Military Benefits

We appreciate the service you have provided to our country. We are here to help you manage your student loans, access benefits available to you because of your military service, and review repayment options specific to your situation. Contact our Servicemember and Veteran Liaison team at 1-855-278-3619 (Toll Free) or MilitaryVIP@mohela.com for more information about these benefits from the U.S. Department of Education (ED) and the U.S. Department of Defense (DOD).


You can review For Members of the U.S. Armed Forces. What you need to know about your federal student loan benefits at studentaid.gov/sites/default/files/military-student-loan-benefits.pdf.


Military Branch Benefits Chart

The following Military Benefits Chart provides information pertaining to federal student loan benefits and repayment options available from ED and the DOD to assist members of the armed forces who have federal student loans.

Description
Eligibility
Documentation Requirements

Interest rate on federal student loans you received before your military service is capped at 6% during periods of active duty.

MOHELA will proactively apply SCRA benefits for eligible borrowers confirmed in active duty status based on dates on the Official Department of Defense SCRA Website. In accordance with the Act, the borrower may waive the interest rate benefit at any time.

  • For loans disbursed prior to active duty start date.

  • For federal student loans, the earliest benefit effective date is August 14, 2008; active duty periods that fall on or after that date may qualify.

  • If you consolidate your federal student loans after you begin active duty, your consolidation loan may not be eligible for the benefit.

  • MOHELA will check an authorized military database, and if you are listed as being in active duty status we will automatically apply the benefit to your eligible loan(s).* If your military orders show an earlier active duty start date, you may submit a copy of your orders, and MOHELA will apply the benefit based on the earlier start date.

  • You may also request the benefit by submitting a completed SCRA Interest Rate Request form, a completed Military Service and Post-Active Duty Student Deferment Request, or a copy of your orders.

Description
Eligibility
Documentation Requirements

You can postpone loan repayment during certain periods of active duty and immediately following active duty.

  • For active duty military service during a war, other military operation, or national emergency.

  • National Guard Servicemembers must be called to active duty by the President or the Secretary of Defense and paid for with federal funds.

  • Assigned to a duty station other than your normal station.

  • Periods of training or attending service school are not eligible for deferment.

  • Completed Military Service and Post-Active Duty Student Deferment Request form with a certification from an authorized official in Section 4; or

  • Completed deferment request form with a written statement from your commanding/personnel officer; or

  • Completed deferment request form with a copy of your military orders; or

  • If you cannot submit a deferment request form or other documentation, a verbal request from you or your representative. Deferment based on a verbal request is limited to an initial twelve-month period.

Description
Eligibility
Documentation Requirements

You can postpone repayment while you prepare to return to school following your active duty. Suspend payments after active duty military service and any applicable grace period until the earlier of (a) the date you resume enrollment at an eligible school on at least a half-time basis, or (b) 13 months following the completion of your active duty military service and any applicable grace period.

Following service during a war, other military operation, or national emergency.

  • Military Service and Post-Active Duty Student Deferment Request form with a certification from an authorized official in Section 4; or

  • Completed deferment request form with a written statement from your commanding/ personnel officer; or

  • Completed deferment request form with a copy of your military orders.

Description
Eligibility
Documentation Requirements

You may qualify for forgiveness of the remaining balance of your Federal Direct Loans. Learn more at www.mohela.com/pslf

  • Federal Direct Loans only.

  • Employed at least 30 hours per week on average at a qualifying government or nonprofit public service organization, including military service.

  • Make 120 qualifying payments after October 1, 2007 while in a qualifying income-driven or 10-year standard repayment plan.

Submit an Employment Certification Form or Certification of Military Service to determine eligibility.

If a service member borrower has already submitted a PSLF form or Certification of Military Service and is on track for PSLF, they do not need to take any other action for these updates to occur to their account and payment counts towards PSLF.

If a service member borrower has Direct Loans and has never submitted a PSLF form before, we recommend they use the PSLF Help Tool to complete the form and submit it to the PSLF servicer.

Description
Eligibility
Documentation Requirements

While you are serving in a hostile area that qualifies you for special pay, you do not have to pay interest for up to 60 months.

  • Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans made on or after October 1, 2008.

  • For a Direct Consolidation Loan, the portion of the loan that represents loans made on or after October 1, 2008.

  • Proof of deployment in a hostile area, including:

  • A completed Military Service and Post- Active Duty Student Deferment Request form with a certification from an authorized official certifying your service in an area of hostilities that qualifies you for special pay; or

  • Military orders showing you’re serving in a hostile area; or

  • A Leave and Earnings Statement showing you’re receiving hostile or imminent danger pay.

Description
Eligibility
Documentation Requirements

Repayment plans that base your monthly payment on your income and family size are available for federal student loans. Under these plans, you may qualify for a low or zero payment amount with the possibility of forgiveness of the remaining balance in 20 to 25 years.

Eligibility requirements vary depending on loan type and repayment plan. Contact MOHELA to determine your eligibility.

A completed Income-Driven Repayment Plan Request and documentation of income.

Description
Eligibility
Documentation Requirements

While you are on active duty, ED waives certain documentation requirements for federal student loans. 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.

Active duty military service during a war, other military operation, or national emergency.

  • Military orders.

  • MOHELA may apply a waiver if they have information that you are actively serving in the military and qualify for the waiver.

Description
Eligibility
Documentation Requirements

In certain circumstances, as determined by the D.O.D., all or a portion of your federal student loans may be repaid by the D.O.D.

Varies based on branch of military.

Contact your designated Military Personnel Officer or representative for more information.

Description
Eligibility
Documentation Requirements

If you have a service- connected disability, you may qualify for discharge of your federal student loans. Discharge for 100% service-connected disability.

  • Determination by the U.S. Department of Veterans Affairs (VA) that you are unemployable due to a service-connected disability; or

  • Determination by the Social Security Administration (SSA) or a physician that you are unemployable due to a total and permanent disability

  • To Apply:
    Call Nelnet at (888) 303-7818

For a VA service-connected disability:

  • Total and Permanent Disability Discharge Application. You may need to provide additional documentation from the VA showing that you are unemployable due to a service-connected disability.

For a total and permanent disability unrelated to your service:

  • Total and Permanent Disability Discharge Application and additional documentation from the SSA or your physician indicating that you have a total and permanent disability.

To view more information on supporting documentation requirements for Total and Permanent Disability Discharge, visit disabilitydischarge.com.

Description
Eligibility
Documentation Requirements

Temporarily suspend payments while you are serving in an AmeriCorps position for which you received a national service award

AmeriCorps

Only AmeriCorps qualifies. To Apply: CNCS Request Form must be submitted

Description
Eligibility
Documentation Requirements

Temporarily suspend payments while military repays your loans.

Servicemembers in the Air Force, Army, Coast Guard, Marine Corps and Navy.

Submit the Mandatory Forbearance form with Section 4 completed by an authorized official.

Description
Eligibility
Documentation Requirements

Temporarily suspend payments during qualifying Active State duty or Full-time National Guard duty when you do not qualify for a military service deferment or other deferment; and you were activated no more than 6 months after the last date on which you were enrolled in school at least half time.

  • During qualifying Active State duty or Full-time National Guard duty.

  • When you do not qualify for a military service deferment or other deferment;

  • Activated no more than 6 months after the last date on which you were enrolled in school at least half time.

  • Armed Forces - Air Force, Army, Coast Guard, Marine Corps, Navy not applicable.

Submit National Guard Forbearance application with section 4 completed by authorized official, or orders.

Description
Eligibility
Documentation Requirements

Suspension of payment for loans with outstanding balance on/before July 1, 1993.

Loans with outstanding balance on/before July 1, 1993.

Submit an application with Section 4 completed, or orders.

Description
Eligibility
Documentation Requirements

Interest rates may be reduced to 3% during active duty service.

Eligibility is based on active duty status reflecting on the SCRA Website.

  • National Guard Servicemembers may request verbally.

  • Alternatively, written requests with orders may also be submitted.

Description
Eligibility
Documentation Requirements

Suspend payments while serving in war on terror, national emergency or temporary change of station.

National Guard Servicemembers must be called to active duty by the President or the Secretary of Defense and paid for with federal funds.

Submit Military Forbearance application with Section 4 completed by authorized official, or orders.


HELPFUL TIPS – IF ACTIVE DUTY OR DEPLOYED

  1. Consider granting a power of attorney to an individual you trust to allow him or her to manage your financial matters, including your federal student loans. The person to whom you give power of attorney can sign documents and act on your behalf. The Legal Assistance Office on your military base can assist with establishing a power of attorney. As an alternative, you can provide your servicer with the name of the person you approve to receive information about your loan by filling out this form.

  2. Establish an account on your servicer’s website, which will allow you to view information about your federal student loan and make payments online.

  3. Provide your servicer with your current contact information, including an e-mail address, to ease communication.

  4. Make interest payments, even if you have military deferment available to you. This will keep your balance from increasing and could save you money in the long run.

  5. Review your repayment options. Repayment plans based on your income may provide a better outcome for federal student loans, as you may qualify for a low payment and loan forgiveness

  6. Sign up for automatic payments to help keep your loan(s) in good standing.

  7. Place an active duty alert on your credit report to reduce the risk that you’ll become a victim of identity theft. When a business sees an active duty alert on your credit report, it must verify your identity before issuing credit. You may designate a personal representative (a spouse or another trusted person) who can act on your behalf to verify your identity or remove your active duty alert if needed.

Useful Student Loan Resources

Resource Description

Federal Student Aid

StudentAid.gov/military
www.StudentAid.gov
1-800-4-FED-AID (1-800-433-3243)

Learn more about government and nonprofit organizations that offer money for college to veterans, future military personnel, active duty personnel, or those related to veterans or active duty personnel.
If you have federal student loans, you can learn about repayment plans, deferment and forbearance, and other options to help you repay your loans

National Student Loan Data System (NSLDS®)

StudentAid.gov

Find out who is servicing your federal loans with NSLDS’s comprehensive database.

D.O.D. and VA Military Information Programs

www.militaryonesource.mil/
https://todaysmilitary.com/living/paying-for-college
https://benefits.va.gov/gibill/

Information and resources for servicemembers and their families, including information on veterans benefits and paying for college.

Servicemembers Civil Relief Act (SCRA)

scra.dmdc.osd.mil/scra/#/home

Get more information about the benefits available through SCRA.

Equifax - www.equifax.com
Experian - www.experian.com
Transunion - www.transunion.com
Innovis - www.Innovis.com

These are nationwide consumer reporting agencies where you can place an active duty alert on your credit report. Simply enter “active duty alert” in the website search box for forms and contact information.

Total and Permanent Disability Discharge

www.disabilitydischarge.com

Get more information on loan discharge for disabled veterans.