Military Student Loan Benefits
Active-duty service members, veterans, and National Guard members have access to powerful student loan protections, interest rate caps, forgiveness programs, and deferment options.
Benefits Overview
Military service members have access to several unique student loan benefits that can significantly reduce the cost of repayment or eliminate debt entirely. These benefits apply to federal student loans and, in some cases, certain private student loans.
Key programs include the Servicemembers Civil Relief Act (SCRA) interest rate cap, military deferment, active duty repayment plans, and eligibility for Public Service Loan Forgiveness (PSLF) through qualifying government employment.
SCRA Interest Rate Cap
The Servicemembers Civil Relief Act (SCRA) caps the interest rate on student loans taken out before active duty service at 6% per year during your active duty period. This applies to both federal and private student loans.
- Active-duty members of the Army, Navy, Marines, Air Force, Space Force, or Coast Guard
- National Guard members called to active duty for more than 30 consecutive days
- Reserve members called to active duty
Contact your loan servicer directly and provide a copy of your active duty orders. The cap applies from the date of active duty and continues for one year after active duty ends. Your servicer is required by law to apply this benefit.
Military Deferment
You may be eligible to defer federal student loan payments while on active duty military service and during a 13-month post-active-duty period, or until you return to enrolled student status — whichever comes first.
Active Duty Deferment
Pause payments while serving on active duty in the military in connection with a war, military operation, or national emergency.
Post-Active-Duty Deferment
Continue the deferment for up to 13 months after completing active duty service, giving you time to transition back to civilian life.
National Guard Activation
National Guard members activated under federal authority during a war or military operation may also qualify for military deferment.
Interest continues to accrue on unsubsidized loans during deferment. If you can afford to make payments, doing so prevents your balance from growing.
PSLF for Military Service Members
Active-duty military service qualifies as public service employment for PSLF purposes. Active-duty service members working for the U.S. military are employed by a qualifying employer and may make qualifying PSLF payments toward the 120 required for forgiveness.
All branches of the U.S. Armed Forces — Army, Navy, Air Force, Marines, Coast Guard, Space Force, and National Guard on federal orders — qualify as government employers for PSLF.
Periods of military deferment do not count as qualifying payments for PSLF, but also do not break the continuity of your PSLF progress. You pick up where you left off.
Veterans who transition to employment at the Department of Veterans Affairs or other federal agencies continue to qualify for PSLF and can accumulate payments toward forgiveness.
Additional Military Benefits
National Defense/International Maintenance Deferment
If you are a member of the National Guard or Reserve and are called to active duty while enrolled at least half-time, you may be eligible for this separate deferment.
Zero Interest During Active Duty (HEROES Act)
In some cases, active-duty military serving in areas of hostilities may qualify for additional interest waivers under the HEROES Act of 2003, at the Department of Education's discretion.
No-Penalty Loan Cancellation
If you are called to active military duty before completing your enrollment period, you can cancel your loans for the period without penalty and receive a refund of payments made.
GI Bill Interaction
Using GI Bill benefits does not disqualify you from federal student loan programs. You can use both, though you should coordinate carefully to avoid overpaying for education you receive through the GI Bill.
See All Your Forgiveness Options
Use our free eligibility checker to evaluate your PSLF progress, IDR forgiveness timeline, and other discharge programs available to military borrowers.