Duty and Reserve Military Personnel Can Have Their College Loans Forgiven
If you want to have your college student loans forgiven, then serving in the military is one option you might want to consider. All branches of the U.S. Armed Forces have introduced attractive solutions to help Soldiers, Sailors, Airmen and Marines find relief from their student loans.
Whether you are in the military now, serving on active duty or in the reserves, or considering making the military a career in the near future, this web site can help you if you are (1) seeking student loan repayment options, (2) looking for information on college loan forgiveness programs the military offers servicemembers, and (3) searching for ways to have student loans excused in exchange for your time spent serving your country. There are loan repayment and loan forgiveness programs available to military personnel serving in the Army, Navy, Air Force, Marine Corps and in the Coast Guard, as well as Reservists and National Guardsmen called up to active duty during wartime. Loan forgiveness programs for both enlisted personnel and officers are available from the federal government. By seeking student loan forgiveness for active duty military, excusing student loans, you get an opportunity to see the world and defend your country. And, in return, the federal government will often help repay the loans you took out to go to college. There are many programs, and as is the case with everything connected with the military, each opportunity usually is tempered by multiple restrictions. But these student loan forgiveness programs are well worth your time to hunt them down online and to apply for them to help gain forgiveness of your college loans. Government excusing student loans -- And now, with the announcements of President Obama's new vision for student loan forgiveness adding to the mix, new college debt rules concerning the repayment of federal student loans means there could be a very good chance you will soon have even more options to get your student loans forgiven and/or consolidate your federal student loans to a lower, more affordable monthly payment. The military's Student Loan Repayment Program (SLRP) is one such amazing loan forgiveness program. By accessing the Student Loan Repayment Program, when you enlist into the Army, Uncle Sam pays off up to $65,000 in your qualified education loans (that total is upwards of $20,000 for Reservists). By contrast, other branches of the military are not to be outdone. The Navy will commitment to pay back $65,000 and the Air Force ponies up to $10,000 when it comes to repayment of member's student loans. And, every year thereafter, fully 15 percent of one's student loan balance (or $500, whichever is greater) gets repaid through the military's SLRP. Truly, this is a wonderful incentive to join and serve in the military, as well as a well-deserved benefit for qualifying soldiers and sailors in uniform! You can click and view the Navy BUPERS instruction on the Navy Student Loan Repayment Program, complete with full details and forms on the subject. This program primarily used in the early stages of recruiting into the Navy ranks. But be forewarned: it's not always easy these days to even get into the armed forces anymore! There may be annual and cumulative caps on the amount repaid. Participants must score 50 or higher on the Armed Forces Qualifications Test (AFQT). SLRP must be requested at the time of enlistment or reenlistment. Qualified education loans include federal education loans such as the Perkins, Stafford, PLUS, or Consolidation loans, but not private alternative loans. Restrictions: Defaulted loans are not eligible. Taxability: Payments made under the SLRP are considered taxable income. If you are wondering if the money you save from student loan forgiveness is taxable or not, the Internal Revenue Service (IRS) provides guidance on Student Loan Cancellations and Repayment Assistance As you can see, the student loan forgiveness programs available in exchange for voluntary military service are indeed available. The only problem? Each service has different qualifications and requirements, so diligent research is required. Military Student Loan Forgiveness Resources: -- We've assembled this listing of helpful websites to assist your search. For more ways to locate military loan repayment and loan forgiveness programs online, check out:
Student Loan Relief for Active Duty Military Personnel: Back on August 18, 2003 , President George Bush signed the Higher Education Relief Opportunities for Students Act (HEROES), legislation authored by Rep. John Kline (R-MN) that allows the U.S. Secretary of Education to excuse military personnel from their federal student loan obligations while they are on active duty. For more general information about student loan discharge, contact the Direct Loan Servicing Center at 1-800-848-0979 if you have a Direct Loan. Contact the lender or agency that holds your loan if you have a FFEL. If you borrowed using a Federal Perkins Loan, contact that particular school which made the loan. The following information is found on the Federal Student Aid website: http://www.fsahelp.ed.gov/cancellation.html. Military personnel who have been deployed or mobilized are not required to make student loan repayments during their absences. Federal regulations require lenders to postpone the student loan program payments of active-duty military personnel. This applies to members of the National Guard and Ready Reserves who have been called to active duty, as well as to active-duty personnel whose duty station has been changed as a result of a military mobilization. Loan Forgiveness Program - A Breather for Distressed Military Personnel
Everyone is aware of the dedication and the sacrifices made by military personnel in the services provided to their country. But, do we do something to uplift the quality of their life? Though we place them on a pedestal, sing laurels about them and provide tributes to their service not much is being done to actually help them better their individual personal and family lives. Keeping that in focus a special program called Armed Forces Loan Forgiveness Program was started after 11 September 2001. This program is mainly focused on providing relief to a tune of $2,500 to people who have been in active service between 11 September 2001 and 30 June 2008. This is applicable to student loans and can be availed only once. This is totally a private funded program and does not involve the government in any manner. It is run by the Pennsylvania Higher Education Assistance Agency (PHEEA) that oversees the entire functioning of the program. Also, there is no burden on the taxpayers to fund the program in any manner. Apart from the eligibility criteria for the personnel to be in active duty between the stipulated periods mentioned, there are other criteria that need to be fulfilled to be able to avail the loan forgiveness program. Only student loans such as AES, Consolidation, HEAL, Keystone EXTRA, SLS and Stafford are eligible for participation to this program. The loan payments should not be in default and be paid correctly till the current date. Only loans provided before the deadline i.e. June 30 is eligible. Last but not the least the military personnel should have a connection to Pennsylvania to be eligible for the loan forgiveness program. For this, the person should be either a resident of the state presently or should have had their education in Pennsylvania before joining up the armed forces or should have been in the state when they entered the armed forces. For non-residents to be eligible is only possible if they had their education at a state college and joined the military right after their education. If the concerned military personnel match up with all these eligibility criteria, then they can get loan forgiveness through this program. The entire process of applying has been simplified and made easy. The interested personnel can get the form by going online and visiting the PHEAA site at www.pheaa.org and downloading it. After completing the form it can be forwarded to the PHEAA office at the following address: AES Loan Forgiveness Group, Post Office Box 2461, Harrisburg, Pennsylvania 17105-2461. The interested persons can also access a helpline by using the number 1-800-233-0557. The applications should reach the office before 31 December 2008 to be eligible for the program. Even though $2500 is not a substantially high amount in today's times, something is definitely better than nothing to help our military personnel tide over their financial difficulties. For this reason, many of our military personnel are utilizing this program to help them reduce their burden of never ending financial commitments in life. Discover more on loan military travel as well as loan rate act for military when you visit top military personal loans resources at http://www.martialloan.com Article Source: John B Mayall
Colleges help veterans and their families pursue college education |
Here are the answers to a few of the questions you might have as you begin paying off your education:
When do I have to start paying off my student loans?
Most loans offer a grace period after you graduate, so check with your lender. Private student loans offer a variety of grace periods depending on the lender; the most common types of federal loans offer a six-month grace period.
What is loan consolidation? Should I consolidate my loans?
If you have more than one student loan, a consolidation loan allows you to combine all your student loans into a single loan with one balance. You'll be able to simplify repayment by making just one payment, once a month. There are consolidation loans both for private student loans as well as federal student loans.
For private student loans, a private consolidation loan allows you to combine multiple private student loans into one new loan. This option may also allow you to lower your current monthly payment by providing you with a longer repayment period and may offer a lower interest rate than the average of your current individual loans. You should look for a lender, such as Wells Fargo, that offers a private consolidation loan with no application, origination or early repayment fees.
If you have federal student loans, contact the U.S. Department of Education Direct Lending Program. The Federal Direct Consolidation Loan lets you combine your federal student loans into one new loan. You'll have a single monthly loan payment, which may make it easier to manage your payments. If you plan to work in a public service job, having a Federal Direct Consolidation Loan allows you to apply for loan forgiveness under the Public Service Loan Forgiveness Program.
For any consolidation loan, be sure to read the terms. If the new loan results in a higher interest rate you'll need to weigh that against other considerations such as a lower payment, longer repayment term, or repayment benefits.
What if I can't afford to pay off my loans right now?
You're probably not alone if you are asking this question, as many college graduates are struggling to find jobs with the desired pay - or any job - in this economy. If you can afford to make your loan payments, even if it's just the minimum amount, you should. If you are experiencing financial difficulties and are having a hard time making your payments, work with your lender to figure out alternatives. Remember, your lender wants to work with you to find a solution. Your loan provider may offer the following options:
* Temporary changes to repayment plans. For a limited period of time, you may be able to pay less on monthly payments. If you have a Wells Fargo private student loan you may be able to take advantage of an interest-only repayment option for the first four years.
* Payment forbearance for private or federal student loans. If you demonstrate financial hardship, you may be able to temporarily stop making loan payments. Plans like these offer this option to those borrowers who demonstrate a willingness and ability to repay the loan.
* Income-Based Repayment Plan for federal loans. This plan bases your monthly payment on your yearly income and is designed for those experiencing a partial financial hardship.
* Deferment for federal loans. You may be eligible to postpone repaying your federal student loans for a defined period of time depending on your life situation and type of loan, such as experiencing economic hardship, going back to school or enlisting in the military.
Keep in mind that if you decide that a deferment or forbearance is your best option, your loans will continue to accrue interest during that period. For most loans, the accrued interest will be capped (meaning added to the principal balance) at the end of that period. This option should be considered only if you absolutely cannot make your payments at that time.
For more answers to your questions about student loans, visit wellsfargo.com/student or studentaid.ed.gov.
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How education can increase your earning potential
Unemployment is edging downward of late. Yet with millions of Americans still out of work, many are looking for ways to make themselves better prepared to seize emerging opportunities.
As blue collar jobs have been outsourced to other nations, many white collar jobs have vanished after corporate downsizing. Those who have earned college degrees - and those who haven't - are still feeling the crunch and facing fierce competition in the employment arena. Earning your college degree while still on active duty -- or while serving your country in the Reserves or in the National Guard -- is clearly a smart move, according to experts.
Micki Holliday, director of Career Services at Brown Mackie College - Kansas City, works every day with people who know first hand the consequences of increased competition for fewer job openings. "There's a good economic argument for going back to school," Holliday says.
Data from the U.S. Census Bureau bears this out. A typical fulltime worker, age 25 to 64, with a college degree earned 60 percent more than a high school graduate over the course of a career, according to a 2009 Current Population Survey. Those with a master's degree earned twice as much, and those with a doctoral degree earned three times as much as those who only had a high school diploma.
The same survey shows another benefit of earning a college degree in terms of the diminishing likelihood of becoming unemployed. With each level of education achieved, salary goes up and chance of unemployment goes down. "High levels of education can't inoculate workers from becoming unemployed," says Holliday. "However, during 2008, the unemployment rate for college graduates increased by just 1 percent, while it grew three times as much for those without a college degree."
Dealing with unemployment often becomes an impetus for thinking about going back to school. "People often don't know what to do. They just know they have to do something," Holliday says. "Four years of college isn't for everybody. That's where degree and certificate programs come into play. Additional classes can make a crucial difference and are especially necessary if one is considering changing careers. One of the most promising careers right now is in health care. Whether you want to work in a hospital or on the staff of a private home care company, no one gets into the field without higher education."
Industry projections anticipate 3.2 million new jobs will be created between 2008 and 2018, according to the Bureau of Labor Statistics' Career Guide to Industries. A two-year associate degree equips people with valuable skills that can help get a foot in the door to become part of a professional group. In addition to health care, two-year programs are available in many different fields, from legal to technology to business. So, by adding a college degree to your resume, along with the valuable skills you've learned while in the military, you should have an advantage landing the job you want in any job market.
"There are other intangible benefits in furthering your education," says Holliday. "It matters in terms of physical health and psychological welfare. I see people working fulltime and going to school, plus managing their families. It's a hard-earned accomplishment. We tell our students, 'Hard work pays off in the future; laziness pays off now.'"
Article courtesy of ARAContent.com
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