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Benefits for Military Servicemembers

Benefits for Military Servicemembers . Kerry Childe Privacy and Regulatory Counsel TG. Disclaimer.

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Benefits for Military Servicemembers

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  1. Benefits for Military Servicemembers Kerry ChildePrivacy and Regulatory CounselTG

  2. Disclaimer The opinions expressed during this presentation are my own and not necessarily those of TG or any other party. This presentation is not intended, nor should it be construed, to provide legal advice. If you have questions about how these rules apply to your program, please consult your program’s legal counsel.

  3. Agenda Servicemembers Civil Relief Act HEROES Act Waivers Veterans Disability Discharge Deferments Military/Department of Defense (DoD) Repayment

  4. Servicemembers Civil Relief Act (SCRA) • History of the SSCRA and SCRA • Servicemembers eligible for benefits • Servicemember • Spouse • HEA endorser

  5. SCRA • Benefits under SCRA • General servicemember benefits • HEA-specific benefits • Loans eligible for benefit • Interest rate capped at 6% • Effects on borrower/endorser and lender/servicer • Proposed Rule/Final Rule

  6. Higher Education Relief Opportunities for Students (HEROES) Act of 2003 • The Higher Education Relief Opportunities for Students Act of 2003 (P.L. 108-76) provided the Secretary of Education with specific waiver authority to respond to war or other military operation, or national emergency. • Authorized actions

  7. Military extension of the grace period • Qualifications • Must be in grace or in-school status • Must have been member of a reserve component of the U.S. Armed Forces called or ordered to active duty on or after October 1, 1998 • Active duty period must be more than 30 days • Duration • Any one extension cannot exceed three years

  8. Mandatory forbearances • Servicemember qualifies for partial repayment under the Student Loan Repayment Programs administered by the DoD • Servicemember is on active military state duty as a member of the National Guard

  9. Veterans disability discharge Effective August 14, 2008 Discharge Standards Service-connected disability or disabilities that are 100% disabling Unemployable due to service-connected condition

  10. Veterans disability discharge • Required documentation • Veteran Affairs Rating Decision or letter confirming borrower met one of the discharge standards • Discharge application • Discharge is immediate

  11. Current deferments • Military service deferment • Post-active duty deferment

  12. Military service deferment • Program: FFELP, FDLP, andPerkins • Service: Active dutyin the U.S. Armed Forces • Borrower: • For borrowers with 10/1/2007 active duty • Deferment is loan-specific for loans disbursed on or after 7/1/2001 (but see also CCRAA)

  13. Military service deferment • Request: From borrower to lender/servicer • Must provide the lender/servicer with all documentation required to establish eligibility • May use MIL (Military Deferment) request form • Length: 12 months without other documentation • Ends 180 days after the end of borrower’s mobilization (borrower with 10/1/2007 active duty)

  14. Military service deferment • Important statutory/regulatory provisions • 10 U.S.C. 12301(a) [reserves ordered to active duty] • 10 U.S.C. 12301(g) [Reserve is POW/MIA] • 10 U.S.C. 12302 [Ready Reserve — largest] • 10 U.S.C. 12304 [Selective Reserve/ Inactive Ready Reserve] • 10 U.S.C. 12306 [Standby Reserve]

  15. Military service deferment • Important statutory/regulatory provisions • 10 U.S.C. 688 [Retirees activated for duty] • 10 U.S.C. 101(a) and (d) [definitions] • 32 U.S.C. 502 [required drills and training exercises]

  16. Military service deferment — borrower orders

  17. Military service deferment — borrower orders

  18. Military service deferment — borrower orders

  19. Military service deferment — borrower orders

  20. Military service deferment — borrower orders

  21. Post-active duty deferment • Program: FFELP, FDLP, andPerkins • Service: National Guard or other reserve componenton active duty on or after 10/01/2007 • Borrower: Enrolled and called to qualifyingactive duty

  22. Post-active duty deferment • Request: From borrower to lender/servicer • Lender requests documentation; may accept orders/ID • Length: 13 months following completion of qualifying active duty • Grace period and deferment run concurrently

  23. Old deferments • Old Armed Forces deferment • Old public health service deferment • Old National Oceanic and Atmospheric Administration (NOAA) Corps deferment

  24. Old Armed Forces deferment • Program: FFELP, FDLP, andPerkins • Service: Active dutyin U.S. Armed Forces • Borrower: Prior FFELP or PLUS loans • Public service deferment

  25. Old Armed Forces deferment • Request: From borrower to lender/servicer • Letter from commander OR • Copy of orders and copy of military ID • PUB form can be used

  26. Old Armed Forces deferment • Length: • Originally had maximum three years lifetime benefit • Includes any old deferments • HEROES waivers (time served as affected individual)

  27. Old public health service deferment • Program: FFELP, FDLP, andPerkins • Service: Commissioned Officer in PHS • Borrower: Prior FFELP or PLUS loans • Public service deferment

  28. Old public health service deferment • Request: From borrower to lender/servicer • Written statement from authorized PHS official • Must include service dates • May use PUB deferment request form • Length: Maximum three years lifetime benefit • Includes any old deferments

  29. Old NOAA Corps deferment • Program: FFELP, FDLP, andPerkins • Service: Serving in NOAA Corps • Borrower: No pre-1987 outstanding balance • Public service deferment

  30. Old NOAA Corps deferment • Request: From borrower to lender/servicer • Written statement from authorized NOAA official • Must include service dates • May use PUB deferment request form • Length: Maximum three years lifetime benefit • Includes any old deferments

  31. Other military benefits • Public service loan forgiveness (FDLP only) • College Loan Repayment Program (loans before service) • DoD Loan Repayment Program (civilian employees)

  32. Contact information Kerry Childe, TG 512-219-2921 kerry.childe@tgslc.org

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