Scra

[doctor tooth]

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I found out about the serviceman's civil relief act (SCRA) and I found the part that requires lowering interest rates of credit cards to a max of 6%. Does anyone have any experience with applying for this or if we as doctors qualify. It seems as if we would and I am very interested in applying.


-If a service member’s military obligation has affected his/her ability to pay on financial obligations such as credit cards, loans, mortgages, etc., the service member can have his/her interest rate capped at 6% for the duration of the service member’s military obligation.

Qualifying debts are debts that were incurred by the service member, or the servicemember and their spouse, jointly, before coming on active duty. Debts entered into after going on active duty are not so protected.

 

[krmower]

I found out about the serviceman's civil relief act (SCRA) and I found the part that requires lowering interest rates of credit cards to a max of 6%. Does anyone have any experience with applying for this or if we as doctors qualify. It seems as if we would and I am very interested in applying.


-If a service member’s military obligation has affected his/her ability to pay on financial obligations such as credit cards, loans, mortgages, etc., the service member can have his/her interest rate capped at 6% for the duration of the service member’s military obligation.

Qualifying debts are debts that were incurred by the service member, or the servicemember and their spouse, jointly, before coming on active duty. Debts entered into after going on active duty are not so protected.

Only really heard about it being used when you deploy. When you are on regular active duty many people will defer loans.

If you are in school none of it really applies. You are not on active duty (unless Navy HSCP) As an HPSP student your life-style has not changed because of your military service. You haven't nor will you deploy. You are pursuing post-graduate education just as you would have if you had not joined the military.

I guess it doesn't hurt to try though

 

[doctor tooth]

I am only researching and asking about this because I am graduating in May and had the Army dental HPSP. I am trying to think of all the opportunities that may decrease my debt and/or the apr as much as possible.

 

[vellnueve]

Only really heard about it being used when you deploy. When you are on regular active duty many people will defer loans.

If you are in school none of it really applies. You are not on active duty (unless Navy HSCP) As an HPSP student your life-style has not changed because of your military service. You haven't nor will you deploy. You are pursuing post-graduate education just as you would have if you had not joined the military.

I guess it doesn't hurt to try though

Same here - I had only heard of it being applied in terms of persons deploying.

 

[chompsss]

Only really heard about it being used when you deploy. When you are on regular active duty many people will defer loans.

If you are in school none of it really applies. You are not on active duty (unless Navy HSCP) As an HPSP student your life-style has not changed because of your military service. You haven't nor will you deploy. You are pursuing post-graduate education just as you would have if you had not joined the military.

I guess it doesn't hurt to try though

Same here - I had only heard of it being applied in terms of persons deploying.

As someone who is headed into the HSCP program (commissioning in 11 July), I'd love to take advantage of this. I've had to accrue about $20k in credit card debt and another $50k in private student loans in returning back to school over the past two years, so I could really benefit from having those rates dropped to 6%. Since it's been four years since this thread was touched, have you two heard of anybody being able to utilize this program while on HSCP or what the process looks like?

 

[doctor tooth]

Call all your credit card companies and tell them you are active duty and want to lower your APR, most have a department that handles military specifically and will want a copy of your orders. USAA has you upload a copy of them. I have done this for all my credit cards, my wife has also done this. Some give you a lower percentage for a year or two, but if you PCS you are entitled to it again if it expires and you will have a new set of orders. It doesn't hurt to ask, and the worst that can happen is they can say no and keep you at the same APR you are at now, but I have yet to be told no

 

[doctor tooth]

FYI I used this when i PCSd to Ft Jackson, Korea and Hawaii. So if its specifically for deploying, they don't seem to follow that rule.

 

[ktran17]

This applies for anyone going into AD. Some of the benefits include capping all loans at 6%.

§ 516. Extension of rights and protections to reserves ordered to report for military service and to persons ordered to report for induction [Sec. 106] (a) Reserves ordered to report for military service. A member of a reserve component who is ordered to report for military service is entitled to the rights and protections of this title and titles II and III during the period beginning on the date of the member's receipt of the order and ending on the date on which the member reports for military service (or, if the order is revoked before the member so reports, or the date on which the order is revoked).

Here is the link to the official text https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf

http://www.benefits.va.gov/HOMELOANS/scraqb.asp

Contact your loan service company for further information on it. For example, navient, greatlakes, etc

Note: The SCRA is different than military service deferment
Eligibility Requirements for military service deferment

• You must be serving during a war, military operation, or national emergency.
• You must be assigned to a duty station other than your normal station.
• Only federal loans are eligible.