PHEAA Extends Loan Forgiveness for Military Personnel
Armed Forces Loan Forgiveness Program benefits extended through December
HARRISBURG, Pa., July 18 /PRNewswire/ -- PHEAA has announced an extension to the application deadline
for the Armed Forces Loan Forgiveness Program. It has been extended from December 31, 2006 to June 30, 2007.
The program is funded entirely by PHEAA's business earnings.
The active duty status requirement has also been extended. Anyone serving in the Armed Forces in an active
duty status between September 11, 2001 and December 31, 2006 is qualified, provided that they have an eligible
loan and meet the program requirements. Borrowers who only served on a two-week active duty assignment for
training status during that timeframe are not eligible.
The Armed Forces Loan Forgiveness Program recognizes the bravery, dedication and loyalty of our servicemen
and women following the September 11 attacks on our nation. The program has already benefited more than 6,400
military personnel, with almost $15 million in loan forgiveness.
"The Armed Forces Loan Forgiveness Program was created by our Board of Directors on June 19, 2003 to
recognize the sacrifice that our servicemen and women are making on our behalf," said Elinor Z. Taylor, Chairman
of the PHEAA Board of Directors. "Since that resolution was established, we have extended the program deadlines
five times to best serve those who serve us. More than anything, I think that this demonstrates our commitment to
these men and women and our thanks for their service to our nation."
The program provides up to $2,500 in a one-time loan forgiveness payment for student loan borrowers serving in
the military. Eligible loans include PHEAA-guaranteed and/or AES-owned loans serviced by AES, including
Stafford, HEAL and KeystoneEXTRA loans that were disbursed on or before September 30, 2003. The loan cannot
be in default.
The borrower must hold one of four connections to Pennsylvania: (1) currently a resident of Pennsylvania, (2) a
nonresident who left a Pennsylvania school due to a call to active duty, (3) any Pennsylvania resident who was
living in Pennsylvania at the time of enlistment and was in the military continuously through at least September 11,
2001, regardless of current place of residence, or (4) any non-resident who attended a PA approved institution of
postsecondary education, who went directly from this postsecondary enrollment into the U.S. Armed Forces, and
was in the military continuously through at least September 11, 2001, regardless of current place of residence.
Program applications can be downloaded from http://www.pheaa.org and http://www.aesSuccess.org or an
application may be requested by calling AES/PHEAA at 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.
About PHEAA and American Education Services
As the nation's leading non-profit student aid organization, PHEAA earns money that is used to help
Pennsylvania families pay for college, to create thousands of jobs, and to help keep taxes down. Doing business
nationally as American Education Services (AES), we bring additional revenue back to the Commonwealth to
benefit Pennsylvania families.
PHEAA supplements the State Grant Program with an additional $72.5 million and thousands of additional grant
awards, provides millions of dollars in free scholarships and loan forgiveness, develops award-winning online
planning tools, and has saved our students more than $500 million by underwriting expensive upfront fees on
student loans -- all at no cost to taxpayers.
This year, we are investing more than $200 million of our business earnings to pay for free student aid for
Pennsylvania families. As our success grows, so will our investment in the Commonwealth, exceeding the
hundreds of millions of dollars and growing into the billions of dollars.
For more information, please visit our Website at http://www.PHEAA.org.