Student loan forgiveness for disabled veteran dependents

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The U.S. military offers an array of higher education funding programs to help its members pay for college in exchange for service.

If you need help filling in financial gaps, other options are also available for military members and their dependents — including veteran student loans.

If you or a member of your immediate family qualifies for veteran status, here’s everything you need to know about paying for your education:

• Apply for Post-9/11 GI Bill (Chapter 33) education benefits
• Complete the FAFSA and apply for scholarships
• If you still need more funding, start with federal loans
• Consider private student loans
• How do I get a VA student loan?
• Military and VA student loan forgiveness

Apply for Post-9/11 GI Bill (Chapter 33) education benefits

If you’re a veteran, the first place to look for college funding is the GI Bill. You can use benefits from the post-9/11 GI Bill to pay for:

• Tuition and fees
• Housing
• Books and supplies
• Moving expenses if you’re relocating from a rural area to attend school

GI Bill benefits last up to 36 months.

To qualify for Post-9/11 GI Bill benefits, at least one of the following must be true:

• Served at least 90 days on active duty on or after Sept. 11, 2001
• Received a Purple Heart on or after Sept. 11, 2001, and were honorably discharged
• Served for at least 30 continuous days on or after Sept. 11, 2001, and were honorably discharged with a service-connected disability
• Are a dependent child of a qualifying veteran or service member

To apply, you’ll need your:

• Social Security number
• Bank account and routing numbers
• Education and military history documentation
• Information about the school you plan to attend

GI Bill for dependents

If you earn GI Bill benefits and don’t use them, you can transfer your benefits to an eligible dependent child or your spouse. To transfer benefits, you must have completed at least six years of service and committed to four more years of service.

Additionally, your spouse or dependent must enroll in the Defense Enrollment Eligibility Reporting System (DEERS).

Learn more about specific rules for spouses and dependents by visiting the VA website.

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Complete the FAFSA and apply for scholarships

Your next step should be to complete the Free Application for Federal Student Aid (FAFSA).

With the FAFSA, you can apply for federal student aid, including grants and federal student loans. Unlike student loans, grants for college don’t need to be paid back.

Some grants available for military veterans include:

• Imagine America Military Award Program: The Imagine America Foundation offers $1,000 awards for those who have served in the military or who are on active duty.
• Iraq and Afghanistan Service Grant: Unlike other forms of federal financial aid, you don’t have to meet Expected Family Contribution (EFC) requirements to be considered for this grant. If your parent served in the military and lost their life in Iraq or Afghanistan following 9/11, then you might qualify. The maximum amount you could get for the 2020-21 award year is $6,345. You’ll need to fill out the FAFSA to apply.
• Pell Grant: Like the Iraq and Afghanistan Service Grant, the Pell Grant maximum award for the 2020-21 award year is $6,345. However, the amount you get will depend on your EFC, cost of attendance, and full- or part-time enrollment status. Be sure to submit the FAFSA to see what you might qualify for.

Scholarships are another option that don’t have to be repaid — and scholarships are available for just about any kind of student.

Some scholarships are need-based, while others might require that you work for a specific employer, belong to a certain racial or ethnic group, or meet other criteria.

Applying for military scholarships

Scholarships are available specifically for military veterans and their families. Here are a few programs that members of the military should know about:

• ROTC scholarships: Reserve Officers’ Training Corps (ROTC) is a program for college students planning to join the armed services as an officer. If you’re enrolled in ROTC, you could be eligible for scholarships to help cover tuition, room and board, or books and fees. ROTC scholarships are available for the Army, Navy, Marines, and Air Force.
• Daughters of the Cincinnati Scholarship: This scholarship is worth up to $20,000 for daughters of career-commissioned officers in any military branch.
• Operation Homefront’s Military Child of the Year: This program recognizes eight young people ages 13 to 18. Each recipient is awarded $10,000 as well as a laptop computer.
• American Legion scholarships: The American Legion offers several scholarships to veterans and their families. In 2019, the fund awarded $130,000 in scholarships.

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If you still need more funding, start with federal loans

If you’ve exhausted your GI Bill, scholarship, and grant options, federal student loans are likely a good next step. These loans come with federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs.

To apply for federal student loans, you must complete the FAFSA. After this, your school will send you a financial aid award letter detailing which loans you’re eligible for.

Here are the main types of federal student loans you should know about:

Learn More: No Credit Check Student Loans

Consider private student loans

If you have any funding gaps left over, private student loans could help cover the rest of your education expenses.

If you have excellent credit, you might even qualify for a lower interest rate on private student loans compared to federal student loans — particularly Direct PLUS Loans. Because of this, it’s a good idea to check your private student loan rates to see what you might qualify for.

Also keep in mind that depending on your credit, you might need a cosigner who has good credit to qualify for a private student loan.

Tip: Having a cosigner might also qualify you for lower rates than you’d get on your own — so it might be a good idea to apply with a cosigner even if you don’t need one.

Check Out: Student Loans Without a Cosigner

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) provides financial and legal protection to military members and their families.

The benefits from the SCRA include lower interest rates from creditors, eviction prevention, life insurance coverage protection, and more.

If you decide to take out a college loan, be sure to consider as many lenders as possible to find the right loan for you. Some lenders also provide special military benefits.

Credible makes it easy to compare multiple lenders — you can see your rates from our partner lenders in the table below in two minutes.

Lender	Fixed rates from (APR)	Variable rates from (APR)	Loan terms	Military benefits
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.12%+10	3.04%+10	5, 7, 10, 12, 15, 20 (depending on loan type)	Active duty military deferment
Fixed APR: 4.12%+10 Variable APR: 3.04%+10 Min. credit score: 540 Loan amount: $2,001 to $400,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program Customer service: Email, phone Soft credit check: Yes Cosigner release: After 12 on-time principal and interest payments Loan servicer: Launch Servicing, LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.25%+1	3.4%+	5, 10, 15	SCRA benefits
Fixed APR: 4.25%+1 Variable APR: 3.4%+ Min. credit score: 720 Loan amount: $1,000 to $350,000 Loan terms (years): 5, 10, 15 Loan types: Any private or federal student loan Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner) Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.99%+2,3	2.99%+2,3	5, 8, 10, 15	SCRA benefits
Fixed APR: 3.99%+2,3 Variable APR: 2.99%+2,3 Min. credit score: Does not disclose Loan amount: $1,000 up to cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Loan servicer: College Ave Servicing LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.02%+7	5.34%+7	7, 10, 15	Military deferment
Fixed APR: 6.02%+7 Variable APR: 5.34%+7 Min. credit score: 750 Loan amount: $1,000 to $200,000 Loan terms (years): 7, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and have a minimum income of $30,000. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Granite State Management & Resources (GSM&R)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.25%+8	4.38%+8	5, 10, 15	Check with lender
Fixed APR: 5.25%+8 Variable APR: 4.38%+8 Min. credit score: 670 Loan amount: $1,001 up to cost of attendance Loan terms (years): 5, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance Fees: Late fee Discounts: Autopay, reward for on-time graduation Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.89%+	N/A	10, 15	Military deployment forbearance
Fixed APR: 4.89%+ Variable APR: N/A Min. credit score: 670 Loan amount: $1,500 up to cost of attendance less aid Loan terms (years): 10, 15 Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services (AES)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.75% - 13.72% APR9	4.0% - 14.34% APR9	10, 15	Military service deferment or forbearance SCRA benefits
Fixed APR: 3.75% - 13.72% APR9 Variable APR: 4.0% - 14.34% APR9 Min. credit score: Does not disclose Loan amount: $1,000 up to 100% of school-certified cost of attendance Loan terms (years): 10 to 15 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner. Customer service: Phone, chat Soft credit check: Yes Cosigner release: After 12 consecutive on-time payments Loan servicer: Sallie Mae
Compare rates without affecting your credit score. 100% free!Compare Now
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

How do I get a VA student loan?

The VA doesn’t offer student loans, which means your options are federal and private student loans. The U.S. Department of Education offers a handful of benefits for military service members with federal loans, including:

• A 6% cap on interest rates while on active duty
• No interest charges for up to 60 months during certain periods when qualifying for special pay
• Deferment of payments while on active duty or on qualifying National Guard duty during certain periods
• Deferment of payments for 13 months following the end of active duty or until returning to school, whichever is earlier, for certain members of the National Guard and other reserve service members

The VA can also help you cover some of or all the costs of your education through the GI Bill, and many organizations offer scholarships to military service members and veterans.

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Military and VA student loan forgiveness

Military service members may qualify for the Public Service Loan Forgiveness Program if they make 120 qualifying payments while working full-time in eligible public service. If you apply by Oct. 31, 2022, months spent on active duty count toward that threshold, even if you were in deferment during that time period.

Military members may also qualify for loan repayment assistance through their respective branch of the armed forces, or even through the VA:

• VA Education Debt Reduction Program: Work for the VA providing health care to veterans and receive up to $200,000 in loan repayment assistance over five years.
• Navy: Receive up to $65,000 in student loan repayment assistance over your first three years in the service.
• Army: Receive up to $65,000 when you agree to an initial service obligation of five years. You’ll receive up to 33.3% of your loan amount or $1,500 (whichever is greater) for each year of service, up to the maximum.
• National Guard: Receive up to $50,000 in assistance when you enlist or extend for a six-year term of service or longer.
• Air Force: If you’re a member of the Judge Advocate General’s (JAG) Corps, you may receive up to $65,000 over a three-year period after you complete your first year of service as a JAG officer.

One thing to keep in mind is that private student loans aren’t eligible for federal loan forgiveness, and they may not be eligible for repayment assistance programs. These programs may also have some other requirements you need to meet, so review the eligibility criteria for the program you’re applying for to get all the information.

Ben Luthi contributed to the reporting for this article.

About the author

Eric Rosenberg

Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

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