Dena Standley | October 19, 2022
Summary: Navy Federal Credit Union has many programs in place to help military service members who have fallen behind on their payments. Here's everything you need to know about Navy Credit debt forgiveness.
It's a life-changing experience to join the US armed forces. A career in the military provides opportunities and experiences that few jobs can match, but it is a challenging life that requires sacrifice and courage. Enlisting for education opportunities during service and after returning to civilian life is attractive for many people who consider enlisting.
If you're one of these people, you might be searching for loan forgiveness options or repayment plans for your credit debt loans after completing your undergraduate or graduate education and having student loan debt. This article outlines the Navy Federal Credit Union debt forgiveness programs available to servicemen and women and how they work. But briefly,
Navy Federal Credit Union is a member-owned credit union that exclusively serves military service members, veterans, and their families. Founded during the great depression by a small group of US Navy department employees, Navy Federal Credit Union's mission is to give military members access to financial security in a safe place. As a not-for-profit credit union, any leftover funds go directly back to the members.
Navy Federal Credit Union ultimately has its members' best interest in mind. It offers a series of services including: credit cards, mortgages, student loans, auto loans, and even personal loans. If you've fallen behind on your payments to Navy Federal Credit Union, they have several debt forgiveness programs that can help you get back on track.
Here's everything you need to know.
Credit forgiveness combines part debt management, part debt consolidation, and part debt settlement to eliminate bankruptcy from the equation. As part of a forgiveness agreement, you pay a fixed monthly payment (similar to debt management) on credit card bills rolled into one (similar to debt consolidation) for less than what you owed initially (similar to debt settlement).
Speak to a certified counselor to determine if this is the right solution for your problem. A counselor will ask you about your income and expenses and pull your credit report to verify how many bills you have and how much you owe on them to determine the extent of your hardship.
Once the counselor determines that the forgiveness program is the best solution, they will send the credit card company a detailed agreement that includes the monthly payment and ask for their approval. Upon the creditor's approval, you will make monthly payments, and within 36 months or fewer, you will repay the debt. Early repayment has no penalty. Debt management, consolidation, and settlement have similar goals. However, you should be aware that any attempt to manage, settle, or consolidate debt can have a significant impact on your credit score.
SCRA covers service members absent from duty because of illness, wounds, or leave. SCRA also protects public health service (PHS) and national weather service (NOAA) officers in active service. Service members are encouraged first to contact a military legal help office in their area. Should military legal help not resolve a concern, or if the matter must be handled urgently, the Department will inspect the complaint to see if action is warranted.
As specified in 50 USC ** 3901-4043, the Servicemembers Civil Relief Act (SCRA) offers many benefits and protections to members of the armed forces. Under the SCRA, military service includes:
The SCRA also provides protection and benefits to the dependents of service members, including borrowers who co-signed loans or took out loans with them, for instance. Service members' dependents include their spouse, children, parents, grandparents, or other relatives for whom the service member has contributed more than half of their financial support for the past 180 days.
The SCRA protects most service members from the moment they enter active duty. Upon receiving specific military orders, protections begin for reservists. The benefits and protections include:
After making 120 qualifying monthly payments under a qualifying repayment plan while working full time for a qualifying employer, Public Service Loan Forgiveness (PSLF) program will forgive any remaining balance on your Direct Loans.
For your safety, submit a Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF Form) annually or when changing employers. When you fill out the form, you will learn whether your PSLF payments qualify. This will enable you to determine your progress as early as possible.
A limited PSLF waiver will apply on October 31st, 2022. Enlistees will defer payments while serving. Check with your student loan servicer to see how it may affect the PSLF timeline.
Since you need to make 120 qualifying monthly payments, wait at least ten years to be eligible for PSLF. When you submit the form of forgiveness, and at the time the remaining balance on your loan is forgiven, you must be employed by a qualifying employer.
The type of job you do for your employer does not determine your eligibility for the PSLF Program. It is your employer that determines your eligibility. If you work for one of the following organizations, you are eligible for PSLF:
As part of the PSLF Program, full-time AmeriCorps or Peace Corps volunteers also qualify.
One of the significant consequences of debt forgiveness is its impact on your credit. Tax implications may also arise. Be aware of these effects before you sign up for a debt forgiveness program to know if it's in your best interest.
Know what you're entitled to and get it. You have access to a wide range of legal benefits as a service member, veteran, or spouse, and it is never too late to gain financial stability and manage your debt.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
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You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
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