Janice Lozano
The US Army offers a range of financial incentives to soldiers and their families, including student loan repayment programs. The Army Reserve Student Loan Repayment Program (SLRP) will pay up to 15% of a soldier's student loans, up to a maximum of $20,000, provided they serve for at least six years. The Army's Loan Repayment Program (LRP) repays up to $65,000 of outstanding student loan debt for those who qualify. Additionally, the Army 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.
| Characteristics | Values |
|---|---|
| Loan Repayment Program (LRP) | The Army will repay part of a Soldier's qualifying student loans. |
| Student Loan Repayment Program (SLRP) | The Army Reserve will pay up to 15% of your student loans, up to a maximum of $20,000. |
| 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 | Provides soldiers in active duty, the Army Reserve, or the Army National Guard with up to $4,000 annually towards school or professional training. |
| Federal Perkins Loan Cancellation Program | Gives soldiers the chance to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. |
| Public Service Loan Forgiveness (PSLF) | Forgiven after the borrower makes 120 qualifying payments while working full-time with the military or another qualifying non-profit. |
| Montgomery GI Bill (MGIB) | Provides up to 36 months of education benefits for eligible Service members and Veterans for college, business, technical, or vocational school. |
| Montgomery GI Bill - Select Reserve (MGIB-SR) | Receive monthly payments for going to school. |
| Air Force College Loan Repayment Program (CLRP) | Awards up to $10,000, made in yearly payments of 33.33% of the debt or up to $1,500. |
| Health Professions Loan Repayment Program | Provides up to $40,000 per year in repayment assistance to new accessions that enter the Navy and current medical personnel that extend their active duty commitments. |
| National Guard LRP | Repays 15% of the outstanding principal balance or $1,500 per year, whichever is greater. The maximum amount of assistance is $20,000. |
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What You'll Learn
Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is a program that helps employees reduce their student loan debt incurred to support courses of study already completed by them or their children (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 have arrived 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 greater.
- Not have any conduct or performance issues that would preclude them from eligibility.
- Commit to at least 3 years of service with the Department via a service agreement.
It is important to note that employees in certain non-career type appointments, including temporary employees and political appointees, are not eligible to participate in the SLRP. Additionally, employees with conduct or performance issues may also be ineligible.
The U.S. Army also offers its own version of the SLRP, where they repay close to $65,000 of outstanding student loan debt for eligible soldiers. To qualify for the Army's SLRP, soldiers must meet certain requirements, including being a non-prior service applicant, a secondary school graduate, and enlisting for a three-year term in a Military Occupational Specialty (MOS) that offers the LRP.
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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 Army. The LRP repays close to $65,000 of outstanding student loan debt. However, only specified Military Occupational Specialties (MOSs) qualify for the LRP.
To qualify for the LRP, applicants must meet certain requirements. Firstly, applicants must be non-prior service and must be secondary school graduates. They must disenroll from the Montgomery GI Bill and have incurred loans prior to entering active duty. Additionally, applicants must enlist for a three-year term in an MOS that offers the LRP. It is important to note that applicants must request a deferment or forbearance on their loans from their lender, which is subject to bank approval.
The LRP covers various types of loans, including the Stafford Student Loan, the Perkins Loan, the Federally Insured Student Loan, and Auxiliary Loans to Assist Students. The program also includes the Federal Perkins Loan Cancellation Program, which allows eligible soldiers to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. It is important to note that this program does not apply to Stafford or PLUS loans.
The Army also offers other tuition assistance and career advancement programs, such as the Army 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 Reserve Officers' Training Corps (ROTC) offers scholarships that help cover tuition and school supply costs for those working towards becoming commissioned Army Officers.
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Federal Perkins Loan Cancellation Program
The Federal Perkins Loan Cancellation Program is a benefit offered by the U.S. Army that allows soldiers to cancel up to 100% of their Federal Perkins Loans or National Direct Student Loans. This program is specifically designed for soldiers who have served or are serving in hostile fire or imminent danger pay areas. To be eligible for this program, soldiers must have served in an area that qualifies for Special Pay under section 310 of title 37 of the United States Code. It's important to note that this benefit does not apply to Stafford Loans or PLUS Loans.
The Federal Perkins Loan Program offers a variety of forbearance, deferment, and cancellation options. Active-duty soldiers can defer repayment of their Perkins Loans if they are serving in connection with a war, military operation, or national emergency. This deferment period is typically 180 days and is available to soldiers who qualify for specific periods of service, including those that began on or after October 1, 2007. Additionally, members of the National Guard or Armed Forces Reserve, as well as retired members of the Armed Forces, are eligible for a 13-month deferment on repayment of their Perkins Loans after completing their active duty service if they were enrolled in a postsecondary school.
It's important to note that the cancellation of Federal Perkins Loans is not immediate. A school must cancel up to 50% of the outstanding balance on a Perkins Loan for active-duty service that ended before August 14, 2008, in an area of hostilities that qualified for special pay. The cancellation rate is 12.5% of the original loan principal, plus the interest accrued during the year of qualifying service, for each complete year of service. However, with the Higher Education Opportunity Act (HEOA), borrowers can now receive up to 100% cancellation of their Perkins Loans in increments of 15% for the first and second years of service, followed by 20% for the third and fourth years, and so on.
The Federal Perkins Loan Cancellation Program is just one of the many benefits offered by the U.S. Army to assist soldiers with their educational expenses. The Army also offers the Loan Repayment Program (LRP), where the Army repays a portion of a soldier's qualifying student loans. Additionally, 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. These programs demonstrate the U.S. Army's commitment to supporting the educational pursuits of its soldiers.
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Tuition Assistance
The U.S. Army offers a Tuition Assistance program that helps soldiers in active duty, the Army Reserve, or the Army National Guard with up to $4,000 annually towards school or professional training. The Army also offers a Loan Repayment Program (LRP) that repays close to $65,000 of outstanding student loan debt.
To qualify for the LRP, you must meet certain requirements, including:
- Being a highly qualified applicant entering the Army
- Having a specified Military Occupational Specialty (MOS)
- Enlisting for a three-year term in an MOS that offers the LRP
- Requesting a deferment or forbearance on your loan from your lender (this is not automatic and is subject to bank approval)
- Having incurred your loan prior to entry on active duty
The LRP is available for the following types of loans:
- Stafford Student Loan (formerly the Guaranteed Student Loan)
- Perkins Loan (formerly the National Direct Student Loan)
- Federally Insured Student Loan
- Auxiliary Loans to Assist Students
- Parents Loans for Undergraduate Students
In addition to the LRP, the Army also offers the Montgomery GI Bill (MGIB), which provides up to 36 months of education benefits for eligible Service members and Veterans. The MGIB can be used for college, business, technical, or vocational school, as well as apprenticeship, on-the-job training, and correspondence courses.
The Army also offers the Federal Perkins Loan Cancellation Program, which allows Soldiers to cancel 100% of their Federal Perkins Loans or National Direct Student Loans. This program is only available to Active-duty Soldiers who have served at least one year in hostile fire combat situations.
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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 public jobs while making 10 years' worth of minimum payments. To qualify for the Public Service Loan Forgiveness Program, individuals must be employed full-time, which is considered to be at least 30 hours a week or what the employer considers full-time, and make 120 monthly and on-time consolidated and reduced payments.
The Army also offers its own Loan Repayment Program (LRP) to highly qualified applicants. The LRP repays up to $65,000 of outstanding student loan debt. To qualify for the LRP, applicants must meet certain requirements, including enlisting for a three-year term in a Military Occupational Specialty (MOS) that offers the LRP and requesting a deferment or forbearance on their loan from their lender. The Army's Tuition Assistance program also helps soldiers in active duty, the Army Reserve, or the Army National Guard with up to $4,000 annually toward school or professional training.
Additionally, the Federal Perkins Loan Cancellation Program allows 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.
It is important to note that individuals employed by organizations with substantially illegal purposes are not eligible for public service loan forgiveness.
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Frequently asked questions
The Army Reserve Student Loan Repayment Program (SLRP) will pay up to 15% of your student loans, up to a maximum of $20,000, if you serve for at least six years.
You can get up to $50,000 toward student loan payments if you are an Army Reserve soldier with prior military service.
The maximum benefit is $10,000, except for selected specialties that qualify for up to $40,000 as the maximum benefit.
The Loan Repayment Program (LRP) is a special incentive offered by the Army to highly qualified applicants. Under the LRP, the Army will repay part of a Soldier's qualifying student loans.
You are entitled to $4500 in Tuition Assistance annually as an Army soldier. This is paid through Army Ignited. You can also qualify for the Montgomery GI Bill - Select Reserve (MGIB-SR) and receive monthly payments for going to school.
