Find Higher Ed Benefits That Support Service Members, Families

The Senate will hold a hearing this week examining access and support for service members and veterans in higher education.

That hearing and some additional research brings to light just how many benefits are out there for this group -- just not all in one place. In fact, of the hundreds of higher education benefits available, there are probably just as many individual places that current service members and veterans will have to dig to try and find them.

So, as the Memorial Day weekend approaches, the Student Loan Ranger would like to dedicate this week's blog to providing information and resources for some of the higher education benefits service members might be entitled to that can help either pay for college or repay student loans.

[Find scholarships that can help veterans pay for college.]

Paying for College

Most people are familiar with the GI Bill, but did you know that it was the first federal financial aid program? There have been many changes to the benefits offered through the years, the most recent and significant being the post-9/11 GI Bill, but the premise remains the same.

Tuition assistance programs are available for active-duty members of the Air Force, Navy, Army, Marines and Coast Guard. Unused benefits may be transferable to your spouse or dependent children. Each program is a little different, so it's important to know your full eligibility before applying.

Veterans can also receive tuition assistance for degree and certificate programs under several programs including the Montgomery GI Bill Active Duty, Montgomery GI Bill Selected Reserve and the Yellow Ribbon program. The Veterans Education Assistance Program allows funds from your military pay to be placed in a postservice education account where the government matches every $1 placed in the account with $2. Most states also offer special education benefits for local veterans.

[Check out how military families can save for college.]

Almost every state offers some sort of tuition benefit or scholarship program for its active-duty or veteran residents. Most of these programs are fairly generic and similar in eligibility criteria, but some have additional programs that are very specific.

Texas, for example, offers in-state tuition rates to most service members. This is a pretty common state benefit, but Texas also offers free tuition, books and room and board to those who have at one time been classified as prisoners of war.

Repaying Student Loans

Most service members who serve for a little over three years and continue into the military reserves or other types of domestic national service programs can have up to $18,000 in student loans repaid under the National Call to Service Program. Most of the military branches also offer a Department of Defense student loan repayment program that will contribute, in some cases, up to $65,000 toward student loans.

The Servicemembers Civil Relief Act has been in the news quite a bit lately thanks to the recent settlement paid by Sallie Mae in answer to allegations that the company made it difficult for eligible student loan borrowers to claim the benefits allowed under this program.

[Explore the U.S. News Best Online Programs for Veterans rankings.]

The law caps the interest rate on any debt received before military service at 6 percent. Note that service members have to notify the loan holder of their eligibility and in many cases provide proof of active-duty service to obtain this benefit. The settlement will require Sallie Mae to streamline this process for borrowers, and add more phone staff versed in the benefits available under the law.

Those borrowers with federal direct loans are actually given a zero percent interest rate on loans made on or after Oct. 1, 2008 if serving in a hostile area. Finally, military members can defer their federal student loans while on active duty by applying, or having their representative apply for, a military service deferment. This will keep your loans from coming due for payment during certain periods of active-duty service, and for six months after you've been demobilized.

State and federal governments do quite a bit to help members of the U.S. armed forces and their families manage higher education costs. The problem is that information on these benefits can be difficult to find.

You can find more information on all the higher education benefits for service members, veterans and their families in SALT's new e-book, " The Military Smartbook for Defeating Student Debt."

Betsy Mayotte, director of regulatory compliance for American Student Assistance, regularly advises consumers on planning and paying for college. Mayotte, who received a B.S. in business communications from Bentley College, is a frequent contributor to ASA's SALT Blog; responds to public inquiries via the advice resource "Just Ask;" and is frequently quoted in traditional and social media on the topics of student loans and financial aid.