10 USC 6161 - Settlement of accounts: remission or cancellation of indebtedness of members

(a) In General.— 
The Secretary of the Navy may have remitted or cancelled any part of the indebtedness of a person to the United States or any instrumentality of the United States incurred while the person was serving on active duty as a member of the naval service, but only if the Secretary considers such action to be in the best interest of the United States.
(b) Retroactive Applicability to Certain Debts.— 
The authority in subsection (a) may be exercised with respect to any debt covered by that subsection that is incurred on or after October 7, 2001.
(c) Regulations.— 
This section shall be administered under regulations prescribed by the Secretary of Defense.