Bayh proposes student loan relief for soldiers, spouses

Interest would not accrue on federal student loans for active duty soldiers and their spouses under the Interest Relief Act introduced by U.S. Senator Evan Bayh. For those activated for 12 to 15 months, the bill could mean an average savings of between $1,183 and $1,479 in interest over their activation period, according to Congressional Research Service estimates.

Under the Interest Relief Act, eligibility would include active duty soldiers of any branch of the military, including reserve units and the National Guard and their spouses, who have student loans through the Federal Direct Loan Program. The interest accrual deferment could be for up to five years while on active duty. Members of the armed forces can already defer payments on their student loans while on active duty, but the interest continues to accrue.

This is part of the July 25, 2007 online edition of Frost Illustrated.

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