Is there any special student loan help for members of the military?

July 29, 2014 10:26 AM

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Ron emailed: I am in the U.S. Army Reserve as an Officer. When I joined the Army I was in graduate school. Then after my graduation, I decided to go back to a graduate school to take another masters degree. So right now my student loans are about $60,000. Do you know any organization that is military-friendly that can help me pay off this student loan?

As a member of the military, you get a break on the interest rate on your loans (for both graduate and undergraduate). Under the Servicemembers Civil Relief Act, if you took out student loans before entering the military or being called to active duty, the interest rate is capped at 6% during your active duty military service.  There are a few resources where you can check if you qualify for help, the first being the Army’s benefits website where you’ll find details on the loan repayment program. For instance, Army Reserve soldiers on active duty are eligible for the program if they meet certain conditions (soldiers must be enlisted for at least six years, loans must be made prior to starting active duty, etc.) Active-duty enlisted members of the Army National Guard and Army Reserve are eligible for an annual loan repayment benefit of 15% or $500, whichever is greater, up to $20,000. Check Edvisors.com’s section on loan forgiveness for military service for more information. You might also be eligible for a Military Service Deferment or Post-Active Duty Student Loan Deferment, which temporarily lets you stop making payments on your federal student loans.

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