Armed Forces Loan Forgiveness Program

Much has been said about the brave and dedicated men and women who serve in the armed forces. Yet, how often do we really do anything that significantly improves their lives? We call them heroes, we wave as they march in parades, and we place flowers on their graves on Memorial Day.

But, doing something to improve their lives would be much more appreciated. With that in mind, the Armed Forces Loan Forgiveness Program was instituted after 11 September 2001. The concept of the Armed Forces Loan Forgiveness Program is that it allows student’s with a loan to get a one-off forgiveness of a maximum of $2,500.

The chief stipulation of the program is that the serviceman or woman has to have been on active duty between 11 September 2001 and 30 June 2008. That may seem a rather limited period and amount, but the program is not funded by the government in any way; it is entirely a private organization.

The Pennsylvania Higher Education Assistance Agency (PHEAA) operates the program, and it

PHEAA is willing to honor AES, Stafford, PLUS, HEAL, Consolidation, SLS, and Keystone EXTRA loans. So long as the money is given out before the June 30th deadline, it can be applied to the program. Also, the loan must be paid up to date. If it is in default, then it is not eligible.

Finally, the last aspect of the Armed Forces Loan Forgiveness Program is that the loan holder has to be connected to the state of Pennsylvania. There are four options. First, the loan holder can be a current resident of the state. Second, the serviceman or woman can be a non-resident who was attending a Pennsylvania college, and left it to go on active duty.

Third, the service personnel can still be a non-resident, so long as they were living in the state when they enlisted in the armed forces. And finally, if you attended a state college and then enlisted in the military right after school, you will be eligible even if not resident. So long as the military personnel can meet these requirements, they can get a loan forgiveness.

The application process is fairly simple and straightforward. If the serviceman or woman goes online to the PHEAA web site – www.pheaa.org, they can download a pdf that has the necessary form. Once they fill it out, they need only send it to the PHEAA Armed Forces Loan Forgiveness Program address: AES Loan Forgiveness Group, Post Office Box 2461, Harrisburg, Pennsylvania 17105-2461.

They also have an 800 number people can call if they have any questions: 1-800-233-0557. One critical factor regarding of the program is that the application must be submitted before 31 December of 2008. So, while it is not much, after all, $2,500 is not that big a sum is the grand scheme of things.

Yet, for a serviceman or woman, even a small amount of money can help them on the journey of their life. That is why the Armed Forces Loan Forgiveness Program is so much help for so many people.