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Fed Collaboration Raises Awareness of Zero Interest Student Loan


Federal Collaboration Raises Awareness of Zero Percent Interest Student Loan Benefit for Military Service

The Department of Defense is collaborating with the Departments of Education (ED) and Veterans Affairs to educate service members and veterans about a significant student loan benefit based on their military service. Federal law exempts members of the military from paying interest for up to 60 months on certain student loans while serving or having served in an area that qualifies them to receive hostile fire or imminent danger pay. Service members and veterans can also apply retroactively based on previous qualifying military service. This benefit applies to direct loans or a portion of a direct consolidation loan made on or after Oct. 1, 2008.
“The DOD is excited to collaborate with our federal partners to make sure members of the uniformed services are aware of this education benefit and know how to take advantage of it,” said Fred Drummond, deputy assistant secretary of defense for force education and training. “It’s also important for service members and veterans to know that if they overpaid student loan interest they can take action to get a refund.”
To build awareness of the benefit among military borrowers, the DOD joined forces with ED and the VA on a multifaceted communications campaign to reach service members and veterans, and their families, through a variety of platforms.
Taking advantage of this student loan benefit is simple and straightforward. Eligible active duty, National Guard, and Reserve service members and veterans can take these actions to avoid student loan interest:
1.    Check your loan type and servicer by logging in to “My Federal Student Aid” at

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