Loan-Forgiveness Benefit Available to Eligible Veterans

Published 09.24.2007

Student News

The Financial Aid Office of Pennsylvania College of Technology recently was notified by The Pennsylvania Higher Education Assistance Agency of a loan-forgiveness program for veteran students.

This program will provide a one-time loan-forgiveness benefit up to $2,500 for student borrowers who served in the Armed Forces in active-duty status between Sept. 11, 2001, and Dec. 31, 2007, provided they have an eligible loan and meet eligibility requirements. It is funded entirely by PHEAA, at no cost to taxpayers.

"Since the inception of loan-forgiveness programs sponsored by PHEAA, Penn College students have had $614,560 in student loans forgiven," said Dennis L. Correll, Penn College's financial aid director, "This is a great program for students to have available to assist in reducing their student-loan debt."

Eligibility requirements:

  • Served in the Armed Forces in an active-duty status between Sept. 11, 2001, and Dec. 31, 2007 (excluding the annual two-week training period)
  • Must have an eligible loan(s): PHEAA-guaranteed, American Education Services-owned and/or AES-serviced Stafford, Consolidation, PLUS and SLS loans that are disbursed on or before Dec. 31, 2007. Eligible loans also includeHealth Education Assistance Loansand Keystone EXTRA loans that are disbursed on or before that date. The loan(s) cannot be in default.
  • Must hold one of four connections to Pennsylvania: (1) Currently a resident of Pennsylvania, (2) A nonresident who left a Pennsylvania-approved institution of postsecondary education due to a call to active duty, (3) A nonresident who was living in Pennsylvania at the time of enlistment, or (4) A nonresident who enlisted in the military immediately after attending an approved Pennsylvania institution of postsecondary education.

How to Apply:

To apply, complete and return an Armed Forces Loan Forgiveness application by June 30, 2008.