Armed Forces Loan-Forgiveness Program Extended

The Financial Aid Office at Pennsylvania College of Technology and Pennsylvania Higher Education Assistance Agency recently announced that the Armed Forces Loan Forgiveness Program has been extended to include men and women who served in the armed forces in active-duty status between Sept. 11, 2001, and June 30, 2006.

The application deadline has been extended until Dec. 31, 2006.

To date, more than 5,500 members of the U.S. Armed Forces have received student-loan forgiveness through PHEAA's Armed Forces Loan Forgiveness Program, with more than $12.9 million in student loans forgiven. The program was established in June 2003 to recognize the bravery, dedication and loyalty of the men and women of our armed forces who have served in the aftermath of the Sept 11, 2001, attacks on our nation.

Applicants must have served in the armed forces in an active-duty status during the qualifying period. They must also have an eligible loan and meet the program's eligibility requirements. Borrowers who only served on a two-week active-duty assignment for training status during the designated time period are not eligible for loan forgiveness.

The program provides up to $2,500 in a one-time loan forgiveness payment for student-loan borrowers serving in the military.

PHEAA-guaranteed and/or American Education Services-owned loans serviced by AES including Stafford, HEAL and Keystone EXTRA loans are eligible, provided the loan is not in default.

The borrower must hold one of four connections to Pennsylvania:

• Currently a resident of Pennsylvania
• A nonresident who left a Pennsylvania school due to a call to active duty
• Any Pennsylvania resident who was living in Pennsylvania at the time of enlistment and was in the military continuously through at least Sept. 11, 2001, regardless of current place of residence
• Any non-resident who attend a Pennsylvania-approved institution of post-secondary education, who went directly from this post-secondary enrollment into the U.S. Armed Forces, and was in the military continuously through at least Sept. 11, 2001, regardless of current place of residence

Program applications may be downloaded from PHEAAor aesSuccess, or an application may be requested by calling (800) 233-0557. If a borrower is overseas, an application signed by the Power of Attorney will be accepted if the supporting documentation is provided.