Winter 2004-05
American Collegiate Financial Services reminds us that, according to Federal regulations, mobilized military personnel – including those on active duty, National Guard and Ready Reserves called to active duty – are not required to make student loan payments during their absences. This applies to the 145,000 troops currently involved in the Middle East conflicts, representing a significant percentage of student loan borrowers.
The Department of Education has directed student loan lenders to continue deferment status for all activated service members who recently left school or who were students prior to deployment.
Borrowers holding subsidized student loans are eligible to have the federal government assume the interest payments on their loans while deployed. Similarly, the Department of Education has encouraged colleges and universities to provide full refunds of tuition and related expenses to students required to withdraw from school and fulfill their military obligations.