Student Loans

Looking for the National Defense Student Loan Discharge Program – Read This

Written by Steve Rhode


Dear Steve,

I served in the military and I was looking at the National Defense Student Loan Discharge. Two years ago you stated that you could not find information on it.

I want to know if the National Defense Student Loan Discharge program exists?



Dear Kimberly,

After I wrote my last piece on the National Defense Student Loan Discharge question, a commenter help solve the mystery.

I don’t there is actually an official program called National Defense Student Loan Discharge (NDSLD) because the discharge is already baked into the Perkins Loans that are eligible.

As I mentioned in my previous article, you would need to complete a DD214 and submit it to the loan servicer.

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Perkins Loan -> National Defense Student Loan Discharge

The categories of service that count towards forgiveness are similar to those in the Public Service Loan Forgiveness program.

According to the Department of Education, you can have up to 100 percent of your Perkins student loans forgiven after five years of eligible service whose active duty service began on or after August 14, 2008.

The Department of Education advises, “Application for cancellation or discharge of a Perkins Loan must be made to the school that made the loan or to the school’s Perkins Loan servicer. The school or its servicer can provide forms and instructions specific to your type of cancellation or discharge.” – Source

All of this confusion goes way back. The National Defense Student Loan program is actually a part of the National Defense Education Act of 1958. But there is no forgiveness or discharge component as part of that program. The National Defense Student Loan program was enacted to “strengthen the national defense and to encourage and assist in the expansion and improvement of educational programs to meet critical national needs; and for other purposes.” – Source

So it is reasonable to assume that along the way, people became confused between loans issued under the Act to help support our national defense and loans taken out by people serving in national defense.

READ  National Defense Student Loan Discharge Looks Like More Fiction Than Fact

So, all that being said, everything I can find in the law or from the Department of Education would direct you back to your school and/or servicer for assistance with forgiveness.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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