Reservists get new break on student loans

[Vulture6]

Reservists get new break on student loans

By Rick Maze - Staff writer
Posted : Monday Oct 1, 2007 10:29:29 EDT

A college education bill signed Thursday by President Bush includes a provision to give mobilized reservists a break when it comes to repaying student loans.

The College Cost Reduction Act, which expands the federal Pell Grant program, includes legislation proposed by Rep. Susan Davis, D-Calif., that allows mobilized National Guard and Reserve members to defer repaying student loans for up to 13 months after they are released from active duty.

Davis, chairwoman of the House Armed Services Committee’s military personnel panel, said the new law “will make a difference in the lives of the many students using loans to pay for college” and “will also make a difference in the lives of the service members who had to suspend their college careers to answer the call to duty.”

Previously, Guard and Reserve members were not required to make student loan payments while mobilized but had to begin making payments as soon as they were released from active duty.

Davis said the 13-month post-mobilization break on payments is intended to provide time for people to get their personal and financial lives in order before the bills come due. “After sacrificing in Iraq and Afghanistan on our behalf, we owe our service members a transition period as well as a chance to readjust back to civilian life,” she said.

Bush mentioned the military provision as he signed the bill, saying it “helps ease the burden on men and women in uniform who have taken out loans for higher education.”

“We believe that when you’re wearing the uniform, we need to help you; that you’re making a sacrifice, and it’s OK for the government to help you in dealing with your loans when it comes to higher education,” he said.