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How Military Service Members and their Spouses can Access Debt Relief

Melinda Opperman September 3, 2025

By Melinda Opperman

According to an NFCC survey on Financial Literacy and Preparedness, military families struggle more with debt management than civilian families. With frequent changes of station and pay fluctuations, it’s no surprise that service members have difficulties keeping debt under control. 

Fortunately, there are many types of protections for military service members and their spouses, including protections for debt. As a service member, you just have to take the proper steps to ensure you get the full advantage of these benefits.

Here’s a look at your debt-protection benefits, and how you can be sure to use them when the time comes.

What debt relief options are available for military?

Servicemembers and their spouses have access to a variety of benefits to help you manage debt. Here’s an overview of what’s available.

Servicemembers’ Civil Relief Act (SCRA) debt protections

The Servicemembers’ Civil Relief Act (SCRA) helps protect active-duty service members and their families when military service makes them unable to cover certain debt and bill payments. Depending on your circumstances, your benefits might include:

  • Having your interest rates reduced to 6% for most debt you incurred before active duty.
  • Postponing home foreclosure or eviction.
  • Deferring your income taxes.
  • Having the ability to terminate your car lease early.
  • Being able to terminate your housing lease without penalty.

To find out which specific benefits you’re eligible for, contact your nearest legal assistance office.

Military Lending Act (MLA) loan protections

The Military Lending Act (MLA) can help you if you’re on active duty for 30 days or more, by capping your interest at 36% on high-interest loans that are not backed by collateral property, including:

  • Payday loans
  • Car title loans
  • Overdraft lines of credit
  • Tax-refund anticipation loans

This act not only protects you, but also applies to members of your family who are enrolled in the Defense Enrollment Eligibility Reporting System.

Public Service Loan Forgiveness (PSLF) for federal loans

Public Service Loan Forgiveness (PSLF) allows federal workers, including full-time military members, to potentially qualify for forgiveness of their federal student loan debt after they make 120 qualifying payments.

In order to receive PSLF, you must meet the following qualifications:

  • You have Direct Loans (or you consolidate to a Direct Loan)
  • You’re either on a 10-year Standard Repayment Plan or an income-driven repayment plan (IDR)

Note: Requirements for federal student loan forgiveness programs are subject to change. Visit StudentAid.Gov for the latest updates.

Total and Permanent Disability (TPD) discharge for veterans

For veterans who are totally and permanently disabled, you can get your federal student loan debt forgiven through a Total and Permanent Disability (TPD) discharge. This program applies to the following loan types:

  • Federal Perkins Loans
  • Federal Family Education Loan (FFEL) Program loans
  • William D. Ford Federal Direct Loan (Direct Loan) Program loans

Student loan interest relief during deployment

If you’re serving in an area that qualifies you for hostile fire or imminent danger pay, you can potentially qualify for additional help with federal student loans. You can have the interest on your federal Direct Loans and a portion of your Direct Consolidation Loans reduced to 0% for up to 60 months.

Military relief societies for financial aid

For further assistance, contact the relief society associated with your branch of the military. For example, the Navy-Marine Corps Relief Society offers interest-free loans and grants for Sailors, Marines and their family members, to help with anything from rent to emergency travel.

How military families can ensure they have access to debt relief

To get access to debt relief, military members will have to be proactive and organized. Here are some things that you and your family should do to be ready when the time comes:

  • Register in the Defense Enrollment Eligibility Reporting System and keep your records up to date.
  • Keep original and digital copies of your marriage certificate, birth certificates, social security cards and other identity documents.
  • Get a military ID card for each member of the family.
  • Make sure your spouse is listed on your insurance policies and financial accounts as the beneficiary.
  • Update your income tax status to married, and verify the address is current.
  • Talk to the Community Service Center about any additional documents that might be needed.
  • If you’re deployed, place an active duty alert on your credit reports and designate your spouse to act on your behalf. 
  • Consider granting your spouse power of attorney so they can manage debt payments on your behalf if necessary.
  • Keep a copy of any orders calling you up for active duty.


Financial counseling for military families and veterans

Whatever your situation, the NFCC has certified credit counselors who are eager to provide you with professional support and guidance. Our counselors can advise you on any and all of the following topics:

  • Qualifying for a VA loan
  • Improving your budget
  • Paying off debt
  • Dealing with student loans
  • Improving your credit

Whether you need debt relief or not, we’re here to help service members, veterans and their families improve their finances!

Melinda Opperman is an exceptional educator who lives and breathes the creation and implementation of innovate ways to motivate and educate community members and students about financial literacy. Melinda is part of the team at credit.org and has over 19 years experience in the industry.

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