Bayh introduces bill to help soldiers with student loans

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July 18, 2007 10:32 am

— Interest would not accrue on federal student loans for active-duty soldiers and their spouses under the Interest Relief Act introduced Tuesday by Sen. Evan Bayh, D-Ind.
For those activated for 12 to 15 months, the bill could mean an average savings of between $1,183 and $1,479 in interest over their activation period, according to the senator’s office.
Under the Interest Relief Act, eligibility would include active-duty soldiers of any branch of the military, including reserve units and the National Guard and their spouses, who have student loans through the Federal Direct Loan Program.
The interest-accrual deferment could be for up to five years while on active duty. Members of the armed forces can already defer payments on their student loans while on active duty, but the interest continues to accrue.
“By deferring interest accrual for those who have student loans, we remove one more hurdle that our soldiers and their families face when they are planning their future after active duty service,” Bayh said.