I have an education debt

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense

What is an education debt?

Many military members receive an advance on educational assistance with the understanding that they meet certain conditions outlined in a contract. The individual is required to complete the educational requirements, and serve on active duty, for the full period outlined within the contract. If an individual voluntarily, or because of misconduct, fails to fulfill any condition or term in their contract, they must reimburse the military.

The required repayment is considered a debt. The debt is comprised of the cost of tuition, books, supplies, miscellaneous expenses, etc. Any amount owed under the agreement is assessed interest based on the 90 day Treasury Bill auction rate on the day which reimbursement is determined. Individuals have ten years, or 120 months, to repay their debts with a minimum payment of $50.00 per month.
Educational related debts for tax purposes, are considered contract debts and not educational loans. Therefore, we will not issue a statement of paid interest for tax purposes.

Suspension of reduced monthly payments

In some circumstances we will consider suspension of or reduced monthly payments due to full-time school enrollment or financial hardship. Each account is reviewed on a case-by-case basis. If you are requesting deferment of payment or a reduced monthly payment plan, please contact the Customer Care Center at 866-912-6488.

If suspension or a reduced monthly payment plan is approved, you will be required to certify annually by providing an updated Financial Status Form and verification of full-time enrollment. If we do not receive proper documentation, we will continue the collection process including referral to the Treasury Offset Program, private collection agencies, Department of Justice for enforced collection, and credit bureau reporting.

Please note that we have the option to resume collections at any time if an individual’s status changes or if additional information is obtained which indicates that an individual is able to make payments.

Special documentation needed for Air Force debts

If you need information pertaining to your cadet status please contact:
551 West Maxwell Blvd
Maxwell AFB, AL 36112-6106

You must submit a written request for records release, citing the request is submitted under the “Privacy Act” or “Freedom of Information Act”. You will receive a package comprised of all information taken into consideration when HQ AFROTC elected the disenrollment decision. The documentation will also include the field training report, counseling by the detachment, record of performance, etc.

I elected to serve active duty in lieu of repayment

Each branch of military service has established specific guidelines regarding individuals that elect to serve active duty, in lieu of repayment of their debt. According to their contracts, service in Guard or Reserve forces does not qualify for termination consideration.

Air Force
Upon commissioning, officers must forward:
  • commissioning documents
  • orders
  • copy of ID card (front/back)
  • certification letter from their commander
Send to:
551 East Maxwell Blvd
Maxwell AFB AL 36112-6106.

Enlisted individuals (after serving 24 months of continuous active duty) will forward copies of:
  • enlistment documents
  • orders
  • ID card (front/back)
  • certification letter from the commanding officer
Send to:
551 East Maxwell Blvd.
Maxwell AFB AL 36112-6106

Individuals who have entered Active Duty service in any branch, with a debt that originated from the Army may apply to the Board for Correction to Military Records using DD Form 149, Application for Correction of Military Record, to request termination of the debt. Submit your completed DD Form 149 to the appropriate address on page 2 of the form.

Both Officers and Enlisted members (after serving 24 months of continuous active duty) must send copies of:
  • their commissioning/enlistment documents
  • a certification letter from their commander
Chief of Naval Education and Training
CNET (OT36/083)
250 Dallas Street
Pensacola FL 32508-5220.
Types of education debts

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Page updated February 25, 2011