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Thread: Military paying back federal loans?

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    #1

    Military paying back federal loans?

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    I had one of the new guys ask me this today at our biannual briefing and I couldn't for the life of me answer him. No one else in the unit knew either.

    Basically, he wants to know if the military will pay back HIS student loans. When I was in the Guard some years ago, the STATE did, but I don't know about federal. He went to college before he entered the military; he went into the Reserves halfway through.

    (quick reference: until 2005, Guard TA was split up--25% was paid by the state; 75% by the federal govt. Reserves paid 100%. Now, the federal government pays ALL of the TA for Guard AND reserves.)

    Does the military pay back student loans acquired BEFORE the student entered the military? If so, how and what rate?
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    Quote Originally Posted by LittleBit84 View Post
    I had one of the new guys ask me this today at our biannual briefing and I couldn't for the life of me answer him. No one else in the unit knew either.

    Basically, he wants to know if the military will pay back HIS student loans. When I was in the Guard some years ago, the STATE did, but I don't know about federal. He went to college before he entered the military; he went into the Reserves halfway through.

    (quick reference: until 2005, Guard TA was split up--25% was paid by the state; 75% by the federal govt. Reserves paid 100%. Now, the federal government pays ALL of the TA for Guard AND reserves.)

    Does the military pay back student loans acquired BEFORE the student entered the military? If so, how and what rate?
    He needs to enlist (as in, be enlisted rather than officer, although there are some minor changes to that too) under the CLRP program: http://usmilitary.about.com/cs/joiningup/a/clrp.htm

    The College Loan Repayment Program is an enlistment incentive. (Note: The Army now offers this incentive with those who enlist under the Officer Candidate School Program). Like other enlistment incentives authorized by Congress, each of the services are free to offer the program, or not, as they see fit, in order to meet their established recruiting goals. Under the program, the military will repay a portion of eligible college loans for non-prior service military members. This program is for non-prior service enlisted personnel, only. Officers are not eligible.

    Congress has limited the maximum amount of payment by federal law to $65,000. However, within these limits, each of the services have applied their own maximums. At present, the Army and Navy will repay the maximum allowed by law for non-prior service active duty enlistments. The Army will pay up to $20,000 for Reserve enlistments (including the Army National Guard). The Air Force will repay up to $10,000 for non-prior service, active duty enlistments. Additionally, the Navy Reserves will repay up to $10,000 for Navy Reserve enlistments. The Marine Corps, Coast Guard, and Air Force Reserves do not offer the College Loan Repayment Program. However, the Air National Guard offers CLRP of up to $20,000, for designated shortage AFSCs (jobs).

    (for remainder of article, see link)
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    He's a PFC; he's no longer eligible because he's already enlisted?
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    Quote Originally Posted by LittleBit84 View Post
    He's a PFC; he's no longer eligible because he's already enlisted?
    According to the website, he's not eligible unless it was on the enlistment contract:

    Eligibility

    For active duty, must have no prior military experience
    In the Air Force and Navy active duty, must enlist for a minimum of four years. For the Army active duty, must enlist for a minimum of three years.
    For the Army and Navy Reserves, and Army and Air National Guard, must enlist for a minimum of six years
    For the Army, must have a high school diploma, and must have an overall score of 50 or higher on the Armed Forces Vocational Aptitude Battery (ASVAB).
    For the Army active duty, Army Reserves, Army National Guard, and Air National Guard, must enlist in a specific shortage MOS/AFSC (job) that qualifies for the program (Note: MOS's/AFSC's that qualify can change overnight, depending on the current needs of the service. See your local Recruiter for the latest information about jobs that qualify).
    For the Army Reserves/Army National Guard and the Air National Guard, the maximum amount repayable (up to $20,000) varies according to the MOS/AFSC (job) and unit assigned to.
    Active Duty must give up Montgomery GI Bill Eligibility (but, see info on the next page about this)
    For the Army and Navy Reserves, those with prior military service are eligible.
    The CLRP must be annotated on the enlistment contract.
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    Is there any other way to pay off student loans? If I can't give him good news about this, I'd liek to get him another way, lol
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    Quote Originally Posted by LittleBit84 View Post
    Is there any other way to pay off student loans? If I can't give him good news about this, I'd liek to get him another way, lol
    He needed to look into this before enlisting. If he's got a bachelor's degree and came in enlisted, he could have gotten the CLRP. Otherwise, he jeeds to just take part of his paycheck and pay off his loans. The programs were out there.

    One other option is to have him check into something like teaching, and he can have his loans forgiven if he teaches for five years.
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    #7
    You either get the student loan repayment program OR GI Bill, from what I remember when my DH was in the Army Reserve, and it's all in your initial enlistment contract at MEPS

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