By Chris Mandia Posted in Auto Loans Debt is an issue for a huge portion of the American population, especially when it comes to repaying loans and lines of credit.
Marrying this with free food, housing and a dependable paycheck on the 1st and 15th, administering ones personal finances tends to take a backseat. Free chow, as bad as it may have tasted, begins to sound appetizing. Tax free income–just a faint memory jumbled with the fog of war.In 2008, Congress passed the Veterans Benefits Improvement Act.In effect, up to 100 percent of your home equity can be used for a VA cash-out refinance.For more information on mortgage consolidation, visit In regards to college loans, the same general forbearances apply.Unfortunately, many of these perks disappear once you’ve transitioned to the civilian sector. So it’s understandable many veterans struggle with personal finances upon their release from active duty. The Veterans Administration offers several solutions for debt repayment help.
For veterans who’ve become overburdened with home and college loan debt, the VA suggests forbearance.
An agreement between you and your mortgage provider, forbearance suspends and/or reduces your monthly mortgage payments for a predetermined amount of time–thus, allowing you to deal with more pressing short-term financial issues.
As an active duty member/veteran you’ll qualify for additional benefits, including a longer forbearance period with no impact to your credit score.
Additionally, your student loan may be discharged if you become permanently disabled.
Verification is essential and must be certified by a doctor.
If submitted to your lender within 90 days of certification, and the Secretary of Veterans Affairs determines you to be unemployable (100% disabled), you’ve a very good chance at having the loan permanently cancelled.