If you’re an active duty serviceperson or veteran with student loans, you could qualify for military student loan forgiveness, repayment relief or refinancing. As one of the millions of Americans burdened with student debt, your service could qualify you for significant relief.
Here’s a list of options for military student loan forgiveness and repayment that will help you get out of debt fast.
Military student loan repayment assistance programs
Military student loan forgiveness and discharge programs
Other options for managing your student loan debt
Finding student debt relief for servicemembers and veterans
What’s better than lower monthly payments or a reduced interest rate? How about no student loans at all?
There are several military student loan repayment assistance programs that can help eliminate some or all of your debt.
Army Student Loan Repayment: Active Duty
The Army Student Loan Repayment: Active Duty program offers military student loan repayment assistance to people on active duty. Among other requirements, you must enlist for at least three years and score 50 or higher on the Armed Services Vocational Aptitude Battery (ASVAB).
If you qualify, the Army will pay up to 33.33% of your principal balance each year for three years. You could receive up to $65,000 in loan assistance. Note that you can only use this money to pay off federal student loans, such as Direct, FFEL, and Perkins Loans. Private loans aren’t eligible.
The Perkins Loan program expired in September 2017. However, if you took out Perkins Loans in the past, they still qualify for loan assistance.
Army Reserve College Loan Repayment Program
If you’re in a qualifying Military Occupational Speciality (MOS), you could get assistance through the Army Reserve College Loan Repayment Program. You must enlist for at least six years and have loans before you go on active duty.
This program will pay 15% of your loan balance for up to $20,000. It applies primarily to federal student loans, not to private ones.
Health Professions Student Loan Repayment Program
The Health Professions Loan Repayment Program helps doctors, dentists, and other healthcare professionals on active duty or in the Army Reserve. Qualifying borrowers can receive up to $40,000 per year for up to three years. This $120,000 in military loan forgiveness could go a long way toward paying off medical or dental school loans.
Prior Service Soldier Loan Repayment Program
Army Reserve soldiers with prior military service can receive up to $50,000 toward student loan payments. You can request more information about student loan forgiveness for veterans through the U.S. Army website.
National Guard Student Loan Repayment Program
Members of the National Guard could receive up to $50,000 in military loan forgiveness. You must enlist for a minimum six-year term of service.
Navy Student Loan Repayment Program
If you’re in the Navy, you could receive up to $65,000 in student loan repayment assistance. The Navy program helps sailors in the first three years of service.
Air Force Judge Advocate General’s Corps Loan Repayment Program
If you join the Air Force Judge Advocate General’s (JAG) Corps, you could get up to $65,000 in student loan repayment assistance. You’ll receive payments over a three year period after your first year of service as a JAG officer.
Loan repayment assistance programs give you money to help pay off your student loans, but forgiveness and discharge programs get rid of your loans completely. Below are three options for military student loan forgiveness and cancellation.
National Defense Student Loan Discharge
The National Defense Student Loan Discharge is designed to help those who have put their lives on the line for their country. To qualify, you must have served at least one year in an area deemed imminent danger or in direct fire and have a Perkins or Direct student loan.
The application for the discharge includes a Department of Defense form and a letter explaining why you believe you qualify sent directly to the servicers of your loan. The amount discharged is partial and varies, so it is best to contact your loan company.
Veterans Total and Permanent Disability Discharge
For those who have sacrificed so much, the Veterans Total and Permanent Disability Discharge is there to release you from your loans. To qualify, you must have a service-related disability documented by the Department of Veterans Affairs and been deemed permanently disabled. Most loans are eligible for military student loan forgiveness through this program.
Public Service Loan Forgiveness
Service to our country qualifies borrowers for one of the most popular student loan forgiveness programs — Public Service Loan Forgiveness. This program forgives all student loan debt after the borrower makes 120 qualifying payments while working full-time with the military or another qualifying non-profit.
Note that deferred payments do not count toward the 120 monthly payments and might extend your timeline to receive PSLF.
Beyond military student loan forgiveness and repayment assistance, you have other options for making your student loans more manageable. The four approaches below can reduce your interest rate or lower your monthly payments. If you’re dealing with a lot of student debt, these four strategies could help ease the burden.
Cap interest through the Servicemembers Civil Relief Act (SCRA)
The Servicemembers Civil Relief Act could provide some relief from student loan debt. This act caps the amount of interest that can be collected on an active duty service person’s debt at 6.00%. This is especially good for borrowers with high-interest private loans, which often have higher rates than federal student loans.
For example, using our student loan payment calculator, a $20,000, 10-year loan at 8.5% interest has a monthly payment of $248. With the rate reduced to 6%, the monthly payment is lowered to $222. That’s a savings of $3,112 over the 10-year period. Apply those savings as extra payments on your loan and you’ll cut a full year from your repayment plan.
To qualify for this benefit, your loans must be more recent than August 14, 2008. Contact your loan servicer for information about SCRA eligibility.
Interest waiver for those at dangerous posts
Anyone deployed to an area that qualifies for imminent danger or hostile fire pay is entitled to have all interest waived on their federal student loans, so long as they were first disbursed on or after Oct. 1, 2008.
The Department of Education uses a data-matching system to identify service members who qualify for this benefit, so it should be applied automatically. But if you think you’ve been passed over for this key waiver, contact your servicer once you get the chance, and your interest charges can be thrown out retroactively.
Defer your student loans while you’re on active duty
If you’re currently serving, your monthly payment doesn’t have to be a burden. The Department of Education allows you to defer your student loan payments during active duty service and 13 months after your return (or until you return to school with at least half-time status).
During this time, the government will pay the interest on your Direct Subsidized and Subsidized Federal Stafford Loans while the principal is delayed. While you won’t pay your loans off any faster, you also won’t have to worry about accruing interest while your payments are paused.
This is not the case for unsubsidized loans, however. If you have an unsubsidized loan, you might benefit from using a student loan deferment calculator to estimate the amount of interest you will accrue while in deferment.
Lower your monthly payments with an income-driven repayment plan
Another way to manage your monthly payments is to apply for an income-driven repayment plan. These plans take into account your current discretionary income and family size in order to adjust your monthly payments accordingly. In some cases, your new monthly payment could be as low as $0.
For example, Income-Based Repayment is one of the most popular plans. It limits your monthly payments to 10% or 15% of your discretionary income and results in forgiveness of any remaining debt after 25 years.
Overwhelmed by the thought of all the paperwork required to maintain enrollment? That’s where the Heroes Act Waiver (HAW) comes in. With HAW, you’re not required to submit applications or proof of income during active duty periods. This means that even if your income increases, you can request to maintain the old, lower payment.
Note that this option does come with possible drawbacks. So always consider the pros and cons of income-driven repayment before enrolling.
Refinance your student loans for a lower interest rate
Whether you’re a civilian or an active duty member, an effective way to tackle student loan debt is by refinancing your loans. Refinancing is the process of paying off one or more student loans by obtaining a new, single loan through a private lender. Unlike the military loan repayment assistance program, refinancing applies to both federal and private loans.
Usually, the goal is to get a lower interest rate on the new loan, and in turn, enjoy smaller monthly payments. This move can save money in interest charges, too. You might also be able to extend your repayment period to lower monthly payments even more (though this could cancel out some or all interest savings).
It’s important to note that refinancing isn’t a magical solution to your debt problem and it’s not a great choice for all borrowers. There are several important pros and cons to consider, especially when it comes to refinancing federal student loans.
For example, refinancing federal loans with a private lender means permanently giving up access to government-backed benefits, including income-driven repayment options and the Public Service Loan Forgiveness Program.
However, if you have several high-interest loans or private loans — or don’t qualify for income-driven repayment — refinancing could be the answer to cutting the cost of that debt.
Student loan debt shouldn’t be a burden to carry on and off the battlefield. The government has provided incentives, benefits, and student loan forgiveness for veterans and those on active duty.
By exploring your options for military student loan forgiveness and assistance, you could gain major relief from your student loans — and perhaps even get rid of your debt entirely.
Interested in refinancing student loans?Here are the top 9 lenders of 2022!
|Lender||Variable APR||Eligible Degrees|
|2.75% – 8.90%1||Undergrad & Graduate|
|2.50% – 6.80%2||Undergrad & Graduate|
|2.81% – 7.21%3||Undergrad & Graduate|
|2.49% – 7.99%4||Undergrad & Graduate|
|3.24% – 7.99%5||Undergrad & Graduate|
|3.24% – 8.24%6||Undergrad & Graduate|
|2.99% – 7.24%||Undergrad |
|1.74% – 7.99%7||Undergrad & Graduate|
|3.69% – 9.92%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount. Fixed loans feature repayment terms of 5 to 20 years. For example, the monthly payment for a sample $10,000 with an APR of 5.47% for a 12-year term would be $94.86. Variable loans feature repayment terms of 5 to 25 years. For example, the monthly payment for a sample $10,000 with an APR of 5.90% for a 15-year term would be $83.85.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2022.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $9 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the 30-day Average Secured Overnight Financing Rate (“SOFR”) and changes in the SOFR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%. There is no limit on the amount your interest rate can increase at one time. The Index is currently published by the Federal Reserve Bank of New York (“New York Fed”). If the Index is no longer available, it will be replaced by a replacement Index according to the terms of the promissory note.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of October 31, 2022. Information and rates are subject to change without notice.
3 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 10/26/2022 student loan refinancing rates range from 2.81% APR – 7.21%APR Variable APR with AutoPay and 3.99% APR – 10.68 APR% Fixed APR with AutoPay.
4 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
You can choose between fixed and variable rates. Fixed interest rates are 3.99% – 8.74% APR (3.74% – 8.49% APR with Auto Pay discount). Starting variable interest rates are 2.74% APR to 8.24% APR (2.49% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.
5 Important Disclosures for Navient.
6 Important Disclosures for SoFi.
Fixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 3.24% APR to 8.24% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
7 Important Disclosures for Purefy.
Purefy Student Loan Refinancing Rate and Terms Disclosure: Annual Percentage Rates (APR) ranges and examples are based on information provided to Purefy by lenders participating in Purefy’s rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.73% – 7.99% APR, and variable rates ranging from 1.74% – 7.99% APR. The maximum variable rate is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. Rates and terms are subject to change at any time without notice. Terms and conditions apply.
8 Important Disclosures for Citizens.
Education Refinance Loan Rate Disclosure: Variable interest rates range from 3.69%-9.92% (3.69%-9.92% APR). Fixed interest rates range from 4.49%-10.11% (4.49%-10.11% APR).
Undergraduate Rate Disclosure: Variable interest rates range from 6.39%- 9.60% (6.39% – 9.60% APR). Fixed interest rates range from 6.58% – 9.79% (6.58% – 9.79% APR).
Graduate Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).
Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 3.69%- 9.09% (3.69%- 9.09% APR). Fixed interest rates range from 4.49% – 9.28% (4.49% – 9.28% APR).
Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).