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Military Spouse Student Loan Deferments

Military spouses with student loans are in a tough spot. They are commonly asked to deal with permanent station changes and employment changes as a result, and those frequent moves make handling student loan debt a real challenge.

In some cases a military spouse may need additional consideration for repayment of a student loan because of these hardships. And while there isn’t a dedicated federal “military spouse deferment” program offered to military spouses in particular, there are federal programs and careful planning can offer significant relief to military spouses who qualify.

Military Spouse Student Loan Deferment Act

It’s important to note that legislation, such as a previously proposed House Resolution called the Military Spouse Student Loan Deferment Act (H.R. 3641 in the 117th Congress), was introduced to address these challenges, but at press time, federal student loan deferment for military spouses has not been enacted. H.R. 3531 died in committee after being introduced on the House Floor.

Military spouses are, as a result, forced to rely on non-military-specific existing federal programs and communicate proactively with their loan servicers.

Available Federal Options for Military Spouses with Student Loan Debt

Military spouses with federal student loans may qualify for the following based on their circumstances. They include, but may not be limited to:

• Economic Hardship Deferment: If a spouse’s income is low or if the family receives certain means-tested public assistance, they may qualify for an economic hardship deferment on their federal student loans. Once approved, student loan payments temporarily pause.
• Unemployment Deferment: If a military spouse loses their job (for instance, due to a PCS move) and actively seeks new employment, they may be eligible for an Unemployment Deferment. This deferment can last for up to three years.
• General Forbearance: If a spouse doesn’t qualify for a deferment but still faces temporary difficulty making payments, they can request a general forbearance from their loan servicer. Interest will continue to accrue on all loan types during forbearance and may be capitalized.
• Income-Driven Repayment (IDR) Plans: IDR plans (like SAVE, PAYE, IBR) can benefit military spouses. Payments are based on income and family size. Depending on the household income (and how taxes are filed), monthly payments could be low or temporarily not required. These plans also offer pathways to loan forgiveness after 20 or 25 years of qualifying payments.
• Public Service Loan Forgiveness (PSLF): If the military spouse works full-time for a qualifying employer (government or eligible non-profit), their own federal Direct Loans may be eligible for PSLF after a minimum number of qualifying payments on an eligible repayment plan.

Servicemembers Civil Relief Act (SCRA) and Spouses

The SCRA primarily benefits the service member’s pre-service financial obligations, including their student loans (capping interest rates at 6%). SCRA does not directly extend these interest rate cap protections to a spouse’s separate student loans solely in the spouse’s name.

However, the financial relief the SCRA provides to the service member’s debts can positively impact the overall household budget, potentially making it easier to manage the spouse’s loan payments.

Private Student Loans for Spouses

Options for private student loans held by a military spouse depend entirely on the lender. Spouses should:

• Contact their private loan servicer directly to explain their situation, especially if facing unemployment or income reduction due to a PCS.
• Inquire about any specific hardship programs, forbearance, or modified payment plans the lender might offer.
• Keep detailed records of all communications.

Student Loan Deferment Advice for Military Spouses

• Proactive Communication: Contact your federal and private loan servicers when you anticipate a change that could affect your ability to make payments (e.g., an upcoming PCS, job loss).
• Explore All Avenues: Don’t assume you won’t qualify for assistance. Discuss all deferment, forbearance, and IDR options with your servicer.
• Seek Financial Counseling: Resources like Military OneSource and installation-based financial counselors can provide free, confidential guidance tailored to military families.

While the path for military spouses managing their own student loans may require navigating general federal programs rather than spouse-specific deferments, options for relief do exist.

Where to Get Help and More Information

• Your Loan Servicer(s): This should always be your first point of contact for questions about your specific loans and for applying for any available relief options.
• Federal Student Aid: The official U.S. Department of Education resource for information on federal student loans, including details on deferment, forbearance, IDR plans, and PSLF.
• Military OneSource: A Department of Defense-funded program that provides a wide range of support services for military members and their families, including confidential financial counseling.
• Installation Legal Assistance Offices (JAG): While primarily focused on the service member, they may offer general guidance or referrals for financial matters.
• Consumer Financial Protection Bureau (CFPB): Offers resources on managing debt and can accept complaints about financial products and services, including student loans (consumerfinance.gov).