Lori Meadows
The US Army offers a range of financial benefits to its soldiers, including student loan repayment assistance. The Army's Loan Repayment Program (LRP) repays up to $65,000 of outstanding federal student loan debt for eligible soldiers who meet certain requirements, such as serving for at least three years and scoring above a certain threshold on the Armed Services Vocational Aptitude Battery (ASVAB) test. Additionally, the Army offers tuition assistance of up to $4,000 annually and scholarship opportunities through the Army Reserve Officers' Training Corps (ROTC) program. The GI Bill also provides benefits for current and former soldiers to pursue further education, although it cannot be used to repay student loans. For those with private loans, the Army may provide assistance on a case-by-case basis, and certain public service jobs may qualify for federal student loan forgiveness.
| Characteristics | Values |
|---|---|
| Army's Loan Repayment Program (LRP) | Repays close to $65,000 of outstanding student loan debt |
| Federal Perkins Loan Cancellation Program | Cancels 100% of Federal Perkins Loans or National Direct Student Loans |
| Army Credentialing Opportunities Online (COOL) program | Helps soldiers find and pay for certifications or licenses for Army and private-sector jobs |
| Army's Tuition Assistance program | Provides up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard |
| Public Service Loan Forgiveness (PSLF) | Forgiven loan balance after working for a qualifying non-profit or government agency for ten years and making 120 qualifying monthly payments |
| Army Reserve Student Loan Repayment Program | Pays up to 15% of student loans, up to a maximum of $20,000 |
| National Guard LRP | Repays 15% of the outstanding principal balance or $1,500 per year, whichever is greater, up to a maximum of $20,000 |
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What You'll Learn
The Army's Loan Repayment Program (LRP)
The Army also provides education benefits that offer access to specific programs and guidance courses for standardized tests, allowing soldiers to transition directly to a participating college and earn credit toward a degree while serving. Additionally, the Army Reserve Officers' Training Corps (ROTC) offers scholarships to cover tuition and school supply costs for those aspiring to become commissioned Army Officers.
The Student Loan Repayment Program (SLRP) is another option for those enlisting in the Army Reserve. This program requires enlisting for a three-year term in a Military Occupational Specialty (MOS) that offers the LRP. Non-prior service applicants must also enlist with an initial assignment to a Troop Program Unit for at least six years of their initial eight-year military service obligation. It is important to note that some dollar amounts and specific requirements may vary, so consulting a recruiter is advised for up-to-date information.
The SLRP does not cover interest, loan balances in default, or other charges. To qualify for repayment, applicants must understand and comply with the requirements outlined in DA Form 3286-66, including providing timely loan information to the HRC Education Incentives division. Additionally, applicants must be high school diploma graduates and meet minimum scores on the ASVAB, with prior service and in-service personnel requiring longer enlistment periods.
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Federal student loan forgiveness
Another option is the Army Reserve Student Loan Repayment Program, which provides up to 15% of loan repayment assistance, up to a maximum of $20,000, for those who serve in the Army Reserve for at least six years. This program is unique in that it considers borrowers with private loans on a case-by-case basis, whereas other programs are typically limited to federal loans.
For soldiers who previously served in the Army Reserves, re-enlisting can bring additional benefits. They can receive up to $50,000 in student loan repayment assistance through the Army Reserves, along with a potential reenlistment bonus of up to $20,000. Military veterans pursuing healthcare careers through the Veterans Health Administration (VHA) can also qualify for substantial loan repayment assistance of up to $200,000 through the EDRP. This program provides up to $40,000 annually for a maximum of five years, and the funds are tax-free.
It's important to note that not everyone will qualify for loan forgiveness or repayment programs, and there may be specific eligibility criteria for each program. Additionally, the GI Bill, while designed to help military service members with education costs, cannot be used to repay student loans. However, individuals may need to reenlist to qualify for future GI Bill benefits, which can then be used for educational pursuits.
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The GI Bill
The original GI Bill ended in 1956, but it has since been modified through the passage of the Forever GI Bill in 2017. The Post-9/11 Veterans Educational Assistance Act of 2008 provided veterans with funding for the full cost of any public college in their state. The GI Bill also covers expenses while veterans are training for a job.
The Harry W. Colmery Veterans Educational Assistance Act, also known as the Forever GI Bill, requires certain information about eligibility and benefits to be shared with schools unless the individual requests otherwise.
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Army Credentialing Opportunities Online (COOL) program
The US Army has a program called Credentialing Opportunities On-Line (COOL) to help soldiers find and pay for ways to grow into their careers. The program is designed to help soldiers succeed in their military careers and in the private sector after they have served. COOL helps soldiers find information on certifications and licenses related to their jobs and can even provide funding to pay for credential exams and maintenance fees.
The Army Credentialing Assistance (CA) Program helps pay for the courses and exams needed to earn certain industry-recognised certifications. Soldiers can request CA funding for any credential listed in Army COOL. CA funding helps pay for approved credentials, which can be used in combination with GI Bill benefits. CA funding covers classroom learning along with books, materials, fees, exams, recertification, or related costs.
All ranks are eligible for the program, however, Commissioned Officers (CW2, 2LT, and above) may use CA only if they agree to serve a military service obligation, in accordance with current TA requirements. The CA military service obligation commences on the ending date of each class for which CA was approved. Credentialing Assistance is subject to the same funding limit as Tuition Assistance (TA). Soldiers may use both TA and CA, but the combined usage by any soldier shall not exceed the fiscal year limit of $4,000 or $4,500.
The Army also has a student loan repayment program, but it depends on which job you sign up for. You would have to talk to a recruiter to get the current policy.
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Army Reserve Student Loan Repayment Program
The US Army offers a Student Loan Repayment Program (SLRP) to help soldiers with their student loans. The program repays up to $65,000 of outstanding student loan debt. The Army Reserve Officers’ Training Corps (ROTC) also offers scholarships to cover tuition and school supply costs for those working towards becoming commissioned Army Officers.
To qualify for SLRP, you must meet certain requirements. These include being a high school diploma graduate and, for non-prior service applicants, scoring 50 or higher on the ASVAB. Additionally, you must enlist in a unit or MOS that has been deemed bonus-eligible by the Department of the Army. Prior service and in-service personnel must enlist, reenlist, or extend for three or more years. Non-prior service applicants must enlist with an initial assignment to a Troop Program Unit for at least six years of their initial eight-year military service obligation. The maximum benefit is $10,000, except for selected specialties that qualify for up to $40,000.
The following loans are eligible for repayment:
- Any loan made, insured, or guaranteed under Part B of Title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.)
- Any loan made under Part D of such Title (the William D. Ford Federal Direct Loan Program, 20 U.S.C. 1087 a et seq.)
- Any loan made under Part E of such Title (20 U.S.C. 1087 aa Et seq.)
- Any loan incurred for educational purposes made by a lender that is an agency or instrumentality of a state, a financial or credit institution (including an insurance company) subject to examination and supervision by a US or state agency, or a pension fund or non-profit private entity (subject to case-by-case review/approval by the Department of the Army).
It is important to note that the Army's SLRP does not cover private loans. For private loans, other options such as SCRA should be considered. Additionally, there is no military student loan forgiveness available for spouses of service members, but the Army does offer tuition assistance and career advancement programs to spouses.
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Frequently asked questions
Yes, the Army has a Loan Repayment Program (LRP) that repays up to $65,000 of your student loan debt.
To qualify for the Army's Loan Repayment Program, you must meet the following criteria:
- You must have federal student loans acquired before your enlistment date.
- You must serve in the Army for at least three years.
- You must score 50 or more on the Armed Services Vocational Aptitude Battery (ASVAB).
- You must be part of a critical military occupational specialty (MOS) when you enlist.
Yes, the Army Credentialing Opportunities Online (COOL) program helps soldiers find and pay for certifications or licenses for a broad range of Army and private-sector jobs. Additionally, the Army's Tuition Assistance program provides up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard.
No, there is no military student loan forgiveness program for spouses of service members. However, the Army offers other tuition assistance and career advancement programs to spouses.
Yes, if you join the Army Reserve and serve for at least six years, the Army Reserve Student Loan Repayment Program will pay up to 15% of your student loans, up to a maximum of $20,000.
