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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.

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Additional Information About Your Education Debt

Image IconDFAS will not issue a statement of paid interest for tax purposes. Educational related debts are considered contract debts and not educational loans.
 
Image IconThe 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. 

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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:

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Army

Individuals with a debt may apply to the Army Review Boards Agency requesting termination of the debt.

How do I Apply?

To submit your request for termination follow the below steps:

1. Prepare

Complete a DD Form 149 – Application for Correction of Military Record. *Please note: You may need to right click to download or the save the documents to your computer before you are able to fill them out.*

Adobe Acrobat PDF Document Image PDF: Download and complete your your DD Form 149 in PDF format, click here.

2. Apply

Mail the completed form and other required documentation to:

Army Review Boards Agency
251 18th Street South, Suite 385
Arlington, VA 22202-3521

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Air Force / Space Force

Individuals with a debt that was a direct result of their disenrollment from the Air Force Reserve Officer Training Program (ROTC) may apply to HQ AFROTC to request termination of the debt.

How do I apply?

To submit your request for termination follow the below steps:

1. Prepare

Gather the following documents:

  • Letter stating request
  • Copy of most recent LES
  • Statement of Service (Proof of Service) letter with Active Duty Service Date or a DD Form 214

2. Apply

Mail all required documentation to:

HQ AFROTC/RR
60 West Maxwell Blvd
Maxwell AFB, AL 36112-6501

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Navy & Marine Corps

Individuals with a debt that elected to enter active duty service may be eligible to request termination of your debt.

How do I Apply?

To submit your request for termination follow the below steps:

1. Prepare

Gather the following documents:

  • Oath of Office/DD Form 4 (all three copies of enlisted documents)
  • A Statement of Service from command with active duty service date or a DD Form 214
  • Enlisted Members Only - A request to either defer the debt if less than 24 months Active Enlisted Service or waive debt if more than two year or commissioned (add mailing address with POC phone number)

2. Apply

Mail all required documentation to:

Naval Service Training Command NROTC​
Attn: N93
320A Dewey Avenue, Building 3, Room 106
Great Lakes, IL 60088-2911


 

Do You Disagree with Your Debt?

Individuals reserve the right to dispute or protest a debt. To learn more about protesting/disputing your debt, visit Disputing/Protesting a Debt.

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Return to the Debt and Claims DFAS Homepage
 

Page Updated July 7, 2023