My son enlisted in the Army two years ago. His recruiter assured him that all his student loans will be assumed and taken care of by Army. He said all that is needed is a copy of the loan statment from the lender (Nelnet). Apparently, the Army has not paid the student loan because the new lender is now collecting calling me and harassing me for non-payment of the loan. Is there anybody out there who can give some advise on how to deal with this predicament?

Hopefully, he has copies of his initial entry contract.
I don't think Army Finance takes care of this or if it the Education Center.
It could be Recruiting Command.

I am sure someone will be along some time today that knows.

You are still responsible for interest payments while the loan is being paid off. The Army pays off 1/3 of the loan over three years starting after the completion of training.

If Nelnet sold the loan to another company, he should probably inform the Army so they aren't sending the money to the wrong place.

How does this actually work? My son is paying on a student loan through nelnet right now and if we can get it where the army pays it it would be great. It was a loan for schooling before he actually went in the army but is for something he's in the army for. If that makes sense..lol

Thanks.

He would have had to sign up for it as an enlistment option and if you elect loan repayment you are ineligible for the Montgomery GI Bill.

Oh gotcha. So he can't get it now because he never signed up for it. His recruiter wasn't the best and never told him anything..lol oh well. It was worth a try. Thank you.

A few things need to be done.

1) determine if the Army is supposed to be paying it and is just late (Army paid mine a few months late once) or some other problem.

2) put the loan in forebearance/deferment for military service. Should just need a copy of contract/orders.

3) if the loan is not "valid" but the soldier was told it was okay and has some kind of documentation (witness statements, recruiter statements, initial contract showing the loan or not showing the info correctly) exists, then the soldier can send an appeal to the military board of corrections and hope that resolves the issue.

There should be someone where the soldier is located (most likely at the education center) whom he can talk with about the issue.

He never talked to the recruiter about the loan therefore it was never brought up and part of his signing contract. He may just do the forebearance. It's only 50.00 so it's not like a lot of money but his pay is so messed up right now every little bit will help him.

Thanks!