HARRISBURG, Pa. (WTAJ)– The U.S. Department of Education has announced that the office of Federal Student Aid (FSA) relinquished interest on student loans for over 47,000 former and currently active-service duty members.
This is made able by a data-match agreement with the U.S. Department of Defense (DOD). The FSA matches their records with the DOD’s personnel records to find which borrowers should receive the benefit.
Under the Higher Education Act, federal loans that were dispersed on or before Oct. 1, 2008, to any military members that are deployed to areas that qualify the members for imminent danger or hostile fire pay do not have to pay interest that has been accused over time.
“Brave men and women in uniform serving our country can now focus on doing their jobs and coming home safely, not filling out more paperwork to access their hard-earned benefits,” said FSA Chief Operating Officer Richard Cordray. “Federal Student Aid is grateful for our strong partnership with the Department of Defense, and we will seek to reduce red tape for service members wherever possible.”
Before this agreement, service members had to file their own requests as well as provide any other additional information in order to receive the benefit.
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