Savanna Hoffman
The US Army offers a Loan Repayment Program (LRP) to help soldiers pay off their student loans. The program is a special incentive offered to highly qualified applicants. Under the LRP, the Army will repay up to \$65,000 of a soldier's qualifying student loans. To be eligible, soldiers must meet certain requirements, including agreeing to a term of service of three years or more and having their loans made, insured, or guaranteed under the Higher Education Act. The Army also offers other tuition assistance and career advancement programs to spouses of soldiers, such as the National Defense Student Loan Discharge program.
Does the Army help pay student loans?
| Characteristics | Values |
|---|---|
| Loan Repayment Program (LRP) | The Army will repay up to $65,000 of student loan debt. |
| Who is eligible for LRP? | Active-duty soldiers who have served at least one year in hostile fire combat situations. |
| Conditions | Soldiers must agree to a term of service of three years or more. Soldiers must decline enrollment in the Montgomery GI Bill. |
| Interest | Interest accrued on the loan will not be repaid by the Army. |
| Loan types | Only loans incurred for the Soldier's education will be paid. Parent Loans for Undergraduate Students (PLUS) and William D. Ford Loans are eligible. Private loans are not eligible. |
| Loan status | The Army will not pay loans that are in default. |
| Other benefits | The Army Credentialing Opportunities Online (COOL) program helps soldiers find and pay for certifications or licenses for Army and private-sector jobs. The Army Tuition Assistance program helps soldiers in active duty, the Army Reserve, or the Army National Guard with up to $4,000 annually towards school or professional training. |
| Spouse benefits | The Army offers tuition assistance and career advancement programs to spouses. Members of the military employed by the military for the last ten years may have their federal student loans fully forgiven. |
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What You'll Learn
The Loan Repayment Program (LRP)
Loans must be made, insured, or guaranteed under the Higher Education Act, Title IV, Part B, D, or E, or 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 U.S. or state agency, or a pension fund or non-profit private entity (subject to case-by-case review) prior to entering active duty.
The Army will repay 33 1/3% of the outstanding principal balance, less taxes of the Soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) for up to three years. Loans must not be in default before entering active duty, and during the repayment process. Payments made under the Loan Repayment Program are considered taxable income in the years that payments are made.
Additionally, there is no reimbursement available for any loan payments already made. The Army will not pay on loans that are in default. In order to maintain eligibility for the Loan Repayment Program, Soldiers must remain qualified in their original MOS throughout their initial term of service. If an LRP participant does not fulfil their obligated term of service and separates from service early, they will lose their eligibility for LRP. However, there are some exceptions to this early separation rule. For example, individuals who separate early after completing at least one year of active duty may be eligible for prorated LRP payments if the reason for separation was physical disability, hardship, or certain convenience of the government discharges.
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Tuition Assistance
The US Army offers a Tuition Assistance (TA) Program to provide financial assistance for voluntary off-duty civilian education programs. The program supports soldiers' professional and personal self-development goals. The TA program is a public law implemented by the Department of Defense (DoD) Directive and DoD Instruction. It is available to eligible soldiers, officers, warrant officers, enlisted, Army National Guard, and Army Reserve soldiers on active duty.
The TA program is managed through ArmyIgnitED, an online portal that allows eligible soldiers, cadets, and Army civilians to request financial assistance for classroom and online learning courses. ArmyIgnitED automates many paper-based processes, providing an intuitive and easy-to-use interface. It includes an automated registration tool that enforces TA policies and procedures, enabling global access to educational opportunities.
The Army's education benefits also include access to guidance courses for standardized tests, the option to transition directly to a participating college after service, and earning credit towards a degree while serving. Soldiers can also benefit from the Army Credentialing Opportunities Online (COOL) program, which helps fund certifications or licenses for Army and private-sector jobs.
Additionally, the Army offers loan repayment programs (LRP) to help with student loan debt. The LRP is available to highly qualified applicants and specified Military Occupational Specialties (MOSs). The Army will repay a portion of the soldier's qualifying student loans, up to $65,000, after completing one year of service. To remain eligible, soldiers must maintain their qualifications in their original MOS throughout their initial term of service.
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Federal Student Loan Forgiveness
The Army's Loan Repayment Program (LRP) is another option for federal student loan forgiveness. The LRP is a special incentive offered to highly qualified applicants entering the Army. The Army will repay a part of the soldier's qualifying student loans. To be eligible for the LRP, soldiers must agree to a term of service of three years or more and decline enrolment in the Montgomery GI Bill. The LRP must also be guaranteed in writing in the enlistment contract.
The Army will repay 33 1/3% of the outstanding principal balance, less taxes, of the soldier's student loans annually or $1,500, whichever is greater, after each year of service, up to a total of $65,000. It is important to note that the Army will only repay the remaining original unpaid principal and will not cover interest. Additionally, payments made under the LRP are considered taxable income, and there is no reimbursement for any loan payments already made.
The Federal Perkins Loan Cancellation Program is another option for federal student loan forgiveness available to active-duty soldiers who have served in hostile fire combat situations for at least one year. Eligible soldiers can qualify for up to 50% of their loan being cancelled and up to 100% of Federal Perkins Loans forgiven.
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Student Loan Interest Rate Reduction
The US Army offers various benefits to help soldiers manage their student loan debt. While the Army does not directly pay off student loans, soldiers can take advantage of loan repayment programs, tuition assistance, and interest rate reductions.
Active-duty military service members can benefit from a reduced interest rate on their student loans. Under the Servicemembers Civil Relief Act (SCRA), the interest rate on student loans taken out before military service can be capped at 6%. This benefit applies to both federal and private student loans. For federal loans, the interest rate deduction is automatic, while borrowers with private loans must file a request manually.
Additionally, those who have served in a hostile-fire or imminent-danger location for at least 12 months may qualify for a 0% interest rate on their federal loans for up to 5 years. This benefit can be applied retroactively, even if the individual is no longer in the military.
Loan Repayment Programs
The Army offers the Loan Repayment Program (LRP), which repays up to $65,000 of outstanding student loan debt. To be eligible for this program, soldiers must meet specific requirements, including agreeing to a term of service of three years or more and having the LRP guaranteed in their enlistment contract. The Army repays 33 1/3% of the outstanding principal balance or $1,500, whichever is greater, after each year of service, up to a total of three years.
The Federal Perkins Loan Cancellation Program is another option for soldiers with Federal Perkins Loans or National Direct Student Loans. Active-duty soldiers who have served in hostile fire combat situations for at least one year can qualify for 100% loan forgiveness.
Tuition Assistance
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.
Other Loan Forgiveness Options
The Public Service Loan Forgiveness (PSLF) program offers loan forgiveness for those who work for a qualifying non-profit or government agency, including the US armed forces, for ten years and make 120 qualifying monthly payments. Additionally, military members who have served in a hostile-fire or imminent-danger location may be eligible for the National Defense Student Loan Discharge program, which can provide up to 50% loan cancellation.
Spouses of military members can also benefit from tuition assistance and loan forgiveness programs under certain conditions.
It is important to note that eligibility requirements and specific benefits may vary, and individuals should carefully review the terms and conditions of these programs before making any decisions regarding their student loan debt.
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Loan Cancellation
The US Army offers several benefits to help soldiers pay for their education, student loans, and certifications. These benefits include:
Loan Repayment Program (LRP)
The Army's Loan Repayment Program (LRP) helps soldiers repay their student loans. Under this program, the Army will repay up to $65,000 of a soldier's outstanding student loan debt. To be eligible for the LRP, soldiers must meet certain requirements, including agreeing to a term of service of three years or more and declining enrollment in the Montgomery GI Bill. The LRP only applies to specified Military Occupational Specialties (MOSs). Payments are made directly to the lender after the soldier has completed one year of service. It is important to note that interest on the loans will not be repaid, and loans that are in default are not eligible for the LRP.
Federal Perkins Loan Cancellation Program
The Federal Perkins Loan Cancellation Program allows soldiers to cancel up to 100% of their Federal Perkins Loans or National Direct Student Loans. This program is available to active-duty soldiers who have served in hostile fire combat situations for at least one year. The cancellation rate varies depending on the number of years of qualifying service, starting at 15% for the first and second years, increasing to 20% for the third and fourth years, and reaching 30% for the fifth full year of service.
National Defense Student Loan Discharge Program
The National Defense Student Loan Discharge program is available to military members who served in hostile-fire or imminent-danger locations. Eligible soldiers can qualify for up to 50% cancellation of their loan balance.
Army Credentialing Opportunities Online (COOL) Program
The Army COOL program assists soldiers in finding and paying for certifications or licenses related to Army and private-sector jobs.
Army Tuition Assistance Program
The Army provides up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard.
GI Bill
The GI Bill helps current and former soldiers who have served for at least three years pay for college, graduate school, training, certifications, and more.
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Frequently asked questions
Yes, the Army offers a Loan Repayment Program (LRP) that can help pay off student loans. However, this is only available for certain Military Occupational Specialties (MOSs) and only applies to certain loans.
The Army will repay up to \$65,000 of your student loans. After each year of service, the Army will pay 1/3 or \$1,500 (whichever is greater) of the remaining original unpaid principal balance.
To be eligible for the Loan Repayment Program, soldiers must agree to a term of service of three years or more and decline enrollment in the Montgomery GI Bill. Additionally, only loans made, insured, or guaranteed under the Higher Education Act, Title IV, Part B, D, or E are eligible for repayment.
Yes, the Army offers tuition assistance and career advancement programs for soldiers and their spouses. The Army Credentialing Opportunities Online (COOL) program helps soldiers find and pay for certifications and licenses for Army and private-sector jobs. 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.
