Life can be brutal, particularly to those who put everything on the line for their country. Veterans don their uniforms to protect the homeland against domestic and foreign threats. Yet, when they return from their service they often find themselves in unfamiliar territory, struggling to adapt to civilian life, and the attendant financial challenges that comes along with it. Among the many bugbears faced by veterans are steadily mounting bills, a.k.a. debt.
At first glance, it appears that the skill set of veterans is worlds apart from those required for civilian life and all the daily hullabaloo. Truth be told, the focus, discipline, and determination exhibited by vets is more than enough to hold down a job and be successful. For those vets struggling with their bills, help is at hand. Various forms of assistance can be tapped to make it easier to repay debt obligations while successfully integrating back into society.
Debt consolidation loans are designed to make it easier for veterans to get out of debt, or to manage their debt more effectively. MDCLs, or Military Debt Consolidation Loans are provided by lenders to alleviate debt, by reducing the total outstanding burden through a lower interest rate and a flexible repayment term. By paying lower monthly premiums, the long-term burden is substantially reduced. Various programs are available to veterans and active duty soldiers, including the following:
- The Military Lending Act of 2006
- The Servicemembers Civil Relief Act
- Nonprofit Credit Counselling Services
- Veterans Housing Benefit Programs
- Military Debt Consolidation Loans
For detailed insights, vets and active duty soldiers can gather more info about military consolidation loans from Best Consolidation Loans. Other financial assistance options include home loans, pensions, education plans, insurance, et al. These sections are discussed next.
The Office of Finance – US Department of Veterans Affairs
The Veterans Affairs Office of Finance features 400 employees that are divided up among 2 field sites to meet the needs of vets. These include an office in St Paul, Minnesota, and an office in Austin, Texas. Benefits come in many forms, including pensions, a fiduciary program, online benefits, and a series of other financial assistance packages geared towards health, wellness, and stability. Education, home loans, insurance, and health resources are some of the many ways that the US Department of Veterans Affairs helps its own.
- Debt Consolidation – these loans are applicable to unsecured debts where no collateral is used to guarantee loans. These typically have higher rates of interest and are much riskier for lenders. Military debt consolidation loans make it easier to pay down these unsecured debts.
- Education – to alleviate the financial burdens of costly academic or vocational training, the Department of Veterans Affairs provides a host of services for retraining, assisting, and developing the skills of veterans. These include the Veterans Retraining Assistance Program.
- Pension Plans – Veterans pensions are integral to the financial stability of veterans after/during their service to their country. The VA makes every effort to accurately calculate and compensate veterans based on their needs. Other options available to veterans and their families are a survivors pension, aid and attendance, and housebound pensions, and eligibility for wartime periods.
Rates are provided for both survivors and veterans pensions, making it easier to ascertain your net worth to qualify for a veterans pension. These planning tools also provide information for determining your maximum annual pension rate, for married/unmarried veterans with or without dependents. As more dependents are added, so the MAPR amount increases.
- Life Insurance – VGLI is the Veterans Group Life Insurance Plan provided by the Department of Veterans Affairs. Another option is Servicemembers Group Life Insurance, abbreviated to SGLI. Various other life insurance options are provided to alleviate the stresses faced by veterans, particularly with physical and emotional injuries.
- Home loans – homeownership is integral to the stability of individuals and families. Fortunately, the VA readily assists servicemembers (incl. surviving spouses) to become homeowners. Home loan guarantees and grants are offered to veterans, with no money down. This greatly alleviates the financial burden of having to save 5%, 10%, or 20% of the purchase price of a property. Financial assistance includes Interest Rate Reduction Refinancing Loans (IRRRL), Specially Adapted Housing (SAH), and Native American Direct Loans (NADL).
The Process for Applying for Assistance From the VA
All forms of assistance require paperwork to be processed. VA financial hardship assistance is designed expressly for veterans who are struggling financially. Veterans can land in financial difficulty for any number of reasons, including loss of work, economic turmoil, inability to work, life situations, et al. Whatever the reason, the Department of Veterans Affairs is prepared to work with veterans to overcome these challenges. Financial hardship assistance options include repayment plans to repay debt over a period of time and debt relief options for a portion, or all of the co-pay debt.
If the financial difficulties experienced by veterans make it impossible to make their future co-pays, the VA may fast-track an exemption for this through a hardship determination. This elevates a veteran status to a higher priority group. If approved, the VA will take care of the copayments for the remainder of the year. This hardship determination selection can reduce much of the financial burdens that veterans face.
Department of Veterans Affairs Loans
Veterans affairs loans are provided by private lenders, including banks and mortgage companies. They are guaranteed by the US Department of Veterans Affairs. Following on from the earlier example, the VA guarantees home loans with $0 down payment to all veterans. Loan options include Cash out Refinancing Loans, Interest-Rate Reduction Refinancing Loans, Native American Direct Loans, and Purchase Loans. Each of these options is tailored towards a specific group of veterans. The vast majority of veterans affairs home loans (up to 90%) do not require a down payment to be made.
When the public and private sector come together to assist veterans, it is much easier to get out of debt. The benefits of serving in the military continue well after the service has concluded. Thanks to debt consolidation options for veterans, such as personal loans for military debt, and VA assistance, there is plenty of light at the end of the tunnel.
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