Service members benefit from automatic interest waiver on federal student loans

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More than 47,000 military personnel will benefit from a retroactive waiver of interest on their federal student loans, the US Department of Education said on Friday. The new automatic waiver aims to make military student loan interest waivers more widely available to eligible borrowers, with around 880 percent more current and former active-duty members benefiting now than in 2019.

Service members can now automatically receive interest waiver

Under the Higher Education Act, military personnel deployed to areas that qualify them for imminent danger or hostile fire compensation are eligible to receive interest relief on certain federal student loans that were disbursed for the first time as of October 1, 2008.

However, prior to the Ministry of Education’s announcement, borrowers were required to apply for the waiver and submit the appropriate documents proving their eligibility. In the absence of automatic data matching, very few eligible military personnel actually received the benefit; in 2019, only 4,800 members received it.

Thanks to a data match agreement with the U.S. Department of Defense, current and former active duty members can now benefit from an automatic interest rate waiver on their federal student loans. This agreement removes a major obstacle for servicemen who receive the aid to which they are legally entitled.

“The brave men and women in uniform serving our country can now focus on their jobs and return home safely, without filling out more paperwork to access their hard-earned benefits,” said Richard Cordray, director of the exploitation of federal student aid. friday statement. “Federal Student Aid is grateful for our strong partnership with the Department of Defense, and we will seek to reduce paperwork for the military where possible. “

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