Have the GI Bill? Student Loans May Still Be Part of Your Financial Picture

When we talk about paying for education in the military and Veteran community, the GI Bill is often one of the first resources that comes to mind. And for good reason. Education benefits can cover a significant portion of the cost of college, training, and other approved programs. 

But having access to the GI Bill doesn't necessarily mean student loans aren't part of your financial picture. 

You may have student loans from before you entered the military. You may have attended a school where your education benefits didn't cover the full cost. Or you may have borrowed for education at another point in your life. 

If you have federal student loans and have served in the military, it's worth understanding what you owe and whether your service affects any of the options available to you. 

The GI Bill may not cover every education expense 

Post-9/11 GI Bill benefits can help cover the cost of education and training, but what’s covered can vary based on your eligibility and where you choose to attend school. 

Before taking out student loans to cover a gap, make sure you understand what your benefits will cover and what costs you may be responsible for. Consider tuition and fees as well as housing, books, supplies, and other expenses that may be part of going back to school. 

If you're considering a school, the VA's GI Bill Comparison Tool can help you understand how your benefits may apply before you enroll. 

Already have student loans? Your military service may matter. 

There are federal protections and programs connected to military service that may apply to your student loans. Which ones apply depends on your individual circumstances and the type of loans you have. 

Here are a few worth knowing about. 

You may have an interest-rate protection from your time on active duty 

Under the Servicemembers Civil Relief Act (SCRA), the interest rate on certain debts you took on before entering military service may be limited to 6% while you’re serving. That can include qualifying student loans. 

If you entered military service with student loan debt, it’s worth checking whether this protection applied to your loans. Visit here to learn more about the SCRA interest-rate benefit and what to do if you believe you qualified but didn’t receive it. 

Your military service may count toward Public Service Loan Forgiveness 

If you have federal student loans, your military service may count toward Public Service Loan Forgiveness (PSLF), a federal program that can forgive the remaining balance on eligible loans for borrowers who meet the program’s requirements. 

Military service doesn’t automatically qualify you for forgiveness, but it may count as qualifying government employment. Visit StudentAid.gov to see how PSLF works and whether your service and loans may qualify. 

Some Veterans with qualifying disabilities may be eligible for student loan discharge 

Veterans with certain service-connected disabilities may be eligible to have their federal student loans discharged through the Total and Permanent Disability (TPD) discharge program. If you think this may apply to you, visit StudentAid.gov to learn more about the eligibility requirements and next steps. 

Before a student loan problem becomes a credit problem 

If you have federal student loans, log in to StudentAid.gov and take inventory. What loans do you have? How much do you owe? Who is servicing them? What is their current status? 

If a payment is becoming difficult to manage, don't wait until you've missed payments to start looking at your options. A change in income, leaving the military, starting a new job, or taking on other financial responsibilities can all affect what feels manageable in your budget. 

The goal isn't simply to protect your credit score. It's to understand the debt you're carrying and make informed decisions about how it fits into the rest of your financial life. 

Take the Veteran Saves Pledge and set a savings goal that works alongside your student loan payments and the other financial priorities in your life.