The Senate will hold a hearing this week examining access
and support for service members and veterans in higher education.
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That hearing and some additional research brings to light
just how many benefits are out there for this group – just not all in one
place. In fact, of the hundreds of higher education benefits available, there
are probably just as many individual places that current service members and
veterans will have to dig to try and find them.
So, as the Memorial Day weekend approaches, the Student Loan
Ranger would like to dedicate this week's blog to providing information and
resources for some of the higher education benefits service members might be
entitled to that can help either pay for college or repay student loans.
Paying for College
Most people are familiar with the GI Bill, but did you know
that it was the first federal financial aid program? There have been many
changes to the benefits offered through the years, the most recent and
significant being the post-9/11 GI Bill, but the premise remains the same.
Tuition assistance programs are available for active-duty
members of the Air Force, Navy, Army, Marines and Coast Guard. Unused benefits
may be transferable to your spouse or dependent children. Each program is a
little different, so it’s important to know your full eligibility before
applying.
Veterans can also receive tuition assistance for degree and
certificate programs under several programs including the Montgomery GI Bill
Active Duty, Montgomery GI Bill Selected Reserve and the Yellow Ribbon program.
The Veterans Education Assistance Program allows funds from your military pay
to be
placed in a postservice education account where the
government matches every $1 placed in the account with $2. Most states also
offer special education benefits for local veterans.
Almost every state offers some sort of tuition benefit or
scholarship program for its active-duty or veteran residents. Most of these
programs are fairly generic and similar in eligibility criteria, but some have
additional programs that are very specific.
Texas, for example, offers in-state tuition rates to most
service members. This is a pretty common state benefit, but Texas also offers
free tuition, books and room and board to those who have at one time been
classified as prisoners of war.
Repaying Student Loans
Most service members who serve for a little over three years
and continue into the military reserves or other types of domestic national
service programs can have up to $18,000 in student loans repaid under the
National Call to Service Program. Most of the military branches also offer a
Department of Defense student loan repayment program that will contribute, in
some cases, up to $65,000 toward student loans.
The Servicemembers Civil Relief Act has been in the news
quite a bit lately thanks to the recent settlement paid by Sallie Mae in answer
to allegations that the company made it difficult for eligible student loan
borrowers to claim the benefits allowed under this program.
The law caps the interest rate on any debt received before
military service at 6 percent. Note that service members have to notify the
loan holder of their eligibility and in many cases provide proof of active-duty
service to obtain this benefit. The settlement will require Sallie Mae to
streamline this process for borrowers, and add more phone staff versed in the
benefits available under the law.
Those borrowers with federal direct loans are actually given
a zero percent interest rate on loans made on or after Oct. 1, 2008 if serving
in a hostile area. Finally, military members can defer their federal Study loan while on
active duty by applying, or having their representative apply for, a military
service deferment. This will keep your loans from coming due for payment during
certain periods of active-duty service, and for six months after you’ve been
demobilized.
State and federal governments do quite a bit to help members
of the U.S. armed forces and their families manage higher education costs. The
problem is that information on these benefits can be difficult to find.
You can find more information on all the higher education
benefits for service members, veterans and their families in SALT’s new e-book,
"The Military Smartbook for Defeating Student Debt."
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