Student loan interest canceled for 47,000 service members

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  • The Department of Education announced that it is waiving interest on student loans for 47,000 military personnel.
  • Receipt of benefits will also be automated, so borrowers do not have to submit separate requests.
  • This manual was created in accordance with the Law on Higher Education, but many documents were unable to access it.

The day after the education department $ 5.8 billion destroyed With regard to student debt from borrowers with disabilities, it was announced that the military would also receive relief: the waiver of interest, which was a relief under the Higher Education Act but has not yet been received.

On Friday, the Department of Education announced that the Federal Student Aid Bureau (FSA) will retroactively waive student loan interest for 47,000 former and active military personnel. The relief will happen automatically, eliminating the need for military personnel to make individual requests to gain advantage. According to Press releasethe automation of the process means that benefits will receive eight times more active and active military personnel than in 2019.

“The brave men and women in military uniform serving our country can now focus on getting their jobs done and returning home safely, rather than completing additional paperwork to gain access to their hard-earned benefits,” the chief operating officer said in a statement. FSA Director Richard Cordray. “The Federal Student Aid Service is grateful for our close partnership with the Ministry of Defense, and we will strive to reduce the red tape for the military where possible.”

Military personnel deployed to areas that qualify them for payment of “imminent danger or hostile fire” under the Higher Education Act should not be charged interest on student loans that were first paid on or after October 1, 2008. But because the process was not previously automated, only a small subset of eligible service members were able to access the benefit, and only about 4,800 of them received assistance in 2019.

Along with waiver of interest, military personnel are also eligible for full student debt relief through the Public Service Loan Forgiveness (PSLF) program, which forgives student debt to government employees after 120 monthly qualifying payments. But not only this program is wrong, deviation 98% applicants, if the support staff is involved and suspends payments, this time does not count towards the loan forgiveness, extending the period during which they must continue to pay.

And according to the Government Accounts Chamber reportAs of January 2020, 287 Department of Defense employees have received loan forgiveness and 5,180, or 94% of Defense Department borrowers, have been rejected.

In April, Republican Senator Marco Rubio of Florida and Democratic Senator Maggie Hassan of New Hampshire introduced legislation This allows military personnel who have deferred student loan payments while on the job to calculate that period of time before progress is made at PSLF, speeding up the process of writing off student debt.

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