Savanna Hoffman
The US military offers several programs to help service members and veterans repay their student loans, including the Army Student Loan Repayment Program, the Army Credentialing Opportunities Online (COOL) program, and the Army Loan Repayment Program (LRP). While these programs don't erase all debts, they can provide significant financial assistance and even offer full loan forgiveness in certain circumstances. People in the Army Reserve with prior military experience may be eligible for up to $50,000 in student loan payments, while the Army's LRP program can repay close to $65,000 of outstanding student loan debt.
| Characteristics | Values |
|---|---|
| Army Credentialing Opportunities Online (COOL) program | Helps soldiers find and pay for certifications or licenses for Army and private-sector jobs |
| Army Tuition Assistance program | Offers up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard |
| Army Loan Repayment Program (LRP) | Repays close to $65,000 of outstanding student loan debt for eligible soldiers |
| Federal Perkins Loan Cancellation Program | Allows eligible active-duty soldiers to cancel 100% of their Federal Perkins Loans or National Direct Student Loans |
| Public Service Loan Forgiveness | Provides full student loan repayment assistance for qualified public service employees, including military personnel |
| Veterans Total and Permanent Disability Discharge | Offers the possibility of clearing all student loan debt for veterans with service-related disabilities |
| National Defense Student Loan Discharge | Offers up to 100% forgiveness of the outstanding principal balance for individuals who have served the nation |
| Student Loan Repayment Program | Exclusive to Coast Guard members, offering up to $60,000 in loan assistance and up to $120,000 for doctors, dentists, and other healthcare professionals |
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What You'll Learn
Army Credentialing Opportunities Online (COOL) program
The US Army offers the Credentialing Opportunities On-Line (COOL) program to help soldiers find and fund certifications and licenses for a wide range of Army and civilian jobs. The program provides detailed information on certifications and licenses related to military occupations. It also offers funding for approved credentials, which can be used alongside GI Bill benefits. This funding is voluntary but can be used for promotion points towards career growth and increased pay.
The Army Credentialing Assistance (CA) Program helps soldiers pay for courses and exams needed to obtain industry-recognised certifications. Funding covers classroom learning, books, materials, fees, exams, recertification, and related costs. Soldiers can request CA funding for any credential listed in Army COOL, and there is no additional service requirement to use the program. Officers who have graduated from the Basic Officer Leader Course are also eligible to use CA.
To request CA funding, soldiers must complete a CA request in ArmyIgnitED. Soldiers can work on any credential listed in Army COOL concurrently or sequentially up to their fiscal year limit of $4,500. It is important to note that the Army does not reimburse any credentialing-related expenses. Once the CA Central Billing Office (CBO) approves the CA request, soldiers will be enrolled in the approved course and receive the required course materials.
Soldiers who are unsure about what to pursue or what they may be eligible for can benefit from counselling assistance. The Army CA Virtual Counselling Cell is available to CONUS and OCONUS soldiers and can assist soldiers in pursuing Credentialing Assistance funding. Counselling sessions are available on Microsoft Teams.
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Army Loan Repayment Program (LRP)
The US Army offers the Loan Repayment Program (LRP) to help soldiers repay their student loans. The program can repay close to $65,000 of outstanding student loan debt. However, certain requirements must be met to qualify. Active-duty soldiers who have served at least one year in hostile fire combat situations are eligible for the Federal Perkins Loan Cancellation Program, which allows them to cancel 100% of their Federal Perkins Loans or National Direct Student Loans (excluding Stafford or PLUS loans).
The Army also provides other benefits to support education and training. The Army Credentialing Opportunities Online (COOL) program assists soldiers in finding and funding certifications or licenses for a wide range of Army and private-sector jobs. Additionally, the Army's Tuition Assistance program offers up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard.
It is important to note that there is no specific mention of the Army Reserves in relation to the LRP. However, a Reddit user mentions the Student Loan Repayment Program (SLRP) in the context of the Army Reserves, indicating that there may be a similar program or variation of the LRP available for reservists. This user shared their experience with SLRP, stating that it helped pay off their student loans, but they also mentioned encountering challenges and delays in receiving the benefits.
While the Army does not offer loan forgiveness specifically for spouses of service members, they do provide tuition assistance and career advancement programs for spouses. Additionally, members of the military who have been employed by the military or a qualifying public service job for the last ten years may be eligible for full forgiveness of their federal student loans. To qualify, individuals need to be employed full-time and make 120 monthly on-time consolidated and reduced payments.
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Federal Perkins Loan Cancellation Program
The Federal Perkins Loan Cancellation Program gives soldiers the opportunity to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. This program is not applicable to Stafford or PLUS loans. To be eligible, soldiers must be on active duty and have served a minimum of one year in hostile fire combat situations.
The Perkins Loan Forgiveness Program offers forgiveness benefits to Federal Perkins Loan borrowers who work in certain public service positions or are employed in specific occupations. This includes teachers in low-income schools, teachers of special education, and members of the U.S. Armed Forces serving in areas of hostility. The program provides up to 100% loan cancellation over a four to five-year period, with a percentage of the loan forgiven after each completed year of qualifying service.
The Institute of Student Loan Advisors (TISLA) is a non-profit organization that provides free advice and dispute resolution services to student loan borrowers. They specify that Perkins public service and employment-based cancellation amounts are not considered taxable income.
To apply for the Federal Perkins Loan Cancellation Program, individuals should contact the school they attended when they received the Perkins Loan or the designated Perkins Loan servicer, as specified by the school. The school will determine eligibility and require documentation to support the request for cancellation. It is important to note that there is no appeal process to the Department of Education, and any payments made while performing service for cancellation may not be refunded by the school.
While there is no specific mention of the reserves in relation to the Federal Perkins Loan Cancellation Program, the U.S. Army does offer other education and training benefits, including the Army's Tuition Assistance program, which provides up to $4,000 annually towards school or professional training for soldiers in active duty, the Army Reserve, or the Army National Guard. Additionally, the Army's Loan Repayment Program (LRP) can repay up to $65,000 of outstanding student loan debt for eligible individuals.
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Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) 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 service jobs, alongside 10 years of minimum payments. To qualify for the PSLF Program, individuals must be employed full-time, which equates to at least 30 hours per week, and make 120 monthly and on-time consolidated and reduced payments.
The Army also offers its own Loan Repayment Program (LRP), which repays up to $65,000 of outstanding student loan debt. To be eligible for the LRP, soldiers must meet certain requirements. The Federal Perkins Loan Cancellation Program is another option for soldiers, allowing them to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. This program is applicable to active-duty soldiers who have served for at least one year in hostile fire combat situations.
It is important to note that the PSLF Program has faced some criticism and changes in recent years. One of the criticisms is that it has misdirected tax dollars into activist organizations that may harm national security and American values. As a result, the current administration has taken steps to restore the PSLF Program by excluding organizations with substantial illegal purposes from the definition of "public service". This ensures that individuals employed by such organizations are not eligible for public service loan forgiveness.
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National Defense Student Loan Discharge
The National Defense Student Loan Discharge (NDSLD) program is designed to help military personnel who have taken out a Perkins Loan or a National Direct Student Loan and who have served for at least one year in an area of imminent danger and/or direct fire. If eligible, the program cancels 100% of the loan if military service began on or after August 14, 2008. For those whose service ended before that date, up to 50% of the loan can be canceled.
To qualify for the NDSLD program, you must meet the following criteria:
- Have a student loan accepted in the program. Common loans that qualify include Perkins, National Direct Student Loans, Stafford, PLUS Loans, and Consolidated Loan Program loans.
- Have enlisted for at least three years (six years in the Army and National Guard).
- Have a student loan that is not in default and that was taken out prior to enlistment.
- Have served for at least one year in an area of imminent danger and/or direct fire.
To apply for the NDSLD program, you must fill out a DD 214 discharge form and explain why you think you qualify. A commanding officer must certify the service member's service dates. The form and the explanation must be sent to the company servicing the loan. It is important to note that only a full year of active service qualifies for the program, and less than a year of active-duty service will not be eligible.
In addition to the NDSLD program, there are other programs that offer student loan relief for military members and veterans. These include:
- The Servicemembers Civil Relief Act, which caps interest rates on student loans obtained prior to the start of service at 6% during periods of active duty.
- Military Service Deferment, which allows for the postponement of repayment during active duty for wars, military operations, or national emergencies.
- Deferments After Active Duty, which lets veterans postpone repayment while they prepare to go back to school after active duty.
- An interest-free plan, where service members do not have to pay interest for up to 60 months while serving in a hostile area that qualifies for special pay.
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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, financial assistance is provided.
The amount of debt forgiven depends on how much money you owe, the type of student loans you’ve taken out, and whether you’re in the military full-time or part-time.
People in the Army Reserve with previous military experience can receive up to $50,000 in student loan payments.
The Public Service Loan Forgiveness program provides full student loan repayment assistance for qualified public service employees. To qualify, you must have made at least 120 payments while serving full-time in the military or another qualifying non-profit entity.
The National Defense Student Loan Discharge program offers up to 100% forgiveness of the outstanding principal balance. This program is exclusively available to individuals who have put their lives on the line for the nation.
