The cumulative U.S. student loan debt is at its highest value to date: 1.6 trillion dollars. Among students, veterans and service members hold 1 billion dollars in outstanding debt, affecting their ability to enjoy life. From being unable to purchase homes and having no other choice but to default their loans, the impact of chronic student loan debt on veterans is psychologically and financially draining.
While some veterans were able to exhaust GI Bill benefits, others may not have met general qualifications, such as being active for a specific amount of time or being enrolled in college courses at the time. With no other options available, taking advantage of student loans—at the time—seemed responsible. Now, veterans in Arizona are struggling to make ends meet.
Statistics on Student Loan Debt among Veterans
From 2015 to 2016, 53 percent of college student veterans received GI Bill benefits. The other 47 percent of college students took student loans, both federal and nonfederal. The average loan amount was around $8,000 per academic year. However, research shows that it took a year over the standard track—anywhere between four to six years—for veterans to earn either a bachelor’s or associate’s degree.
The time to complete a degree plays a large factor in accumulating student loan debt. Another issue is credits and their transferability. Active duty service members are expected to move around the world when duty calls, often forcing them to complete courses at alternate colleges or having to take a semester off. Unfortunately, not all colleges and universities accept certain credits, which requires service members to repeat classes.
Top 3 Benefits of Veteran Student Loan Forgiveness in Arizona
The ongoing dilemma of student loan debt among veterans in Arizona found some resolution due to the Trump Administration’s executive order that allowed nearly half of permanently disabled veterans to discharge their federal loans. On the other hand, those with private student loans or those who do not qualify for discharge could not utilize this form of relief.
This is why student loan forgiveness comes with advantages for veterans in Arizona. Loan forgiveness is essentially canceling some or all the balance on a student loan. The top three benefits of veterans applying for student loan forgiveness in Arizona include:
- Potentially clearing thousands of dollars in debt, allowing veterans to live an adequate life
- Receiving immediate loan balance assistance without affecting credit
- Making lower, more cost-efficient monthly payments
Who’s Eligible for Veteran Student Loan Forgiveness in Arizona?
Disabled veterans who want to apply for the total and permanent disability (TPD) discharge program must be permanently disabled. Those who qualify for Social Security disability may also be allowed to utilize TPD.
Non-disabled veterans and active service members qualify for the Public Service Loan Forgiveness program. The following requirements must be met to apply for this program:
- Be employed by the United States federal, state, local, or tribal government, or a not-for-profit organization
- Hold full-time employment with that respective agency
- Have direct or consolidated loans
- Make 120 qualifying payments
- Recompense your loans using an income-driven repayment system
If you don’t meet these requirements, there may be other forgiveness or repayment options that you may qualify for. Speak to an experienced debt settlement attorney in Arizona to learn more about your options and rights as a veteran.
Pursue Student Loan Forgiveness as an Arizona Veteran
If you’re a current service member or veteran who is experiencing creditor harassment or difficulty repaying high-interest debt, reach out to a knowledgeable debt settlement attorney who is familiar with the law—one with an unyielding commitment to protecting your rights and reducing or eliminating your student loan debt. When you’re enduring financial hardship, it is wise to consult McCarthy Law. Whether you’re looking to resolve your debts or repair your credit score, our legal team knows what it takes to get you the results you need.
Schedule a free case review with one of our expert debt attorneys today by giving us a call at (855) 976-5777 or filling out a contact form today. We’re here to work for you and help you move on with life without the burden of debt.