Money Monday

first_imgBy Barbara O’NeillHow can service members defer student loan payments?An important factor for service members to keep in mind is that they may be eligible for a deferment only if they have not already defaulted on their loans. The type of deferment provided varies depending on the type of loan the service member is paying. All three loan types—Federal Family Education Loan (FFEL), Direct, and Perkins—may be deferred while the service member is on active duty during a war or other military operation or national emergency. Active duty personnel would include members of the National Guard or Reserves who were called to active duty service.There is no time limit on the military deferment, but the eligibility period ends 180 days after the borrower has returned from active duty service. In cases where the borrower is not eligible for deferment, he or she may apply for forbearance. There are provisions for a mandatory forbearance for National Guard members who qualify for post-active duty deferment.For more information, refer to more military personal finance blog posts and webinars by experts.Follow Dr. O’Neill on Twitter!This post was published on the Military Families Learning Network Blog on June 10, 2013last_img

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