Douglas Olsen
The US Army offers a College Loan Repayment Program (LRP) that National Guard soldiers can use to pay back their student loans. The LRP is available to prior-service soldiers enlisting in the National Guard who meet certain requirements, such as a six-year term of service and completion of basic combat training. The Army will repay a portion of the soldier's student loans annually, up to a maximum amount, after each year of service. However, there are some conditions and limitations to this program, including eligibility requirements and the exclusion of interest payments.
Characteristics and Values Table for the National Guard's Student Loan Repayment Program (LRP)/SLRP
| Characteristics | Values |
|---|---|
| Loan Repayment Amount | 15% of the outstanding principal balance or $1,500 (whichever is greater) annually, up to $20,000. |
| Loan Types Covered | Federal Family Education Loans, William D. Ford Federal Direct Loans, Federal Perkins Loans, and other educational loans. |
| Eligibility | Prior-service soldiers enlisting in the National Guard with a six-year term of service at a pay grade of E-7 or below. Basic Combat Training requirements apply. |
| Payment Processing | Automated for Reserve Soldiers through the RCMS website. Payments are made directly to the lender after one year of service. |
| Taxes | Payments made under LRP are considered taxable income. |
| Defaulted Loans | The Army will not pay on loans that are in default. |
| Early Separation | Soldiers may lose eligibility if they separate early. Exceptions include physical disability, hardship, or certain government discharges. |
| State Benefits | Vary by state; for example, Michigan pays up to $17,000 for college per year. |
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What You'll Learn
Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is a benefit offered by the National Guard to help soldiers and officer candidates with their student loan debt. The program is designed to provide assistance to those who have taken out qualifying federal loans to pursue their education while serving in the National Guard.
To be eligible for the SLRP, individuals must meet certain requirements. For prior-service soldiers enlisting in the National Guard, a minimum six-year term of service at the pay grade of E-7 or below is required, along with completion of Army or Marine Corps Basic Combat Training (BCT). They must also have less than 16 years of time-in-service upon enlistment and be Duty Military Occupational Specialty qualified (MOSQ) for their position. Current full-time National Guard service members on AGR or Mil-Tech status are not eligible for SLRP during re-enlistment.
The SLRP provides repayment of a portion of the soldier's qualifying student loans. The Army will repay up to 15% of the outstanding principal balance or $1,500, whichever is greater, after each year of service, up to a maximum of $20,000. It's important to note that the payments are made directly to the lender, and the first payment is released only after the completion of one year of service. Additionally, the interest accrued on the loans is not covered by the SLRP, and any loan in default is not eligible for repayment through this program.
To maintain eligibility for the SLRP, soldiers must remain qualified in their original Military Occupational Specialty (MOS) throughout their initial term of service. Early separation from service may result in the loss of eligibility for the program. However, there are exceptions to this rule, such as physical disability or hardship, where individuals may still qualify for prorated SLRP payments.
The SLRP is a valuable benefit offered by the National Guard to support the educational goals of its soldiers and officer candidates. By providing assistance with student loan repayment, the program helps to alleviate the financial burden associated with pursuing higher education, enabling individuals to focus on their military and academic careers.
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Loan repayment conditions
The National Guard offers a Student Loan Repayment Program (SLRP) to help service members repay federal loans. This program is available to prior-service soldiers enlisting in the National Guard who meet certain requirements. These requirements include enlisting for a six-year term of service at a pay grade of E-7 or below, completing Army or Marine Corps Basic Combat Training (BCT), and having less than 16 years of time-in-service upon enlistment.
The repayment amount under SLRP is $7500 or 15% of the loan balance every year for a six-year contract, with a maximum repayment of $50,000. However, the interest on the loans is not covered by the program, and it is important to continue making regular payments to avoid interest accruing. Additionally, current full-time National Guard service members on AGR or Mil-Tech status are not eligible to use SLRP for re-enlistment.
The College Loan Repayment Program (LRP) is another option offered by the Army to repay student loans. Under LRP, the Army will repay 15% of the outstanding principal balance or $1,500, whichever is greater, after each year of service, up to a maximum of $20,000. Similar to SLRP, LRP does not cover interest on the loans. Payments made under LRP are considered taxable income, and loans in default are not eligible for repayment. To maintain eligibility for LRP, soldiers must remain qualified in their original MOS throughout their initial term of service.
It is important to note that only full-time service in the National Guard or Reserve qualifies for loan repayment programs. Additionally, loans must be made, insured, or guaranteed prior to entry on active duty, and there is no reimbursement for loan payments already made.
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Eligibility requirements
The Loan Repayment Program (LRP) is a special incentive offered by the Army to highly qualified applicants. To be eligible for the student loan repayment program, you must meet the following requirements:
- Sign up for an original (first) active-duty enlistment of at least three years with a qualifying specialty, or contract as an officer candidate.
- If enlisting in the National Guard, you must enlist for a period of at least six years at a pay grade of E-7 or below into a qualifying position in an MTOE or medical TDA unit.
- Have a qualifying ASVAB score.
- Have a student loan that is not in default. The loan must have been made, insured, or guaranteed prior to entry on active duty.
- Must have completed Army or Marine Corps Basic Combat Training (BCT) previously. If you are prior-service Air Force, Navy, or Coast Guard, Army BCT must be completed within 365 days from the date of enlistment. Exceptions are made for Service members who previously served in Air Force or Navy special operations units.
- Must have less than 16 years of time-in-service upon enlistment/affiliation in the National Guard.
- Must be Duty Military Occupational Specialty qualified (MOSQ) for your position. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.
- Soldiers must remain qualified in their original MOS throughout their initial term of service.
It is important to note that the LRP is not available for current full-time National Guard Service members on AGR or Mil-Tech status. Additionally, the Army will not make payments on loans that are in default, and there is no reimbursement for any loan payments already made.
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Loan repayment process
The Loan Repayment Program (LRP) is available to National Guard service members, but there are specific requirements that must be met to qualify.
Firstly, loans must be made, insured, or guaranteed before entry on active duty. For prior-service soldiers enlisting in the National Guard, a six-year term of service at a pay grade of E-7 or below in a qualifying position is required, among other criteria. Current full-time National Guard members on AGR or Mil-Tech status are ineligible for LRP during re-enlistment.
Under the LRP, the Army will repay 15% 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 maximum of $20,000 (excluding taxes). Payments are made directly to the lender, but only after the member has completed one year of service, provided all initial entry training has been completed. The Army will not cover interest accrued on the loans, nor will it pay for loans in default.
To maintain eligibility, soldiers must remain qualified in their original MOS throughout their initial term of service. Early separation from service will result in the loss of eligibility for LRP, except in cases of physical disability, hardship, or certain convenience of the government discharges, where prorated LRP payments may be granted.
For Reserve Soldiers, the LRP payment process is automated, and they can access the RCMS website to initiate their payment processing for initial and anniversary payments.
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Federal Loan Repayment Program (LRP)
The Federal Loan Repayment Program (LRP) is a special incentive offered by the Army to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier's qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.
Prior-service soldiers enlisting in the National Guard are eligible for the LRP as a stand-alone incentive, provided certain requirements are met. These include a six-year term of service at a pay grade of E-7 or below into a qualifying position in an MTOE or medical TDA unit only. Additionally, Army or Marine Corps Basic Combat Training (BCT) must have been previously completed, with some exceptions for service members who previously served in Air Force or Navy special operations units. To remain eligible for the LRP, soldiers must not separate from service early. However, there are exceptions to this rule, such as physical disability or hardship.
The Army will repay 15% of the outstanding principal balance or $1,500, whichever is greater, after each year of service (up to $20,000). Payments made under the LRP are considered taxable income, and the Army will not pay for loans that are in default or for interest that has been capitalized into principal. The first payment is made after the member has completed one year of service and all initial entry training.
The LRP payment processing is automated for Reserve Soldiers, who can access the RCMS website to start their own LRP payment processing for initial and anniversary payments.
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Frequently asked questions
The Loan Repayment Program is an incentive for prior-service soldiers enlisting in the National Guard. The Army will repay 15% 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 $20,000, less taxes).
To be eligible for the LRP, soldiers must enlist in the National Guard for a six-year term of service at a pay grade of E-7 or below, into a qualifying position in an MTOE or medical TDA unit only. Additionally, Army or Marine Corps Basic Combat Training (BCT) must have been previously completed.
Soldiers can start their own LRP payment processing for initial and anniversary payments by accessing the RCMS website. For technical assistance and general inquiries, soldiers can contact the RCMS helpdesk at 1-800-339-0473.
