Military Servicemembers Federal Student Loan Benefits

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1 Military Servicemembers Federal Student Loan Benefits Rob Smith Senior Client Relationship Manager February 2015

2 To America s servicemen and servicewomen Navient has a simple message: thank you for your service Servicemembers have always been there for us when we needed them. The Department of Education and federal student loan servicers recognize and appreciate the sacrifices servicemembers make for our country; we pledge to support them by providing information and access to information. For example, Navient s teams of dedicated customer care representatives can help servicemembers access benefits available on loans, review repayment options, and help them create a plan to manage their student loans while far from home. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 2

3 Benefits for members of the armed forces There are special benefits and repayment options for servicemembers student loans available from the U.S. Department of Education (ED) and the U.S. Department of Defense (DOD). Servicemembers should contact their student loan servicer for additional information on these options, including eligibility information and what documentation should be provided to receive benefits. MyFedLoan.org Navient.com Nelnet.com MyGreatLakes.org Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 3

4 Benefits for members of the armed forces BENEFIT* Servicemembers Civil Relief Act (SCRA) interest rate cap Military service deferment Public service loan forgiveness Deferments after active duty DESCRIPTION Interest on federal student loans obtained prior to your military service is limited to 6% during periods of active duty. The interest rate limitation also applies to any private education loans you may have. You can postpone federal student loan repayment during certain periods of active duty, such as during war, other military operation, or national emergency, and immediately following active duty. You may qualify for forgiveness of the remaining balance of your Direct Loans when you ve made 120 qualifying payments after October 1, 2007, while employed in public service, including military service. You can postpone repayment while you prepare to return to school following your active duty. 0% interest While you are serving in a hostile area that qualifies you for special pay, you do not have to pay interest on Direct Loans made on or after October 1, 2008, for up to 60 months. *Additional benefits may be available on Perkins Loans, which are made by the school you attended. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 4

5 Benefits to share with members of the armed forces BENEFIT* Repayment based on income HEROES Act waiver Department of Defense (DOD) repayment of your loans Veterans total and permanent disability discharge DESCRIPTION Repayment plans that base your monthly payment on your income are available. Under these plans, you may qualify for a low or zero payment amount with the possibility of forgiveness of the remaining balance in the future. While you are on active duty, the Department of Education waives many of the documentation requirements attached to program benefits. For example, if you are on a payment plan based on your income and if military service prevents you from providing updated information on your family size and income you can request to have your monthly payment amount maintained. In certain circumstances, as determined by the DOD, all or a portion of your loans may be repaid by the DOD. If you have a service-connected disability, you may qualify for discharge of your federal student loans. *Additional benefits may be available on Perkins Loans, which are made by the school you attended. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 5

6 Advice for active duty or deployed servicemembers Consider granting power of attorney to an individual you trust to allow them to manage your financial matters, including your student loans. - The person to whom you give power of attorney can sign documents and act on your behalf. - The legal assistance office on your military base can assist with establishing a power of attorney. - As an alternative, you can provide your servicer with the name of the person you approve to receive information about your loan. Establish an account on your servicer s website, which will allow you to view information about your student loan and make payments online. Provide your servicer with your current contact information, including an address, to ease communication. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 6

7 Advice for active duty or deployed servicemembers Make interest payments, even if you have military deferment available to you. This will keep your balance from increasing and could save you money in the long run. Review your repayment options. Repayment plans based on your income may provide a better outcome for your federal student loan(s), as you may qualify for a low payment and loan forgiveness. Sign up for automatic payments to help keep your loan in good standing. Place an active duty alert on your credit report to reduce the risk that you ll become a victim of identity theft. When a business sees an active duty alert on your credit report, it must verify your identity before issuing credit. You may designate a personal representative (a spouse or another trusted person) who can act on your behalf to verify your identity or remove your active duty alert if needed. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 7

8 Useful Student Loan Resources Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 8

9 For Navient-serviced student loans Navient.com/Military Detailed information on the Servicemembers Civil Relief Act (SCRA) benefits, SCRA interest rates, military service deferments, and public service loan forgiveness, including forms and contact information. Navient military benefits team Monday Friday 8 am 8 pm ET 24/7 automated phone support MilitaryBenefits@navient.com Fax Overseas (toll-free) Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 9

10 Federal Student Aid Military Benefits Brochure Anyone may download a copy of the US Department of Education s Federal Student Aid Office brochure at Navient.com/Military Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 10

11 Military.com SCRA Support Website produced by Military Advantage to provide information to US military personnel and their families. Outline of SCRA benefits offered by the US Military to enable service members to devote full attention to duty, including: SCRA insurance protection SCRA taxation protection SCRA interest rate limits SCRA rental and eviction protection Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 11

12 TodaysMilitary.com Education Support TodaysMilitary.com/living/education-support Website produced by the United States Department of Defense Outline of education benefits offered by the US Military that service members can take advantage of during or after service, including: Tuition assistance College fund programs Servicemembers Opportunity Colleges (SOC) Post-9/11 GI Bill Loan repayment programs Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 12

13 Federal Student Aid FED-AID Learn more about what financial aid the US government offers for military service or family members, including: Reserve Officer Training Corps (ROTC) scholarships, Department of Veterans Affairs (VA) Benefits Plus repayment plans, deferment, and forbearance, and other options to help you repay your federal student loans Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 13

14 Additional online resources RESOURCE National Student Loan Data System (NSLDS ) nslds.ed.gov DOD Student Loan Repayment Program Military.com/Resources/ResourcesContent/ 0,13964, ,00.html Servicemembers Civil Relief Act (SCRA) Dmdc.osd.mil/appj/scra/ Equifax - Equifax.com Experian - Experian.com TransUnion - Transunion.com Veterans Disability Discharge Program disabilitydischarge.com DESCRIPTION Find out who is servicing your federal loans with NSLDS s comprehensive database. Information and resources for student loan repayment in various service branches. Get more information about the benefits available through SCRA. These are nationwide consumer reporting agencies where you can place an active duty alert on your credit report. Simply enter active duty alert in the website search box for forms and contact information. Get more information on loan discharge for disabled veterans. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 14

15 Information for Financial Aid Offices Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 15

16 Servicemembers Civil Relief Act The Servicemembers Civil Relief Act (SCRA), formerly known as the Soldiers and Sailors Civil Relief Act (SSCRA), is a federal law that provides protections for military members as they enter active duty Purpose [Sec. 2] The purposes of this Act are (1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and (2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service. It covers issues such as rental agreements, security deposits, prepaid rent, eviction, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosure, civil judicial proceedings, automobile leases, life insurance, health insurance, income tax payments and student loans. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 16

17 2014 requirements for granting SCRA benefits Historically, a borrower (or the borrower s representative) had to provide a servicer with a copy of the borrower s military orders that reflected the borrower s active-duty status, and the borrower then had to make a written request to the servicer In 2014 U.S. Dept. of Education issued guidance to reduce the burden on both borrowers and loan servicers in providing lower interest rate benefits via SCRA - Borrowers can now submit the written request for the SCRA interest rate benefits through or text message - Servicers can now use the Department of Defense s (DOD) Defense Manpower Data Center (DMDC) database to confirm borrower s military service and the dates of that service without further contact with the borrower. Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 17

18 DOD Manpower Data Center (DMDC) Database Under the new procedures, Navient and other loan servicers use the DOD s SCRA website to access the DMDC database Servicers check the names of borrowers against the DMDC and apply the interest rate limitation to the accounts of eligible borrowers without a request from the borrower Servicers use the DMDCgenerated certification information in lieu of requiring a request from the borrower and a copy of the servicemember s military orders Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 18

19 Q&A Rob Smith Senior Client Relationship Manager (t) (c) navient.com Confidential and proprietary information 2015 Navient Solutions, Inc. All rights reserved. 19

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