There are several higher education benefits for members of the military and their families. However, they come from many sources and apply to both tuition payments and student loan repayment, so we’ve compiled the most common ones here for a single point of reference when you are counseling eligible students.
GI Bill benefits: There are many tuition assistance programs that comprise the GI Bill. Eligibility varies based on branch and type of service. Service members can use an online tool to explore available options and apply to receive benefits. The list of possibilities includes:
- Tuition assistance for undergraduate, graduate, job training, and foreign programs
- Montgomery GI Bill Active Duty and Montgomery GI Bill Selected Reserve benefits
- Survivors’ and dependents’ assistance
- Tuition Assistance Top-Up (covers tuition costs exceeding regular benefit)
- $600 Buy-Up program (additional money paid monthly direct to the student)
- Edith Nourse Rogers STEM Scholarship (additional tuition assistance to qualified service members and their dependents)
- Tutorial assistance – academic support for service members receiving GI benefits
Pell Grant: Dependents of deceased service members may be eligible for the maximum Pell Grant regardless of their Student Aid Index (SAI), if they meet the following criteria:
- They meet the Pell Grant eligibility requirements other than SAI
- They have a parent or guardian that died in the line of duty while either (a) serving on active duty as a member of the U.S. Armed Forces on or after September 11, 2001; or (b) actively serving as and performing the duties of a public safety officer
- They are under 33 years old as of January 1 of the year prior to the start of the school year (i.e. January 1, 2025, for the 2025-26 school year)
Reserve Officer Training Corp. (ROTC): If your institution participates, students can earn merit-based scholarships while they develop skills for future military service. Each branch (Airforce, Army, Marines, Navy) has its own program. Students that successfully complete the program, attain the rank of officer.
Veterans Service Organizations: Many private agencies offer scholarships to active-duty members, veterans, and/or their families. Some of these organizations are:
Federal Student Loan Relief: Current service members and veterans may qualify for assistance with federal student loan repayment. Benefits range from interest rate caps for specified periods to loan repayment assistance in the form of lump sum payments. For each benefit, service members will need to document eligibility (military service, deployment status, disability information).
- Service Member Civil Relief Act (SCRA) caps the interest rate on federal loans borrowed before military service at 6% during periods of active duty. This benefit may also be offered by private lenders.
- 0% Interest for up to 60 months on federal direct loans disbursed on or after October 1, 2008, while the borrower is serving in a hostile area that qualifies for special pay.
- Military Service Deferment on federal student loans and some private loans during certain periods of active duty and immediately following active duty.
- National Guard/Reserves Deferment on federal student loans for reservists currently enrolled at least half time at an eligible institution or within six months of leaving eligible enrollment when called to active duty.
- Heroes Act Waiver for members participating in an income-based repayment program while on active duty. The waiver is for documentation generally required on an annual basis when the service member is unable to provide it due to their deployment. Members can request that their monthly payments continue as calculated based on prior documentation until they are able to submit updated information.
- Department of Defence (DOD) Loan Repayment on behalf of the member under certain circumstances. Documentation varies and there is an application process. Members should contact their designated Military Personnel Officer for more information. Borrowers that qualify for this assistance and are participating in the Public Service Loan Forgiveness (PSLF) program receive credit for up to 12 qualifying payments (for lump sum payments made on or after July 1, 2016).
- Veterans Total and Permanent Disability Discharge relieves members of the need to repay their federal student loans when their disability is connected to their military service.
This information is current as of this writing and was obtained from Federal Student Aid (FSA) and the resources cited on their website. Keep in mind that some of these programs may be impacted by pending legislation.
With financial programs in a state of flux, it can be challenging to stay on top of changes that impact your office. Stay informed by following the Higher Education Assistance Group on LinkedIn. Or email info@heag.us to speak with one of our compliance experts.
Sources:
https://studentaid.gov/understand-aid/types/military
https://www.va.gov/education/about-gi-bill-benefits/