Using
MyPay for Military Loans
Military loans are usually repaid via military allotments using
the Department of Defense's MyPay Defense Finance and Accounting
Service (DFAS). DFAS is the agency responsible for paying all US
servicemembers and MyPay allows you to manage your pay, including
allotments, leave and earnings statements and more.
There are two types of allotments
in the MyPay DFAS system that can be used to repay military loans.
Discretionary
Allotments are used to repay military loans from finance
companies. All enlisted military servicemembers can make these
types of allotments. Servicemembers can have no more than six
discretionary allotments.
Non-discretionary Allotments are used for repayment of military loans from relief agencies such as the Navy and Marine
Corps Relief Society, Army Emergency Relief and the American Red
Cross. There are no limits to the number of non-discretionary
allotments a servicemember can have.
Sometimes, an
agency will collect an unpaid debt through garnishment. This is
classified as a non-discretionary allotment. |
