2808.01.06.02  MILITARY

1.	Defense Loans

References:  34 C.F.R. 674.56(a); NACUBO/SLCP, p. 51; NASFAA Encyclopedia 
5.10.6.1 and 5.10.6.3.

Maximum cancellation of 50 percent of the loan at the rate of 12.5 percent per 
year for each year of active service. Military deferment period runs 
concurrently with cancellation period.

2.	Direct Loans

References:  34 C.F.R. 674.56(b); NACUBO/SLCP, pp. 51-52; NASFAA 
Encyclopedia 5.10.6.2.

Maximum cancellation of 50 percent of the loan at the rate of 12.5 percent per 
year for each year of active service in an area qualifying for special pay.  
Deferment runs concurrently with cancellation.