Military Service in an Area of Hostilities
To qualify for cancellation due to service in an area of hostilities:
- you must be serving a period of full-time active duty in the US armed forces, and
- your service must be in an AREA OF HOSTILITIES or an AREA OF IMMINENT DANGER that qualifies for special pay under Section 310 of Title 37 of the U.S. Code, and
- your Commanding Officer must certify your service dates, and
- you must serve a COMPLETE year; service for less than a complete year or any fraction of a year beyond a complete year does not qualify.
Armed Forces of the Unites States include:
- Army
- Navy
- Air Force
- Marine Corps
- Coast Guard
- National Guard (serving a period of full-time active duty)
- Reserves (serving a period of full-time active duty)
Rate of Cancellation
Any interest that may have accrued during the year of eligible employment will be canceled. In addition, the following percentages of the original principal loan amount will be canceled.
| Years of Cancellation | Rate of Cancellation |
|---|---|
| First year | 15% |
| Second year | 15% |
| Third year | 20% |
| Fourth year | 20% |
| Fifth year | 30% |
Return to Cancellation Page
