Veteran Student Loan Forgiveness: How To Get It

• Veterans can qualify for several forgiveness programs through the Department of Education, including PSLF, TPD Discharge, and IDR Forgiveness.

• Your periods of active duty in military service can count toward PSLF, even if loans were in deferment or forbearance during that time.

• Veterans can certify disability status for TPD Discharge through the VA, SSA, or a licensed medical professional.

If you’re a veteran, whether you served as a soldier, marine, airman, sailor, or coast guard member, you may qualify for student loan forgiveness programs. Here are the key options available:

1. Public Service Loan Forgiveness Program: Veterans who worked full-time for a qualifying employer (government agency, nonprofit, or the military) can have their remaining loan balance forgiven after 120 qualifying payments.

2. Total and Permanent Disability Discharge: Forgives your loan up to 100% by providing proof through the VA.

3. Income-Driven Repayment Plan Forgiveness: Any remaining loan balance is forgiven after 20–25 years of payments under an IDR plan.

These are some of the available options for veterans like you, but wait, there’s more. A few student loan repayment programs can also help cover your federal and private debt payments. Read on to learn more about these programs.

Related:

• ‍Am I Eligible for Student Loan Forgiveness at Age 65?

• VA Student Loan Forgiveness for Employees

The most popular option for veterans is Public Service Loan Forgiveness, which can completely wipe out your remaining loan balance tax-free once you meet the requirements.

There are also other great programs, like the Total and Permanent Disability discharge for veterans with qualifying disabilities and Income-Driven Repayment forgiveness, which helps keep payments affordable and forgives the rest of your balance after 20 or 25 years.

Each program has its own rules and application steps, so take your time to review the details as we discuss them below and make sure you’re getting the most out of these opportunities.

Veterans can also visit studentaid.gov to explore additional options that may be available based on their unique circumstances and needs.

Related: How to Apply For Student Loan Forgiveness

If you’re a veteran, active-duty service member, or working in a public service role, the Public Service Loan Forgiveness can help erase your student loan debt as long as you meet the program’s requirements.

Here’s how you can qualify for PSLF as a veteran:

• Employer: If you’ve worked for the military, VA hospitals, government agencies, or nonprofits, you’re likely eligible. These jobs often meet the requirements for public service under PSLF.

• Type of Loan: Only Federal Direct Loans qualify. If you have FFEL or Perkins Loans, you’ll need to consolidate them into a Direct Loan first. Learn more in our Student Loan Consolidation Guide.

• Payment Plan: You should be on an Income-driven repayment plans, as they are the best option for PSLF and for your monthly payments. These plans calculate loan payments based on your discretionary income.

• Commitment: Veterans must make 120 qualifying monthly payments, typically over 10 years of full-time public service. Periods of active-duty military service can count toward PSLF, even if loans were in deferment or forbearance during that time.

How Veterans Can Apply for PSLF

1. Documentation: You need to acquire DD-214 (Certificate of Release or Discharge from Active Duty) that serves as proof of military service to certify and earn PSLF credit. Use the National Archives eVetRecs tool to request your military service records online.

2. Submit the PSLF Form: Use the PSLF Help Tool on the Federal Student Aid website to submit your application and verify your employment. You can download the PSLF form in our Forms and Application Guide.

3. Await Processing: The Department of Education will review your application; expect potential delays due to high volumes of applications

Related: PSLF Updates 2024

The Total and Permanent Disability Discharge is a program that aims disabled vets to have 100% student loan forgiveness if they can prove their disability leaves them unable to maintain employment and met the other qualifications.

Here’s what to know about the program:

• Eligibility: To qualify, veterans must prove total and permanent disability. A 100% VA disability rating or a total and permanent disability designation can simplify the process. See the list of qualifying disabilities in this guide.

• Disability Certification: Veterans can certify their disability status through the Department of Veterans Affairs (VA or the Social Security Administration (SSA), which can confirm eligibility for SSDI or SSI. Veterans can also get a certification from a licensed medical professional.

• Loan Types Covered: The TPD Discharge applies to various federal student loans, including Direct Loans, Federal Family Education Loans (FFEL), and Federal Perkins Loans. Private student loans are not covered under this program.

How Veteran Disability Ratings Work

Veteran disability ratings are a system used by the U.S. Department of Veterans Affairs to evaluate the severity of service-connected disabilities and determine the compensation benefits a veteran is entitled to receive. Here’s a detailed overview:

• 70% Disabled Veteran: Veterans with a 70% disability rating can qualify for Total Disability based on Individual Unemployability (TDIU) if they cannot maintain substantial gainful employment due to service-connected disabilities. At least one disability must be rated at 40% or higher.

• 80% Disabled Veteran: Veterans with an 80% disability rating can receive benefits at the 100% disability rate through TDIU if they cannot maintain substantial gainful employment due to service-connected disabilities.

• 100% Disabled Veteran: Veterans with a 100% disability rating are considered totally disabled and receive maximum VA compensation. But, the rating is not always permanent unless the VA designates it as a total and permanent disability. Without this designation, the VA may re-evaluate the rating.

If the VA grants you a 100% rating or determines total permanent disability, you can apply for the TPD Discharge through the U.S. Department of Education’s website or by contacting Nelnet, a TPD Discharge loan servicer.

For a quick guide, check out our article: How to Qualify for Total and Permanent Disability Discharge

If you don’t qualify for the PSLF program or TPD loan discharge, Income-driven repayment forgiveness could be a great option for managing your student loans. These plans base your monthly student loan payments on your income and family size instead of your total loan balance.

Here’s how it works for veterans:

• Who’s Eligible: IDR forgiveness is available to all federal loan borrowers, so whether you stay in public service or move into a private-sector role, you can benefit.

• Affordable Payments: Your monthly payments are capped at a percentage of your discretionary income (your income after taxes and essential expenses).

• Forgiveness Timeline: Depending on the plan—like the SAVE Plan or Pay As You Earn (PAYE)—and your loan type, any remaining balance is forgiven after 20 or 25 years of qualifying payments.

Most veterans are eligible for PSLF, the most common and faster forgiveness program, but IDR forgiveness offers flexibility, making it a solid option for those pursuing different career paths after military service.

If you want more choices, take a look at these programs below and apply if they fit your situation:

• Borrower Defense to Repayment: Many colleges and universities have been accused of exploiting military veterans by using their education benefits, such as the GI Bill, for low-quality programs with poor graduation rates. Some were fraudulent for-profit schools that were later shut down, while others included state universities and community colleges. The Borrower Defense to Repayment rule provides federal loan forgiveness if a school used illegal recruiting, lied to pressure enrollment, or failed to provide a quality education.

• Servicemembers Civil Relief Act: A federal law that provide various protections to active-duty military members. The benefits does not extend to retired service members but, veterans who are called back to active duty may request relief under the SCRA provisions. It caps the interest rate of lenders at 6% during a borrower’s active duty military service.

• Interest Waiver: The U.S. Department of Education has partnered with the Department of Defense to automatically waive interest on student loans for over 47,000 military members and veterans who received imminent danger or hostile fire pay. This waiver, effective since fall 2021 and retroactive to 2008, enables eligible borrowers to have their interest waived without needing to submit additional paperwork.

• Education Debt Reduction Program: Veterans pursuing a healthcare career may qualify for EDRP, offering $40,000 per year and up to $200,000 in total repayment.

Every branch of the military offers different ways to help with student loans. Here are a few programs you might want to check out:

• Active Duty Army Student Loan Repayment Program: Forgives up to $65,000 of student loans for those who commit to serving for three years, provided their loans are not in default and they meet other requirements.

• Army Reserve Student Loan Repayment Program: Offers up to $20,000 in loan forgiveness for those who serve in the reserves for six years, with private student loans potentially eligible on a case-by-case basis.

• Navy Student Loan Repayment Program: Provides up to $65,000 in student loan forgiveness for sailors who serve for three years.

• Air Force College Loan Repayment Program: Pays off either 33.33% or $1,500 of a borrower’s principal balance each year, with a total cap of $10,000 over three years.

• Coast Guard Loan Repayment Program: Offers up to $30,000 in student loan assistance.

• National Guard Loan Repayment Program: Provides up to $50,000 in assistance for those who enlist for at least six years.

As a veteran who bravely served our country, you deserve relief from the stress of student loans. The Department of Education offers student loan forgiveness programs to help veterans like you find financial freedom and peace of mind. These options are here to honor your service by making your loans manageable—or even eliminating them entirely.

Not sure which program is right for you? We’re here to help. Our experienced student loan lawyers have helped countless veterans secure the relief they need, whether it’s through forgiveness or repayment assistance.

Don’t wait—schedule a consultation today and let us guide you toward a brighter, debt-free future.

Related reading:

• Military Student Loan Forgiveness

• Student Loan Forgiveness for Military Spouses

• Student Loan Forgiveness for Government Employees

• Student Loan Forgiveness for Healthcare Workers

• Student Loan Forgiveness for Mental Health Professionals