Borrowers Whose Title IV (Federal) Loans Are In An In-School Status, In-School Deferment Status, or Grace Period Status
If a borrower's loans are in an in-school status, an in-school deferment status, or in a grace period status when the borrower is ordered to active duty or reassigned, the loans must remain in that status during the period of the borrower's active duty service or reassignment, plus the time necessary for the borrower to resume enrollment in the next regular enrollment period that is reasonably available to the borrower, if the borrower wishes to go back to school. However, this maintenance of loan status may not exceed a total of three years including the period of time necessary for the borrower to resume enrollment.
Additionally, if the loan was in a grace period status at the time the borrower was ordered to active duty, the period of time during which the borrower was serving on active duty is excluded and the borrower would receive the full grace period in the future.
Borrowers Whose Title IV (Federal) Loans Are In Repayment (Other Than an In-School Deferment Status)
For borrowers whose loans are in repayment (other than those in an in-school deferment status), a forbearance must be granted for the expected period of the borrower's active duty service, beginning on the first day of active duty, not to exceed one year. (Forbearance postpones or reduces a borrower's monthly payment for a limited and specified period. Interest is charged during a forbearance period, regardless of loan type.) The forbearance must be granted at the borrower's request or request of the borrower's family or another reliable source. The request need not be written and the forbearance can be granted without supporting documentation and without a written agreement. The reasons must be documented in the borrower's loan records. Forbearance beyond the initial period will require supporting documentation and a written agreement unless the U.S. Department of Education provides guidance extending the one-year limitation. During the initial forbearance, servicers are encouraged to examine the borrower's eligibility for a military or other deferment.
Borrowers Whose Loans Are In Default Status
If a borrower is in default, schools and/or the department must cease all collection activities for the expected period of the borrower's military service upon being notified that the borrower has been called to active duty unless the U.S. Department of Education provides guidance extending this period. Collection activities must resume no later than 30 days after the end of the borrower's military service.