I wish I could get clear in my mind just exactly what the definition of "active duty" is. We are located very close to a military base. If all enlisted persons are eligible for relief, we would be inundated with requests. Yet, some articles do include in the definition of eligibility, "all enlisted personnel". Aren't enlisted personnel entitled only when called from their location to go into active military service or duty? Case in point - I have a request from an indivual who recently enlisted in the Army, has completed her basic training and is now being located to Fort Sam Houston, Texas. Is she eligible for relief under the Act? Or would she only be eligible if called to active duty from her position in Texas?

Is the military her full time job? If so, then she is on active duty (even when on leave, or other lawful causes)from the day she enlisted to the day she is discharged. Don't confuse active duty with being deployed somewhere.

Remember that a person's status has to change to active duty to get relief under the SSCRA. If they were in the military when you made the loan - they don't qualify. If they've recently been deployed to Afghanistan, you might want to work with them though...

It sounds like your customer is on active duty, if she is being stationed at Fort Sam Houston after completing her basic training. So she is entitled to relief on any credit she entered into before she entered basic training. She will continue to be entitled to that relief until the expiration of her active duty obligation.

Adding to the confusion, the term "enlisted" can have different meanings. For example, "I have enlisted in the military" means I have signed up to serve in the Armed Forces. Another usage though, is in referring to those in the military that are not officers. They are referred to as "enlisted" personnel. So, unless you have some military background, I understand how it can be confusing.

I wish I could get that into some people's heads. They are under the assumption that it is enacted only if someone is called off to a conflict. That would fit if they are in the reserves and "activated", but all active duty personnel are eligible too (as I have read it), considering that they had the loan before they enlisted.

Remember the spirit and intent of the law. Dr. Jones is pulling in a mid-6 figure income with his private practice and he joins the Army because he is needed there and he sees his duty. Now he is making $40M a year, gets separate housing, rations and pro-pay, but he is making a lot less because he is serving his country.

Dr. Jones gets assigned to the 4077th MASH in the middle East. Should he be worrying that his possessions are being repossessed and his family will soon be homeless. With that on his mind he may get himself and his fellow soldiers killed.

So he gets peace of mind and an interest rate break via the SSCRA.

To recap, the debt has to exist prior to going active duty.

Active duty could mean enlisting (not being enlisted) or being called to active duty from a reserve status.

They will have orders providing you with the date they are active and it will have a date when they should be deactivated. (FYI many reserve units activated post 9-11 from the Ill.-Ind. area to Ft. Hood are going home earlier than projected so that date isn't concrete).

The SSCRA rate drop shouldn't apply unless there is an adverse effect on their income. But the burden of proof and reputational risk are on you.

In the Marine Corps, new recruits are told that SSCRA does not get them out of paying, it just delays payment.

Hi. Thanks for your response, but please help me out a little more. AS indicated, we are located smack dab in the middle of a very large military base. Our requests for relief, whether the Gulf War, or Aphganistan are very limited. And typically involve reservists. Those are easy. They are being called to active duty - to war. Are you saying that all of the soldiers located on the military base are technically eligible for relief under SSCRA for the entire time they are stationed there? (I know the debt must have been incurred prior to military service) If so, we should be getting many, many more requests. Thanks again.

Yes, that is what I'm saying. Where they are stationed at is irrelevant. The fact that they are on "active duty" is the key.

Being next to a base you are, in my experience, less likely to see these requests. This is because by the time we see the customer (I am at Ft. Hood) they are already in the service and our debt wouldn't be subject to SSCRA.

But yes. If all of those troops/airmen/etc. had a debt when they joined, those debts are subject to SSCRA for the time they serve. That time could be from entry until retirement, unless disputed by the lender in court.

Since so many servicemembers are right out of high school, there isn't unually that much debt to worry about.

Thanks Andy!!!! That actually makes sense. And its so simple too