July 20, 2007
DC - Active duty soldiers may catch a break on their student loans if a new bill goes into effect. Introduced on Tuesday by Senator Evan Bayh (D-IN), the Interest Relief Act would temporarily suspend interest from accruing on the student loans of active duty soldiers and their spouses for up to five years.
This program would be available to active duty soldiers serving in any military branch, including the National Guard and reserve units, and their spouses, according to Higher Education Washington, Inc.'s NewsLine. The only stipulation is that the student loans must be taken out through the Federal Direct Loan Program, which provides loans directly from the U.S. Department of Education.
Currently, members of the military may defer payments on their student loans while serving on active duty. However, interest still continues to accrue, which can be a costly burden for soldiers to come home to. The Interest Relief Act would help soldiers avoid this financial burden.
According to information from The Evening News and The Tribune, the bill would help soldiers who have been active for 12 to 15 months save an average of $1,183 and save $1,479 in interest while active.
Senator Bayh said, "By deferring interest accrual for those who have student loans, we remove one more hurdle that our soldiers and their families face when they are planning their future after active duty service."
"It's important that we provide the people who put their lives on the line for our country with options for their student loans," said EdFed student loan counselor Jennifer Munson. "This bill will help to alleviate some of the financial burden that student loans can have on people, especially when they, as soldiers, have already made so many sacrifices."
"At EdFed we also provide options to assist any students or graduates with managing their student loan debt with our consolidation programs," said Munson.
To learn more about the services EdFed offers, visit www.edfed.com.
As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.