Servicemembers Civil Relief Act (SCRA)
SCRA will cap interest rates at 6% for eligible servicemembers who acquired student loans prior to joining the military, as well as, waive costs and fees during their service. This benefit is applicable to federal loans disbursed on or after August 14, 2008.
Must be a member of the uniformed services on active duty or absent from that duty due to sickness, wounds, leave, or other lawful cause; OR a U.S. citizen serving with a U.S. ally force in the prosecution of a war or military action, if such service is similar to "military service" as defined under the SCRA.
Uniformed service includes:
Loans (including consolidation loans) must have been obtained prior to the date that you began serving on active duty.
|How to apply||
If we identify through the Defense Manpower Data Center (DMDC) website that you meet the eligibility requirements, we will automatically apply the SCRA benefit to your eligible loans. We will also continue monitoring your account to ensure that your interest rate does not exceed 6% and your fees and costs are waived while you are serving on active duty.
If you are unsure if you are receiving the SCRA benefit, you or a legal representative can call us toll free at 1-800-233-0557 for additional information.
If you are not receiving the SCRA benefit, you or a reliable third party can contact us to apply for the SCRA benefit by one of the following methods:
You may send this information by one of the following methods:
Fax: (717) 720-3916
Mail: American Education Services
To learn more about SCRA benefits, contact your Judge Advocate General's Corps Office.
Reduced Payment and Loan Forgiveness Options
There are options available to lower your monthly payment amount! You may even be eligible for partial or complete loan forgiveness.
Public Service Loan Forgiveness (PSLF)
If you are currently employed by a U.S. federal, state, local or tribal government or a qualifying non-profit organization (including U.S. military service), your loans may qualify for the PSLF program. To learn more about the PSLF program, visit our website or StudentAid.gov/PSLF.
Income-Based Repayment (IBR) Plan
Under the IBR plan, your monthly payments are personalized just for you. The payments are based on your adjusted gross income, loan balance, family size, and your state of residence. This plan also offers loan forgiveness after 25 years of qualifying payments.
Income-Driven Repayment (IDR) Program Changes
On April 19, 2022, the U.S. Department of Education (ED) announced several changes and updates related to IDR plans to include adjustments to borrower accounts, several one-time loan forgiveness actions, and new policies. If you wish to benefit from the recent changes, you will need to consolidate your commercially held Federal Family Education Loan Program (FFELP) loans into a Direct Consolidation Loan no later than May 1, 2023. These adjustments are expected to be implemented in July 2023. For more information, please visit StudentAid.gov.
Income Sensitive Repayment
This repayment plan is only for FFELP loans and factors in your monthly gross income.
To see if any of these plans are viable options, check out the Manage Repayment tool in Account Access to get estimated monthly payment amounts.
Total and Permanent Disability (TPD) Discharge
You may qualify for Total and Permanent Disability (TPD) discharge if you are a veteran who has been determined to be unemployable due to a service-connected condition.
A TPD discharge cancels your obligation to repay the balance of your student loans. If you are a veteran, you must have documentation from the U.S. Department of Veterans Affairs (VA) showing that the VA has determined that you are unemployable due to a service-connected disability.
As a servicemember, if you are experiencing financial difficulties you may qualify for deferment or forbearance.
Depending on your circumstance and qualifications, a deferment or forbearance will postpone your repayment obligation when facing a financial hardship; however, interest will still continue to accrue and may capitalize (added to the principal balance of your loan(s)) at the end of the deferment or forbearance period. This may increase the amount you pay over the life of the loan.
Even though a deferment or forbearance may postpone your repayment obligation, we recommend exploring your repayment plan options first. Certain plans may offer you a lower payment option (as low as $0) and keep you on track to paying off your loans faster. You may even qualify to have a portion of your loan forgiven.
Sign in to Account Access and take our Eligibility Quiz to help you determine the best option to fit your circumstance.
Do you have Private Education Loans?
Find out what special benefits are available for these loans.