Zero Percent Student Loan Interest Relief

Service members are exempt from paying interest for up to 60 months on certain student loans while serving in an area that qualifies them for special pay. Service members and veterans may receive a refund if they overpaid interest during previous periods of qualifying service.

The Department of Defense, Department of Education and Department of Veterans Affairs are working to inform eligible military borrowers of this benefit and how to take advantage. Check out the facts and learn how to apply for zero percent student loan interest relief or receive a refund.

Determine Eligibility 

The zero percent provision applies to Direct Loans or a portion of a Direct Consolidation Loan made on or after Oct. 1, 2008. Se rvice members are eligible during any time the y received hostile fire or imminent danger pay.

Review Earning Details for Special Pay 

Service members need to identify if they are eligible by reviewing past leave and earning statements to determine if they received hostile fire or imminent danger pay.

Take Advantage 

Eligible active duty, Reserve, and National Guard members and veterans can take advantage of this benefit to stop interest from accruing, or receive a refund for prior overpayments of interest:

Check your loan type and loan servicer by logging in to My Federal Student Aid.

  1. ÌProvide loan servicers with any of the following forms of proof: A leave and earnings statement showing receipt of hostile fire or imminent danger pay
  2. A certifying official’s statement and signature
  3. Military orders showing service in a hostile area

Many loan servicer websites have a dedicated information page for Service members that provides details and assistance.