On Monday, the U.S. Department of Education issued a Dear Colleague Letter related to the maximum interest rate that may be charged to certain Direct Loan and Federal Family Education Loan program borrowers who are on active duty military service under the Servicemembers Civil Relief Act.
The guidance would make it easier for members of the armed forces to pay lower interest rates on their federal student loans. Currently, service members who qualify for a cap on their interest rates under the Higher Education Opportunity Act have had to request that the benefit be applied to their loans. The department's new guidance directs student loan servicers to consult a government database and automatically apply the cap for qualifying borrowers.
Related Links
U.S. Department of Education Dear Colleague Letter
http://ifap.ed.gov/dpcletters/GEN1416.html