Learn about Education Debts and Deferment
You are required to complete the educational requirements and serve on active duty for the full period outlined in your contract. If you voluntarily, or due to misconduct, fail to fulfill any condition or term in your contract you may be responsible for reimbursing the military.
What is an Education Debt?
Military members receive an advance on educational assistance with the understanding that they meet certain conditions outlined in a contract. Individuals are required to fulfill 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.
For information about each type of education debt, visit Types of Education Debts.
Make a Payment
We accept full and partial payments for out-of-service debts, including payments toward an installment payment. To learn more about payment methods and reduced installment payments, visit Make a Payment.
Additional Information About Your Education Debt
DFAS will not issue a statement of paid interest for tax purposes. Educational related debts are considered contract debts and not educational loans.
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 10 years, or 120 months, to repay their debts with a minimum payment of $50.00 per month.
What is Student Deferment?
Used by current students or those in the process of completing a residency to request a student deferment (no payments) for the repayment of an educational debt/student loan until date of graduation or completion of residency plus 90 days.
Find out if a deferment is the best option for your situation. To learn about this program, eligibility, and submission requirements, visit Student Deferment
Did You Elect to Serve Active Duty in Lieu of Repayment?
If you elected to enter active duty service, you may be eligible to request termination of your debt. Eligibility and submission requirements depend on the Branch of Service (BoS). To determine what is required to apply, select your BoS below: