Loan Repayment Program
For every year of enlisted service you complete, the Army’s Loan Repayment Program (LRP) will pay off 1/3 of the principal on each of your student loans or pay off $1,500 of the principal on the loans, whichever amount is larger. VAJoe.com can help you find schools where you can use federal student loans that can be repaid with the Loan Repayment Program.
Highlights
The Army will help you pay off the following types of student loans:
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Parent Loans for Undergraduate Students (PLUS)
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Supplemental Loans for Students (SLS)
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Stafford Loans
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Perkins Loans
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William D. Ford Loans
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Consolidated Loans (loans must be in soldier’s name)
Drawbacks
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Loan Repayment Program payments are taxable income in the year they are paid.
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You are not eligible for the Loan Repayment Program if:
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You are an officer.
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You are an enlisted servicemember who is becoming an officer before completing your initial enlistment.
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You cannot receive Loan Repayment Program and Montgomery GI Bill benefits at the same time. If you are currently receiving GI Bill benefits, you must discontinue them within three days of beginning active duty.
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These loans do not qualify for the Loan Repayment Program:
- Private loans
- Equity loans
- State-funded loans
- Institution loans
- Consolidated loans in someone else’s name
