How does the Servicemembers Civil Relief Act affect my student loan interest rates?
During your period of active duty, the Servicemembers Civil Relief Act (SCRA) establishes a maximum interest rate of 6% on any student loans borrowed by you prior to your military service.
This student loan interest rate also applies to any private education loans you may have borrowed prior to your service dates.
What do I need to send my lender in order to qualify for the Servicemembers Civil Relief Act interest rate cap of 6%?
To qualify for the 6% interest rate cap, you need to provide your lender or loan servicer a written notice and a copy of the military orders calling you to or extending your military service.
What is the Military Service Interest Waiver?
The Montgomery GI Bill - Active Duty (MGIB-AD) is an educational benefit for eligible veterans and sercvicemembers who have at least two years of active duty service. You usually have 10 years to use your MGIB benefits, but the time limit can be fewer or more years depending on the situation.
MGIB-AD may provide up to 36 months of financial benefits for:
Technical or Vocational Courses
Licensing & Certification Tests
Certain Entrance Examinations
To learn more call toll free 1-888-GI-BILL-1 or go online to: www.gibill.va.gov
You can apply by filling out VA Form 22-1990, Application for Education Benefits.