First off, before we get into Military student loan repayment, chances are good that you have either served or are intending to serve, so we want to just extend a big thank you for providing your service to our country! The Military student loan repayment program was started as an incentive for people to enlist and serve. The rules of eligiblity are that you can get a portion of your debt paid off for non prior enlistments of the Military on your eligible loans for college. It is important to know that Officers do not qualify. Below will be information on the maximum debt totals that can be wiped away as well as qualifying loans and eligiblity requirements.
Military Student Loan Repayment – Maximum Forgiveness Amounts
Currently the Congress has stated for Military student loan repayment that the maximum amount that can be forgiven on student loan debt for non prior service members is up to 65,000 dollars. Although this is a general rule, each branch of service has it’s own maximum forgiveness totals. Here are the totals of military student loan repayment for each branch:
- Active Duty can get one up to 33 1/3 pecent paid off of their loan each year that they provide their service or 1,500 dollars whichever is the greater total. This payment process is started after the first year of service.
- Army and Navy pay up to the maximum for non prior service enlistment for active duty.
- Reserve enlistments in the Army can get up to 20,000 dollars of their debt wiped away, which includes the national gaurd as well.
- Air Force service will get enlistment members up to 10,000 dollars of their loan debt.
- Navy Reserves offers up to 10,000 dollars in military student loan repayment to those enlisted as Reserves.
- CLRP through the Air Force Guared can garner up to 20,000 dollars off student loans by working specified jobs that are experiences shortages.
- Army and Navy Reserves can receive up to either 15 percent off their loans or 1500 dollars whichever amount is deemed greater
- The Air National Guard can get eligible memebers up to 15 percent or up to 5000 dollars of their loan, depending on which amount it greater.
Loans That Qaulify For Military Student Loan Repayment
Not all loans qualify for the Miltary student loan repayment program. Here are both the qualifying loan programs that you can use for Military student loan repayment.
- Stafford Loans
- Parent PLUS Loans
- Consolidated Loan Program
- Federally Insured Student Loans
- Supplemental Loans For Students
- Perkins Loans
- Auxillary Loan Assistance For Students
Military Student Loan Repayment Qualifications
Here are the qualifications one needs to meet in order to participate in Military student loan repayment:
- Active members should not have any past military experience.
- 6 year enlistment is required if you are going to serve in the following: Army and Navy Reserve as well as the Army & Air National Guard.
- You must enlist with a high school education in the Army as well as received a score of 50 or above when taking the Armed Forces Vocational Aptitute Battery testing.
- On your contract of enlistment, the CLRP needs to be annotated.
- For branches where shortage jobs are worked to receive loan forgiveness, you need to be working in one of the specified jobs that are included in the qualifying list of jobs. A local recruiter can explain to you which jobs qualify.
Other Details of Military Student Loan Repayment
- The amount paid off on your loans is considered to be taxible income, that needs to be paid to the IRS.
- Any interest that has piled up is currently not eligible for loan forgiveness.
- Often times participants in military student loan repayment programs can get their student loans defered, which you should contact your lender to see if this is a possiblity