If you are in the military and you are struggling financially, it is important to know that you have certain additional protections. For example, the Servicemembers Civil Relief Act has provisions that apply to your student loans. All loans, including your federal and private student loans, that originated before you enlisted are capped at 6% APR during periods of active military duty. Any amounts owed above the 6% is forgiven and it cannot be tacked back on upon deactivation. In order to obtain this protection, you must notify your lender and send a copy of your orders or a letter from your commanding officer.
An additional protection for active service members is that you cannot be forced to respond to a lawsuit. In fact, a creditor must verify that a defendant is not on active duty when filing a lawsuit. This is especially helpful if you have private student loans.
You also have protections afforded under the Higher Education Act (HEA) when you are actively serving in the military. Your federal student loan can be placed in deferment during the time you are on active duty with an additional six months after demobilization. If you do not qualify for a deferment, a catch-all forbearance may be available.
If you have been full-time military for 10 or more years, you may be eligible to have your student loans forgiven if you are on the proper repayment plan. You may also be eligible for student loan forgiveness if you leave the military and enter employment with either the government or a 501(c)(3) non-profit.
If you are in the military and you have questions regarding your student loans, contact us to schedule an appointment.
For your student loan, bankruptcy, foreclosure, and debtor’s rights matters, contact DeLadurantey Law Office, LLC at (414) 377-0518. We serve the counties of Milwaukee, Waukesha, Kenosha, and Racine, including such areas as Milwaukee, Merton, Delafield City, Waukesha City, and Kenosha. Visit our website and like us on Facebook.