Out-of-Service Debt
Education Debts
ROTC and Service Academies
Frequently Asked Questions

1. I'm a full time student continuing my education and am financially unable to make payments at this time. Will collection action be automatically deferred until I graduate?
2. I'm a student under an approved suspension of collection action. Why is interest continuing to accrue?
3. I've been paying on my debt. Can you send me a letter stating the interest I repaid in the prior year?
4. I left the ROTC program, completed my education, and recently received an active duty commission as an officer. Can my debt be forgiven?
5. Will the interest rate on my education debt fluctuate?

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1. I'm a full time student continuing my education and am financially unable to make payments at this time. Will collection action be automatically deferred until I graduate?

Answer:   No. Please contact our customer contact center for additional information.
2. I'm a student under an approved suspension of collection action. Why is interest continuing to accrue?

Answer:   Since this is a debt and not a student loan, the account will be assessed the appropriate interest fees if not paid in full within 30 days of notification.
3. I've been paying on my debt. Can you send me a letter stating the interest I repaid in the prior year?

Answer:   No. As supported by 10 U.S.C. 2005 , education debts are not loans.
4. I left the ROTC program, completed my education, and recently received an active duty commission as an officer. Can my debt be forgiven?

Answer:   Possibly. Whether you are an officer or enlisted member, each branch of service has established acceptable criteria for considering debt forgiveness. Please contact us so we may obtain additional information from you, as well as provide you with guidance when submitting a written request for forgiveness. Service in the Guard or Reserve forces does not qualify.
5. Will the interest rate on my education debt fluctuate?

Answer:   No. The interest accrual is a fixed rate based on the 90 day Treasury Bill Auction Rate at the time of separation, or when the designated Secretary orders repayment of the debt, as in the case of academy cadets.