All Branch Topic (ABT) Federal Student loan and military deferment

[DD214_DOC]

Has anyone applied and been granted this deferment? The eligibility requirements are a tad confusing. It's open to active duty who service is connected to war, natural disaster, or military operation. However, it does not specify what this actually means. Meaning, it doesn't specify that you can only request this during a deployment. Since any of us who current or recently served are technically serving in a time of war, wouldn't all of us qualify?

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[DD214_DOC]

Disregard. I was able to answer this myself.

 

[jabreal00]

Has anyone applied and been granted this deferment? The eligibility requirements are a tad confusing. It's open to active duty who service is connected to war, natural disaster, or military operation. However, it does not specify what this actually means. Meaning, it doesn't specify that you can only request this during a deployment. Since any of us who current or recently served are technically serving in a time of war, wouldn't all of us qualify?

My wife did this federal student loan deferment for residency while she was active duty. She was not deployed. For subsidized loans the federal government will pay the interest while in deferment. For non-subsidized the interest will continue to accrue.

 

[DD214_DOC]

My wife did this federal student loan deferment for residency while she was active duty. She was not deployed. For subsidized loans the federal government will pay the interest while in deferment. For non-subsidized the interest will continue to accrue.

Yep, I just learned about that. I went into repayment a couple times during residency but obviously couldn't afford it, so there were some lates and such being reported. I called a couple days ago and was informed I was given the wrong information (I was put into forebearance instead of deferment) and they fixed it, backdated everything, and removed the negative history.

 

[logankenley]

Not a great financial decision to defer when military service counts as a public service institution so an income based repayment program with public service loan forgiveness is lively a smart option

 

[n3v3rn0]

Not a great financial decision to defer when military service counts as a public service institution so an income based repayment program with public service loan forgiveness is lively a smart option

Fortunately for the tax payer I did not max out the loans I could have gotten and spent the bulk of all earnings during my gap year towards undergrad loans. With a total student loan balance <$40k (doesn't look like my wife's debt can be included in the write off) the hoops over 10 years aren't worth the anticipated $26 in savings.

I explored the option of taking additional med school loans but our financial aid office will not give HPSP students a single dollar despite numerous appeals from various students.


On the original topic:

https://studentaid.ed.gov/sa/types/grants-scholarships/military#va-education-benefits

"For all Direct Loans first disbursed on or after Oct. 1, 2008, no interest will be charged for a period of no more than 60 months while you are serving on active duty"

Sounds like non-subsidized direct loans shouldn't accumulate interest either, both in IBR or deferment

 

[jabreal00]

Not a great financial decision to defer when military service counts as a public service institution so an income based repayment program with public service loan forgiveness is lively a smart option

One has to work in the government for 10 years and be in full repayment during that time to qualify for loan forgiveness. Most HPSP scholarship recipients will be in service less than 10 years (including residency) or will have paid off their loans by that time. The smartest thing is for one who has HPSP to take as little loan as possible in medical school. Start repayment during residency. Accelerate payment while staff. When leaving the military and joining the civilian side negotiate some sort of loan repayment with future potential employers.

I had about $50K in loans combining medical school (I had a 3 year HPSP scholarship) and undergrad after I graduated from medical school. I was fortunate to go to medical school nearby where I grew up so I went from home my last two years of medical school to save money, despite the monthly living stipend from HPSP. I started repayment as an intern and by the time 10 years rolled around my loans were paid off. My wife, put her loans into deferment while in training (4 year residency and 1 year fellowship). Her loans have since ballooned. If I knew her then I would have counseled against this. She seriously regrets doing this.

 

[Homunculus]

One has to work in the government for 10 years and be in full repayment during that time to qualify for loan forgiveness. Most HPSP scholarship recipients will be in service less than 10 years (including residency) or will have paid off their loans by that time. The smartest thing is for one who has HPSP to take as little loan as possible in medical school. Start repayment during residency. Accelerate payment while staff. When leaving the military and joining the civilian side negotiate some sort of loan repayment with future potential employers.

I had about $50K in loans combining medical school (I had a 3 year HPSP scholarship) and undergrad after I graduated from medical school. I was fortunate to go to medical school nearby where I grew up so I went from home my last two years of medical school to save money, despite the monthly living stipend from HPSP. I started repayment as an intern and by the time 10 years rolled around my loans were paid off. My wife, put her loans into deferment while in training (4 year residency and 1 year fellowship). Her loans have since ballooned. If I knew her then I would have counseled against this. She seriously regrets doing this.

also-- if you consolidated with someone other than the government i was told you are also ineligible. luckily i consolidated when rates were ridiculously low, but it's something that certain people could potentially benefit from if you know you're in for the long haul.

--your friendly neighborhood pre-fiscal meltdown consolidated caveman