Naval Officer College Loan Cancellation

[Dougemd]

I was reading that there are college loan cancellations for enlisted personel. Do any exist for aviation officers? It'd be really nice to get a flight student spot and wipe the slate clean.

 

[SteveG75]

Last time I checked you could take up to 3 years deferment of student loans for being active duty military. I did it for two then started paying. Paid them off 3 years ago.

BTW: I have never heard of loan cancellations for enlisted either. There are programs for both officers and enlisted to help pay for college, but when you get a loan, somebody has to pay it back.

OK, found two new things

New Student Loan Relief for Active Military
Effective date: Jan. 1, 2004

After September 11, 2001, Congress and the Department of Education passed a number of laws to assist student loan borrowers affected by military mobilizations and national emergencies. The Higher Education Relief Opportunities for Students Act of 2003, the most sweeping new law, took effect in August 2003 (and will expire on September 30, 2005). (20 U.S.C. § 1001 and following.) This law authorizes the Secretary of Education, at his discretion, to waive or modify federal student financial assistance rules that affect individuals who are:

- serving on active duty during a war or other military operation or national emergency
- performing qualifying National Guard duty during a war, operation, or emergency
-residing or working in an area that is declared a disaster area by any federal, state, or local official in connection with a national emergency, or
-suffering direct economic hardship as a direct result of a war or other military operation or national emergency.

The Department of Education has also announced other policies to ease the burden on borrowers serving in the military. In March 2003, the Department reminded lenders and guaranty agencies that, under the Higher Education Act, active duty military personnel are not required to make student loan payments while deployed. The Department urged schools to assist borrowers who have been mobilized, and encouraged (but did not require) lenders to review borrowers' eligibility for deferments, including economic hardship deferments and military deferments when available. During a deferment period, interest does not accrue. (You can read about how to postpone student loan payments or cancel your loans altogether in Nolo's article, When You Can't Pay Your Student Loans: Cancellation, Deferment and Forbearance.)

In addition, active military personnel who have not begun repayment on their loans are eligible to extend the post-graduation grace period. These rules apply to members of the National Guard and the Ready Reserves of the Armed Forces who have been called to active duty, and to active duty military personnel whose duty stations have changed as a result of a military mobilization.

Also, for students forced to withdraw from school in order to fulfill military obligations, the Department has encouraged schools to provide either a full refund of tuition and other charges, or to give the student a comparable credit against future charges.

Other important student assistance rules that the Department has waived or modified include:

Forbearances for Perkins loans. The usual three-year limit on the length of Perkins forbearances is waived for forbearances based on a borrower’s military service.

Loan cancellation programs. Many loan cancellation programs, such as the loan cancellation program for teachers, require applicants to perform a certain number of years of uninterrupted service. Time spent on active duty is not considered an interruption for purposes of these cancellation programs.

And,

Military Service

Recipients of a National Defense Student Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if the loan was disbursed after April 13, 1970 and full-time active service began after June 30, 1970.

Recipients of a National Direct Student Loan and Perkins Loan may receive partial cancellation of their loan for their service in the United States Armed Forces if his/her military service was for a full year in an area of hostilities.

If you believe that you may qualify for cancellation of your loan(s) due to your military service as described above, you should send a copy of your DD214 (discharge form) and letter of explanation to the agency servicing your loan.

The way I read these is that the first one is based on economic hardship and the second only applies to National Direct Student Loans and only after a year in a combat zone.

Most student loans are guaranteed to a private lender by the federal goverment. Only certain ones such as NDSL and Perkins are from the government. NDSL was less than 10% of my loans.

Sorry for the long reply but it seems like cancellations are an exception on an as needed basis, not an automatic rule.

 

[Dawgfan]

I've heard that the interest on credit cards will be suspended while you're on cruise. Any other good cruise deals out there?

 

[karlahaze]

The university does not provide international students

I want to get a student loan in the UK to study abroad. I really want to study at university in Florida and live with my cousin. The university does not provide international students with any financial aid or give them grants etc. How can I find out if I can get a student grant in the UK to go towards university funds in the USA? Has anybody done this or do you think I could?

 

[HH-60H]

I want to get a student loan in the UK to study abroad. I really want to study at university in Florida and live with my cousin. The university does not provide international students with any financial aid or give them grants etc. How can I find out if I can get a student grant in the UK to go towards university funds in the USA? Has anybody done this or do you think I could?

Welcome to AW! We'd love to help, but our area of expertise is the US Navy and the process to join it. Your situation is very unique and out of our scope. I don't think there will be anybody here who can provide much useful experience or advice. My suggestion would be to start with the institution that is providing you the grant in the UK. Ask them if it is possible to use your grant in the "upstart colonies." Also, even if the college you want to attend doesn't provide financial aid, there are a lot of opportunities for scholarships. Try here the College Boards's Scholarship Search Site to searching for a scholarship.

 

[Cams1215]

I've used the search function, and couldnt find much. I'm trying to get all my information so when my Final Select letter and orders come I wont have to scramble to get this all done. I was going through the eligibility information from Sallie Mae, the Military Deferment Request.

Can you have your loans deferred while you are in OCS?

It defines active duty, as full time in the active military, but doesnt include training or attendance at a service school.

What are some of the ways that people have worked around this and had their loans deferred? I'm open to anything. Thanks,

 

[BACONATOR]

Does this active duty deferment only apply when deployed (mobilized)? I would love to take advantage of the opportunity to pay my bills while not accruing interest.

 

[BackOrdered]

Does this active duty deferment only apply when deployed (mobilized)? I would love to take advantage of the opportunity to pay my bills while not accruing interest.

I graduate this year and my first student loan payment begins in 2011.

 

[Cams1215]

in Section 6: Definitions, of the Sallie Mae deferment application, it states - Active Duty means full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1), but does not include training or attendance at a service school.

in Section 7: Eligibility Criteria for Military Deferment, it states --
I may defer repayment of my eligible loasn(s) for a maximum of 3 years while I am:
-serving on active duty status during a war or other military operation or national emergency.

 

[BACONATOR]

in Section 6: Definitions, of the Sallie Mae deferment application, it states - Active Duty means full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1), but does not include training or attendance at a service school.

in Section 7: Eligibility Criteria for Military Deferment, it states --
I may defer repayment of my eligible loasn(s) for a maximum of 3 years while I am:
-serving on active duty status during a war or other military operation or national emergency.

I take this to mean I can not defer right now since I am in flight school. Is this correct? Could I defer once I get to a fleet squadron and am active-duty no longer in a service school?

 

[MasterBates]

BS, you are AD.

Service school = Academy

Make sure the deferment does not continue to pile up interest.

I looked at doing that with my student loans during my divorce because it would free up $800 a month. But the interest made that a bad long term idea.

 

[Cams1215]

It also says you can't defer during training, and I dont know if that means OCS, API, flight school. I was hoping there maybe some people here who know whats goin on.