Lana Oconnell
The US military offers several programs to help service members repay their student loans, including the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. While the military doesn't erase all debts, their financial assistance can be beneficial to families who aren't well off. The amount of debt forgiven depends on factors such as the amount owed, the type of loan, and whether the service member is in the military full-time or part-time. Some specific examples include the Air Force College Loan Repayment Program (CLRP), which awards up to $10,000, and the Army Student Loan Repayment: Active Duty program, which offers up to $65,000 in loan assistance for those who enlist for at least three years.
| Characteristics | Values |
|---|---|
| Military loan forgiveness | The US military does not erase all debts but offers programs to help service members repay their student loans. |
| Loan Repayment Program (LRP) | The Army offers to repay part of a Soldier's qualifying student loans. |
| Qualifying for LRP | Only specified Military Occupational Specialties (MOSs) qualify for the LRP. |
| Public Service Loan Forgiveness (PSLF) | Available for military members working in qualifying public service positions. |
| Qualifying for PSLF | 10 years of public service and 10 years of continuous payments during the course of your service. |
| Servicemembers Civil Relief Act (SCRA) | Active-duty members can enjoy a reduced interest rate of 6% for loans taken out before active service. |
| Student Loan Repayment: Active Duty | Offers military student loan repayment assistance to people on active duty. |
| Qualifying for Student Loan Repayment: Active Duty | Enlist for at least three years and score 50 or higher on the Armed Services Vocational Aptitude Battery (ASVAB). |
| Health Professions Loan Repayment Program | Doctors, dentists, and other healthcare professionals on active duty or in the Army Reserve can qualify for up to $40,000 per year for up to three years. |
| Army National Guard | Ceased payments to soldiers for student loan debt within the Student Loan Repayment Program in July 2023. |
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What You'll Learn
Public Service Loan Forgiveness (PSLF)
If you are an active-duty service member in the military, you may be eligible for the Public Service Loan Forgiveness (PSLF) program. This program was established by Congress in 2007 to encourage Americans to enter the public service sector. The PSLF promises to forgive remaining student loans after 10 years of service in public jobs with minimum payments.
To qualify for the PSLF program, you must meet the following requirements:
- You must have federal loans.
- You must have worked in the military or another area of public service for a total of 10 years.
- You must have made 10 years of minimum payments during your service. These payments can be income-driven, which means the amount you owe each month is tied to your income and family size.
It is important to note that the PSLF program has specific definitions of "public service" that exclude organizations engaging in illegal activities or those that harm national security and American values.
In addition to the PSLF program, there are other forms of student loan relief available to active-duty service members, such as the Loan Repayment Program (LRP) offered by the Army. The LRP is a special incentive for highly qualified applicants, and the Army will repay part of the soldier's qualifying student loans. However, only certain Military Occupational Specialties (MOSs) qualify for the LRP, and there may be other restrictions or requirements.
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Loan Repayment Program (LRP)
The Loan Repayment Program (LRP) is a special incentive offered by the Army to highly qualified applicants entering the service. Under the LRP, the Army will repay part of a soldier's qualifying student loans. However, only specified Military Occupational Specialties (MOSs) qualify for the LRP. The Army's LRP only applies to certain loans and goes up to $65,000, requiring a 6-year commitment.
There is also the NIH Loan Repayment Program (LRP), which is a set of programs established by Congress to recruit and retain highly qualified health professionals for biomedical or biobehavioral research careers. The NIH LRP repays up to $50,000 annually of a researcher's qualified educational debt in exchange for a commitment to engage in NIH mission-relevant research.
Additionally, active-duty service members may be eligible for a 6% interest rate on all student loans taken out before their military service. If you serve on active duty for a total of 10 years, you may qualify for the Public Service Loan Forgiveness program.
The Army also offers a Student Loan Repayment Program for certain MOSs, but it depends on the job you sign up for, and you would need to speak to a recruiter for the current policy.
Other options for loan repayment or forgiveness while in the military include the Servicemembers Civil Relief Act (SCRA), which can help with private loans and other debt, and income-driven repayment plans.
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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 all active-duty service members, reservists, and National Guard members on active duty. The act postpones or suspends certain civil obligations to enable service members to devote their full attention to duty and relieve stress on their families.
Under the SCRA, creditors must reduce the interest rate on debts to 6% for liabilities incurred before entering active duty. This includes credit card debts, car loans, business obligations, some student loans, and other debts, as well as fees, service charges, and renewal fees. If the debt is a mortgage, the reduced rate extends for one year after active military service. It is important to note that creditors can challenge this provision if they believe your ability to pay a rate higher than 6% is not materially affected by your military service.
Additionally, the SCRA offers protections in other areas, such as allowing the termination of certain automobile leases, cell phone service contracts, and life insurance policies without penalty. It also ensures that property cannot be repossessed or seized for nonpayment of pre-service mortgage debt during or within nine months after active duty without a valid court order.
Service members can seek free help from the nearest legal assistance office if they need guidance on meeting their financial obligations or advice on how the SCRA applies to their individual circumstances.
While the SCRA provides some relief for student loan debt, there are also other programs available specifically for military members with student loans. These include the Public Service Loan Forgiveness (PSLF) program, income-driven repayment plans, loan deferment, forbearance, and the Army's Loan Repayment Program (LRP).
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Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is a program that enables employees to reduce their student loan debt incurred for courses of study they have completed or their child has completed, in the case of Parent PLUS loans. Payments are made directly to the employee's lender or loan servicing organization.
To be eligible for the SLRP, employees must:
- Occupy a pre-qualifying position or arrive at a pre-qualifying post during the annual open season application period.
- Have certain outstanding loans authorized by Title IV of the Higher Education Act of 1965 or Title VII of the Public Health Service Act with combined balances of $5,000 or more.
- Have no conduct or performance issues that would otherwise preclude them from eligibility.
- Commit to at least 3 years of service with the Department via a service agreement.
Employees in certain noncareer type appointments are not eligible to participate in the SLRP program. These include temporary employees serving on agency-unique Schedule B appointments, political appointees, consular adjudicators on limited noncareer appointments, and eligible family members serving on family member appointments.
It is important to note that the SLRP is not the only option for those seeking to join the military and reduce their student loan debt. The Army also offers a Loan Repayment Program (LRP) for highly qualified applicants. This program repays part of a soldier's qualifying student loans, but only specified Military Occupational Specialties (MOSs) qualify. Additionally, individuals with federal loans who plan to work in the military or another area of public service for 10 years are likely to qualify for income-driven repayment plans and loan forgiveness through the Public Service Loan Forgiveness (PSLF) program.
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Veterans Total and Permanent Disability Discharge
Military service does not directly pay for previous student loan debt. However, there are several forms of student loan relief available to active-duty service members and veterans.
Public Service Loan Forgiveness (PSLF)
If you plan to work in the military or another area of public service for 10 years and have federal loans, you likely qualify for an income-driven repayment plan and loan forgiveness through the PSLF program. Under this program, the amount you owe each month is tied to your income and family size.
Servicemembers Civil Relief Act (SCRA)
The SCRA can help with private loans and other debt. Active-duty service members may be eligible to have their interest rate lowered to 6% on all student loans taken out prior to their military service. To obtain this benefit, contact your student loan servicer directly or send a written request along with a copy of your active-duty orders for private loans.
Loan Repayment Program (LRP)
The Army offers the LRP as a special incentive to highly qualified applicants entering the service. Under this program, the Army will repay part of a soldier's qualifying student loans, but only for specified Military Occupational Specialties (MOSs).
Student Loan Repayment Program
The Army also offers a Student Loan Repayment Program for certain MOSs. This program applies to certain loans and only goes up to $65,000, requiring a 6-year commitment.
Veterans with a total and permanent disability may qualify for a discharge of their student loan debt. To qualify, a licensed medical professional in the United States must certify that the veteran is "unable to engage in any substantial gainful activity" due to a physical or mental impairment. The application for TPD discharge can be submitted digitally or by printing a pre-filled form from the StudentAid.gov website.
It is important to note that qualifying for these programs and benefits may require specific conditions and eligibility criteria. It is recommended to review the official websites and consult with relevant authorities for detailed information.
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Frequently asked questions
Military service does not erase all previous student loan debt, but there are several programs available to help service members pay off their student loans.
The military offers the Student Loan Repayment Program (SLRP) and the Public Service Loan Forgiveness (PSLF) program. The SLRP is for active-duty members serving in specific roles or occupations, while the PSLF is for service members working in qualifying public service positions.
The SLRP provides up to \$65,000 in loan assistance for federal student loans. The Army will pay up to 33.33% of the principal balance each year for three years.
To qualify for the PSLF program, you must work in the military or another public service area for at least 10 years and have made at least 120 payments while serving full-time.
