1. Benefits for Military Servicemembers Kerry Childe Privacy and Regulatory Counsel TG

2. Disclaimer The opinions expressed during this presentation are my own and not necessarily those of TG or any other party. This presentation is not intended, nor should it be construed, to provide legal advice. If you have questions about how these rules apply to your program, please consult your program’s legal counsel.

3. Agenda Servicemembers Civil Relief Act HEROES Act Waivers Veterans Disability Discharge Deferments Military/Department of Defense (DoD) Repayment

4. History of the SSCRA and SCRA Servicemembers eligible for benefits -Servicemember -Spouse -HEA endorser Servicemembers Civil Relief Act (SCRA)

5. SCRA Benefits under SCRA –General servicemember benefits –HEA-specific benefits Loans eligible for benefit Interest rate capped at 6% Effects on borrower/endorser and lender/servicer Proposed Rule/Final Rule

6. Higher Education Relief Opportunities for Students (HEROES) Act of 2003 The Higher Education Relief Opportunities for Students Act of 2003 (P.L. 108-76) provided the Secretary of Education with specific waiver authority to respond to war or other military operation, or national emergency. Authorized actions

7. Military extension of the grace period Qualifications –Must be in grace or in-school status –Must have been member of a reserve component of the U.S. Armed Forces called or ordered to active duty on or after October 1, 1998 –Active duty period must be more than 30 days Duration –Any one extension cannot exceed three years

8. Mandatory forbearances Servicemember qualifies for partial repayment under the Student Loan Repayment Programs administered by the DoD Servicemember is on active military state duty as a member of the National Guard

9. Veterans disability discharge Effective August 14, 2008 Discharge Standards –Service-connected disability or disabilities that are 100% disabling –Unemployable due to service-connected condition

10. Veterans disability discharge Required documentation –Veteran Affairs Rating Decision or letter confirming borrower met one of the discharge standards –Discharge application Discharge is immediate

11. Current deferments Military service deferment Post-active duty deferment

12. Military service deferment Program: FFELP, FDLP, and Perkins Service: Active duty in the U.S. Armed Forces Borrower: –For borrowers with 10/1/2007 active duty –Deferment is loan-specific for loans disbursed on or after 7/1/2001 (but see also CCRAA)

13. Military service deferment Request: From borrower to lender/servicer –Must provide the lender/servicer with all documentation required to establish eligibility –May use MIL (Military Deferment) request form Length: 12 months without other documentation –Ends 180 days after the end of borrower’s mobilization (borrower with 10/1/2007 active duty)

14. Military service deferment Important statutory/regulatory provisions –10 U.S.C. 12301(a) [reserves ordered to active duty] –10 U.S.C. 12301(g) [Reserve is POW/MIA] –10 U.S.C. 12302 [Ready Reserve — largest] –10 U.S.C. 12304 [Selective Reserve/ Inactive Ready Reserve] –10 U.S.C. 12306 [Standby Reserve]

15. Military service deferment Important statutory/regulatory provisions –10 U.S.C. 688 [Retirees activated for duty] –10 U.S.C. 101(a) and (d) [definitions] –32 U.S.C. 502 [required drills and training exercises]

16. Military service deferment — borrower orders

21. Post-active duty deferment Program: FFELP, FDLP, and Perkins Service: National Guard or other reserve component on active duty on or after 10/01/2007 Borrower: Enrolled and called to qualifying active duty

22. Post-active duty deferment Request: From borrower to lender/servicer –Lender requests documentation; may accept orders/ID Length: 13 months following completion of qualifying active duty –Grace period and deferment run concurrently

23. Old deferments Old Armed Forces deferment Old public health service deferment Old National Oceanic and Atmospheric Administration (NOAA) Corps deferment

24. Old Armed Forces deferment Program: FFELP, FDLP, and Perkins Service: Active duty in U.S. Armed Forces Borrower: Prior FFELP or PLUS loans –Public service deferment

25. Old Armed Forces deferment Request: From borrower to lender/servicer –Letter from commander OR –Copy of orders and copy of military ID –PUB form can be used

26. Old Armed Forces deferment Length: –Originally had maximum three years lifetime benefit –Includes any old deferments –HEROES waivers (time served as affected individual)

27. Old public health service deferment Program: FFELP, FDLP, and Perkins Service: Commissioned Officer in PHS Borrower: Prior FFELP or PLUS loans –Public service deferment

28. Old public health service deferment Request: From borrower to lender/servicer –Written statement from authorized PHS official –Must include service dates –May use PUB deferment request form Length: Maximum three years lifetime benefit –Includes any old deferments

29. Old NOAA Corps deferment Program: FFELP, FDLP, and Perkins Service: Serving in NOAA Corps Borrower: No pre-1987 outstanding balance –Public service deferment

30. Old NOAA Corps deferment Request: From borrower to lender/servicer –Written statement from authorized NOAA official –Must include service dates –May use PUB deferment request form Length: Maximum three years lifetime benefit –Includes any old deferments

31. Other military benefits Public service loan forgiveness (FDLP only) College Loan Repayment Program (loans before service) DoD Loan Repayment Program (civilian employees)

32. Contact information Kerry Childe, TG 512-219-2921 kerry.childe@tgslc.org

33. Questions? This presentation is available for download at www.tgslc.org/tgconference.