Lori Meadows
The US military offers several programs to help service members pay off their student loans, including the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. Active-duty members can also enjoy a reduced interest rate of 6% for loans taken out before active service under the Servicemembers Civil Relief Act (SCRA). Additionally, some military branches offer their own loan repayment programs or incentives, such as the Army's Loan Repayment Program (LRP) and the Air Force College Loan Repayment Program (CLRP). These programs can provide significant financial assistance, but they often come with specific requirements and may not cover all types of loans.
| Characteristics | Values |
|---|---|
| Military loan repayment programs | Student Loan Repayment Program (SLRP), Loan Repayment Program (LRP), Air Force College Loan Repayment Program (CLRP), Health Professions Loan Repayment Program |
| Who is eligible? | Active-duty members, veterans, National Guard members, Army Reserve soldiers, medical and dental students |
| Requirements | Minimum 3-year enlistment, score of 50 or higher on ASVAB, 120 qualifying payments, full-time duty, specific Military Occupational Specialties (MOS) |
| Benefits | Up to $65,000 loan assistance, up to $50,000 loan forgiveness, reduced interest rate of 6%, monthly payment reduction, GI Bill benefits |
| Limitations | Only federal loans are eligible, benefits may vary based on funding issues and military branch, private loans may require a written request |
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What You'll Learn
Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is one of the options available for members of the military to help them pay off their student loans. The SLRP is offered by some branches of the military, including the Army National Guard, to help recruit and retain personnel. The program is designed for active-duty members who agree to serve in specific roles or occupations. It is important to note that the SLRP does not apply to private loans, only federal loans are eligible.
The SLRP provides a repayment amount of up to $50,000 for the National Guard, while other branches may offer different amounts. The payments are made directly to the loan servicer, and the amount is subject to taxes. To qualify for the SLRP, individuals must commit to a certain number of years of service, typically ranging from three to six years, and meet other eligibility criteria. It is worth noting that the SLRP may not be combined with other benefits, such as the GI Bill, as per current regulations.
In addition to the SLRP, members of the military may also be eligible for other forms of student loan relief. For those serving on active duty, there is an option to lower the interest rate on student loans taken out prior to military service to 6%. The Public Service Loan Forgiveness (PSLF) program is another option available to those who serve in qualifying public service positions for a total of 10 years. The PSLF offers loan forgiveness and income-driven repayment plans.
It is important to carefully consider the terms and conditions of the SLRP and other student loan relief programs before making any decisions. The eligibility criteria, benefits, and requirements may vary depending on the branch of the military and the specific circumstances of the individual. Seeking guidance from official sources, such as the military branch's recruitment office or financial assistance programs, can help individuals make informed choices about their student loan repayment options.
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Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) Program was established by Congress in 2007 to encourage Americans to enter the public service sector. The program promises to forgive remaining student loans after 10 years of service in qualifying public service positions and 10 years of minimum payments. The military is considered a public service, and active-duty members may be eligible for the PSLF program.
The PSLF program is available for borrowers with federal student loans. Active-duty members may also be eligible for an income-driven repayment plan, where the amount owed each month is tied to income and family size. Other benefits for federal student loans during active-duty military service include loan deferment, forbearance, cancellation, suspension of interest accrual, or other relief.
The Servicemembers Civil Relief Act (SCRA) can help with private loans and other debt. Active-duty members can contact their student loan servicer to request an interest rate reduction to 6% on all student loans taken out before their military service. For private student loans, a written request may be required, along with a copy of the orders calling the individual to active duty.
The Student Loan Repayment Program (SLRP) is another option for active-duty members who agree to serve in specific roles or occupations. The National Guard's repayment amount is up to $50,000, but benefits can vary based on funding. After each year of active duty, the service branch will make a payment of 1/3 or $1,500 (whichever is greater) on the remaining original unpaid principal balance. It is important to note that SLRP does not apply to private loans.
Individuals employed by organizations with substantially illegal purposes are not eligible for PSLF, as per a 2025 update by the White House.
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Servicemembers Civil Relief Act (SCRA)
The Servicemembers Civil Relief Act (SCRA) provides financial and legal protections for active-duty service members, including National Guard and reserve members, and their families. The SCRA covers a range of areas, from mortgages to life insurance, and can help with private loans and other debt.
One of the key benefits of the SCRA is the ability to lower the interest rate on debts incurred before entering active duty to 6%. This includes credit card debts, car loans, business obligations, some student loans, and other fees and charges. The reduced interest rate for mortgages is valid during active military service and for one year after. To obtain this interest rate reduction, individuals can contact their student loan servicer directly and request this option. For private student loans, a written request may need to be sent to the servicer, along with a copy of the orders calling the individual to active duty.
The SCRA also allows for the termination of certain contracts, such as automobile leases and cell phone service agreements, under specific circumstances related to active duty. It protects individuals from property repossession or contract termination for non-payment during their military service without a court order. Life insurance coverage cannot be terminated, and no additional premiums can be required for those in military service.
Additionally, the SCRA enables professionals in certain fields, such as healthcare and legal services, to suspend their professional liability insurance policies by providing a written request to the insurance carrier. Any premiums paid while on active duty must be refunded, and insurance can be reinstated within 30 days of release from active duty.
It is important to note that the details of the SCRA can be complicated, and seeking professional advice on how it applies to individual circumstances is recommended. Service members and their families can contact their nearest legal assistance office for help in meeting their financial obligations and understanding their rights under the SCRA.
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Veterans Total and Permanent Disability Discharge
The military offers several programs to help service members pay off their student loans. These include the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. However, these programs are typically for active-duty members and do not always apply to private student loans.
In recognition of the fact that tens of thousands of veterans have been denied their statutory right to student loan discharges due to service-related total and permanent disabilities, the Department of Education has issued interim final regulations to amend and update the regulations for total and permanent disability student loan discharge for veterans. These new regulations, which came into effect on July 1, 2020, remove administrative burdens that may have prevented eligible veterans from obtaining loan discharges.
Under the new regulations, the Secretary will consider a borrower for whom data is obtained from the Department of Veterans Affairs showing that the borrower is "totally and permanently disabled" to be eligible for discharge and will not require additional documentation to discharge the borrower's loans. This applies to the Federal Direct Loan Program, the Federal Family Education Loan Program, and the Federal Perkins Loan Program.
The National Guard’s general repayment amount is up to $50,000, but benefits can fluctuate based on funding issues. 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 total remaining original unpaid principal balance. It is important to note that these payments are subject to taxes in the year they are paid.
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Army Student Loan Repayment: Active Duty program
The U.S. Army offers a Loan Repayment Program (LRP) to highly qualified applicants entering the Army. The program incentivizes applicants by offering to repay part of a soldier's qualifying student loans. However, only specified Military Occupational Specialties (MOSs) qualify for the LRP. The LRP is available for soldiers in the Regular Army, Army National Guard, and Army Reserve, whether on active duty or retired.
The Army's LRP repays close to $65,000 of outstanding student loan debt. However, it is important to note that the program does not apply to all MOSs, and the benefits may fluctuate based on funding issues. The National Guard's repayment amount, for example, was up to $50,000 in July 2023, but they ceased payments to soldiers for student loan debt within the Student Loan Repayment Program (SLRP).
The SLRP is another option available to active-duty members who agree to serve in specific roles or occupations. Under the SLRP, soldiers can select the loan repayment option when enlisting for a certain number of years, typically five or six.
Additionally, the Army offers the Federal Perkins Loan Cancellation Program, which allows eligible soldiers to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. This program is available to active-duty soldiers who have served at least one year in hostile fire combat situations.
Furthermore, the Army provides education benefits such as the GI Bill, which helps current and former soldiers who have served for at least three years pay for college, graduate school, trainings, certifications, and more. The Green to Gold program is another option for active-duty soldiers seeking to complete a bachelor's or graduate program while earning a commission as an Officer.
It is worth noting that the Army's loan repayment and forgiveness programs generally do not cover private loans, and some benefits may be restricted to federal student loans.
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Frequently asked questions
The US military offers programs to help service members repay their student loans. While the military doesn’t erase all debts, their financial assistance can be a big help to families who aren’t well off.
PSLF provides full student loan repayment assistance for qualified people. To qualify, you must have made at least 120 payments while serving full-time duty in the military or another qualifying non-profit entity. PSLF is available to personnel outside of the military.
SCRA makes it more manageable for active-duty members to pay off their outstanding debt. It stipulates that active-duty members can enjoy a reduced interest rate of 6% for loans taken out before they go into active service.
SLRP is a program for active-duty members who agree to serve in specific roles or occupations. The National Guard’s repayment amount is up to $50,000, but benefits can fluctuate based on funding issues. The Army will pay up to 33.33% of your principal balance each year for three years, and you could receive up to $65,000 in loan assistance.
LRP is a special incentive that the Army offers to highly qualified applicants entering the Army. The Army will repay part of a Soldier's qualifying student loans.
