Military Service Cancellation

A borrower may qualify to have a portion of his or her loan canceled for serving a period of full-time active duty in the U.S. Armed Forces (that is U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard). A member of the National Guard or the Reserves serving a period of full-time active duty in the armed forces may also eligible. The service must be in an area of hostilities or in an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The borrower’s commanding officer must certify the borrower’s service dates. Service for less than a complete year does not qualify. A complete year of service is 12 consecutive months.

The Department of Defense maintains an updated listing of hostile fire/imminent danger pay areas at the following site: Hostile fire areas

Download a Request for Cancellation

U.S. Army Loan Repayment Program

It is useful to know that the U.S. Army offers a loan repayment program as an enlistment incentive. If a borrower of a Federal Perkins Loan serves as an enlisted person in the U.S. Army, in the Army Reserves, or in the Army National Guard, the U. S. Department of Defense will repay a portion of the loan. For more information, the student should contact his or her local military recruiting office. This is a recruitment program, not a cancellation, and does not pertain to an individual’s prior Army service.