Savanna Hoffman
The military offers several programs to help service members pay off their student loans. Active-duty service members can defer their student loan payments until up to 13 months after active duty has ended, and the government will pay interest on select student loans during that time. The HEROES Act also prevents service members from incurring additional student debt while deployed. The Army National Guard, for example, offers the Student Loan Repayment Program (SLRP), where after each completed year of active duty, the service branch will make a payment of 1/3 or $1,500 (whichever is greater) on the remaining balance. The Federal Perkins Loan Cancellation Program gives soldiers the chance to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. The Public Service Loan Forgiveness (PSLF) program is for service members who work in qualifying public service positions. Additionally, some branches of the military offer their own loan repayment programs.
| Characteristics | Values |
|---|---|
| Student loan repayment programs | Student Loan Repayment Program (SLRP), Public Service Loan Forgiveness (PSLF), Federal Perkins Loan Cancellation Program, National Guard LRP, Health Professions Student LRP, EDRP |
| Student loan repayment amounts | Up to $1,500 per year or 15% of the outstanding principal balance, whichever is greater (National Guard LRP), up to $20,000 (National Guard LRP), up to $40,000 per year (Health Professions Student LRP), up to $50,000 (reenlisting in Army Reserves) |
| Student loan repayment eligibility | Active-duty members, service members in qualifying public service positions, active-duty soldiers who have served at least one year in hostile fire combat situations, soldiers who enlist for a six-year term in the National Guard |
| Student loan deferral | Active duty service members can defer student loan payments until up to 13 months after active duty has ended |
| Student loan interest | The government will pay interest on select student loans during the deferral period |
| Student loan refinancing | May be eligible for a lower rate and different term, allowing faster debt elimination |
| Student loan repayment for spouses | The Army offers tuition assistance and career advancement programs to spouses of service members |
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What You'll Learn
Student Loan Repayment Program (SLRP)
The military offers several programs to help service members pay off their student loans, including the Student Loan Repayment Program (SLRP). SLRP is a program that allows federal agencies to repay certain types of student loans as a recruitment or retention incentive for highly qualified personnel. The program is authorized under 5 U.S.C. 5379 and 5 CFR part 537, which allow agencies to set up their own student loan repayment programs.
To be eligible for SLRP, individuals must sign up for an original (first) active-duty enlistment of at least three years. After each completed year of active duty, the service branch will make a payment of 1/3 or $1,500 (whichever is greater) directly to the loan servicer. These payments are subject to taxes and are considered income, so a percentage of the payment will be withheld to avoid a large tax bill at the end of the year. For example, $2,500 would be withheld from a $10,000 payment. It's important to note that the amounts given are maximum amounts and may be limited to specific military specialties.
In addition to SLRP, the military also offers the Public Service Loan Forgiveness (PSLF) program for service members in qualifying public service positions. Some branches of the military also offer their own loan repayment programs or incentives. These programs may vary depending on the needs of the branch and the specific job roles.
It's always a good idea to check with a recruiter for the current policy and eligibility requirements, as they can provide detailed information on the various programs available and help individuals determine the best option for their specific situation.
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Public Service Loan Forgiveness (PSLF)
The military offers several programs to help service members pay off their student loans. One of the most well-known available options is the Public Service Loan Forgiveness (PSLF) program, for service members who work in qualifying public service positions.
PSLF is a forgiveness program for US federal student loans. It is available to service members who work in qualifying public service positions. The program has been described as a "nightmare" due to its complex requirements and the changing nature of the program. However, some people have had positive experiences with PSLF, with one person on Reddit stating that they only had a good experience after meeting the number of qualifying payments. Another person on Reddit mentioned that they were able to make their grad school loans eligible for PSLF by doing a direct consolidation with their undergrad loans.
To be eligible for PSLF, you must be a service member working in a qualifying public service position. The military is considered a public service, so military service members may be eligible for PSLF. However, it's important to note that not all military roles may qualify, and you should check with your recruiter to confirm your eligibility. Additionally, you must have US federal student loans to qualify for PSLF. Private loans are not eligible for PSLF, but there may be other options, such as the Student Loan Repayment Program (SLRP) or other branch-specific programs, to help with private loan debt.
Under PSLF, your loans may be forgiven after 10 years of qualifying payments. It's important to note that PSLF requires annual certification and that you must ensure you have the correct lender. The process can be confusing, as different people may provide different explanations of what is required. Seeking advice from others with experience with PSLF, such as on Reddit or other online forums, may be helpful in navigating the process.
In addition to PSLF, the military offers other programs to help with student loan debt, including SLRP and various branch-specific programs. These programs may have different requirements and benefits, so it's important to carefully review the eligibility requirements and terms of each program before making a decision.
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Federal Perkins Loan Cancellation Program
The military offers several programs to help service members pay off their student loans. One such program is the Student Loan Repayment Program (SLRP), which is available to active-duty members who agree to serve in specific roles or occupations. Another option is the Public Service Loan Forgiveness (PSLF) program, designed for service members working in qualifying public service positions. Additionally, some military branches provide their own loan repayment programs to attract and retain personnel. These programs may vary depending on the specific needs of the branch and the roles available.
One example of a loan forgiveness program within the military is the Federal Perkins Loan Cancellation Program. This program offers forgiveness benefits to Federal Perkins Loan borrowers who engage in certain types of public service or are employed in specific occupations. The loan forgiveness in this program is referred to as loan "cancellation". Borrowers with outstanding balances on their Federal Perkins Loans can receive a cancellation if they meet the eligibility criteria, regardless of when the loan was made for service provided on or after October 7, 1998.
Perkins loan holders who work in public service positions may be eligible for partial or full debt relief through a federal forgiveness program after working in approved public service jobs and making qualifying payments. The Perkins Loan program was discontinued on September 30, 2017, after Congress failed to renew it. However, forgiveness for existing Perkins loans is still possible for those who qualify. The total amount of Perkins loans that borrowers could take out as an undergraduate was $27,500, and graduate students could borrow an additional $32,500. Unlike other federal loans, Perkins loans always carry a 5% interest rate and do not incur fees. Depending on the type of public service job, individuals could have up to 100% of their Perkins loans forgiven after five years.
To apply for the Federal Perkins Loan Cancellation Program, individuals should contact the school they attended when they received the loan or the school's designated Perkins Loan servicer. While there is no standard application form, many schools or their Perkins Loan servicers have developed forms to request and document eligibility. Applicants must submit a written request for cancellation and provide any required documentation as specified by the school. The school determines eligibility, and there is no appeal process to the Department of Education. It is important to note that the school is prohibited from refunding any payments made while performing service for cancellation. Therefore, individuals should contact the school immediately if they believe they are eligible to receive the maximum cancellation amount.
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GI Bill
The military offers several programs to help service members pay off their student loans. The two most well-known programs are the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. Some branches of the military also offer their own loan repayment programs.
One of the available options is the GI Bill. Since 1944, the GI Bill has helped qualifying veterans and their family members get money to cover all or some of the costs for school or training. The GI Bill provides benefits such as low-cost mortgages, low-interest loans to start a business or farm, one year of unemployment compensation, and dedicated payments of tuition and living expenses to attend high school, college, or vocational school. These benefits are available to all veterans who have been on active duty during the war years for at least 90 days and have not been dishonorably discharged. By 1956, 7.8 million veterans had used the GI Bill education benefits, with 2.2 million attending colleges or universities and an additional 5.6 million participating in some kind of training program.
The GI Bill Comparison Tool can help explore the options, and a VA-accredited representative can help apply for education benefits. The Post-9/11 GI Bill provides additional benefits, and one can check their remaining Post-9/11 GI Bill benefits. If one has unused Post-9/11 GI Bill benefits, they may be able to transfer them to their spouse or dependent children. The Yellow Ribbon Program helps pay tuition costs that the Post-9/11 GI Bill doesn't cover. The Edith Nourse Rogers STEM Scholarship allows eligible veterans using the Post-9/11 GI Bill or dependents using the Fry Scholarship to get added benefits.
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National Guard LRP
The military offers several programs to help service members pay off their student loans. The Student Loan Repayment Program (SLRP) is available to active-duty members who agree to serve in specific roles or occupations. The Public Service Loan Forgiveness (PSLF) program is for service members working in qualifying public service positions. Additionally, some military branches offer their own loan repayment programs to attract and retain personnel. These programs may vary depending on the branch and job role.
The National Guard's general repayment amount is up to $50,000, but benefits can fluctuate based on funding. The National Guard SLRP requires enlisting for at least six years and having a qualifying ASVAB score. The loan must be in good standing and made before entering active duty, and only certain loans qualify. After each completed year of active duty, the National Guard will pay 1/3 or $1,500 (whichever is greater) towards the remaining original unpaid principal balance. Payments are subject to taxes and may be withheld, so filing income taxes is important to avoid a large tax bill.
It is important to carefully review the eligibility requirements and terms of each program. The Army has a student loan repayment program, but it may depend on the specific job signed up for. The Army and Navy will repay up to $65,000 in student loans, while the Coast Guard will repay up to $30,000 with yearly limits. The SLRP is a great benefit for those eligible, but it is important to understand the specific requirements and limitations of the program.
There are also other options to consider when paying for school, such as Federal Student Aid, which assists with tuition, books, fees, and living expenses. Completing the FAFSA is the first step in accessing federal student aid. It is worth exploring these options alongside military repayment programs to make an informed decision about paying for higher education.
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Frequently asked questions
The military offers several programs to help service members pay off their student loans.
Two of the most well-known available options include the Student Loan Repayment Program (SLRP), and the Public Service Loan Forgiveness (PSLF) program.
The Student Loan Repayment Program (SLRP) is for active-duty members who agree to serve in specific roles or occupations. After each completed year of active duty, the military will make a payment of 1/3 or $1,500 (whichever is greater) on the total remaining original unpaid principal balance.
The Public Service Loan Forgiveness (PSLF) program is for service members who work in qualifying public service positions.
The Federal Perkins Loan Cancellation Program gives soldiers the chance to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. The Army’s education benefits provide access to specific programs that can help bring your education goals within reach. The GI Bill helps current and former soldiers who have served for at least three years to pay for college, graduate school, trainings, certifications, and more.
