Perkins Loan Services
The College Cost Reduction and Access Act of 2007 (CCRAA) and the Heroes Act made some major changes in the provisions for military deferments.
- Military Service Deferment
- A borrower who is serving on active duty or performing qualifying National Guard duty in connection with a war, military operation, or national emergency does not need to pay principal or interest on Perkins loans.
- Deferment begins on the date of mobilization and ends 180 days after the demobilization date for mobilization dates that include Oct. 1, 2007 or have begun since Oct. 1, 2007. This is available each time a borrower is demobilized after qualifying service.
- The qualifying service is period of mobilization.
- The three-year limit has been removed.
- This is available to all outstanding loans in repayment as of Oct. 1, 2007.
- Active Duty Student Deferment
- Qualifying students are members of the National Guard, Armed Forces Reserves, and retired members of the Armed Forces.
- Students must be enrolled in postsecondary school or within six months prior to activation.
- This is a 13-month deferment following the completion of their active duty military service.
- Students do not need to be activated during a war, national emergency, or other military operation.
- National Guard members are eligible if activated by the state under federal approval or if activated by the state under state statue or policy.
Some borrowers may be eligible for both of the above deferments. If so, the overlapping time periods will run concurrently.