Army Student Loan Repayment

The loan repayment program is offered to highly qualified individuals joining the army. The army under this program pays off half of the student loan provided. As long as the individual has taken part in Military occupational specialties specified by the Secretary of the Army enlisting as a Regular or Regular Reserved army personnel.

The MOSs is necessary for an individual before being offered LRP so as to get a half or full payment done on the student loan by the army because the individual should have a 3 year service period with him/her.

Table of content

Regular Army: Active Duty
Regular Army:Reserved or Retired
Army National Guard:Army Active Under Title 10 USC
Army National Guard:State Active Duty
Army National Guard:Drilling
Army National Guard:Retired
Army Reserve:Active Duty
Army Reserve:Drilling
Army Reserve: Retired

Regular Army: Active Duty

The Regular Army personnel are the soldiers which are the full time soldiers which can be deployed at any point of time or during Federal interest risk. The active duty soldiers are the main troops which are used in combat on frontlines.

Fact about Army active

The Loan repayment program is the army issued offer to it’s qualified individuals entering the army. Under this program the army offers to pay the amount of the qualified individual who has taken a student loan.The benefits of LRP is that the army is going to pay of about 33.33% of your principal balance less taxes.

Any loan sanctioned should be registered under the Higher Education Act of 1965,being registered under this act the loan qualifies to be paid by the US Army.

Eligibility Criteria For Regular Army: Active Duty

The individual has a 3 year service record.
The high school diploma with a 50% or more.
The individual must decline the Montgomery Gi BILL in writing.
During enlistment the soldiers have to give in writing for the Loan Repayment Program.
The loan should be insured under the Higher Education Act1965.
The loan should not be in Default.

Benefits of Regular Army: Active Duty

The army will be paying 33.33% of the principal amount less taxes.
Any loan insured under the Federal Family Education Loan program, William D Ford Federal Direct Loan Program, Federal Perkins Loan.

Loans Eligible for Active Duty

Parent Loan For UG student.
Supplemental loans.
William D Ford Loan Repayment Program.
Consolidated Loan.

Loans Not eligible For Active Duty

State Funded Loans.
Private Loans.
Equity Loans.
USAA loans(Personal Loans to Army Personnel).
Parent loan taken for someone else.

Regular Army: Reserved or Retired

The Reserved Army personnel are the soldiers which are technically backup soldiers who are also called reserves. There is also a category of retired under this head which means no army combatant. The Reserve soldier is at the discretion of the Governor of the state unless told otherwise by the president of the united states of America.

Facts about the Army Reserve

The Army Reserve Repayment Program is a selected reserve which is used to pay a substantial amount of the soldier’s educational debt,it depends on the soldier’s enlistment date and whether or not he is eligible or not.

The benefit of the Army Reserve repayment program is that the army will withhold the payment and exclude all the taxes incurred on the interest before transferring it to the lenders.

Benefits of get in an Army student loans

The benefits of Army student loans is that the army will be paying about 33.33% of the outstanding or due principal amount less taxes.

All the other expenses other to be beared by the soldier himself and payment of $1500 is done on a yearly basis.

Eligibility Criteria

The loan should be insured with the Federal Family Education Loan Program of Higher Education Act of 1965.
The loan should be under the head of Perkins Federal loan Scheme.
Consolidated loans.
PLUS(Parent loans for undergraduate students).
Willian D Ford Loans Schemes.

The Loan is not qualified for certain reasons which are as follows:

If you have a private loan it will qualify under the Higher Educational Act of 1965.

Equity loans don't come under this act.
Consolidated from others like wife,friends,relatives, etc.
Any state funded loan will not qualify for army student loans because the government will be involved in any state affairs.

It should be noted that the Retired Army personnel are not eligible for LRP(Loan Repayment Program).

Army National Guard: Army Active Under Title 10 USC

The Army National Guard in Active Duty is termed as the full time military personnel and they can be deployed at any time deemed fit by the US army, but in national guard personnel are not considered as a Full time yet they have the title of Active Duty but they can be deployed at any time. The Army National Guard Active Duty Under title 10 USC the soldier is considered to be a full time and not just and Active Duty.

Eligibility Criteria For Army National Guard

The soldier must have at least 6 years of service.
The Soldier must not enlist for 09R SMP(Simultaneous Membership Program) cadet.
The high school diploma must contain 50% or more.
The soldier must have the LRP guaranteed in the enlistment contract.
The loan must be guaranteed before enlisting for active duty.

Facts about SMP(Simultaneous Membership Program)

This program helps the student to be part of both Simultaneous Membership Program and Reserve Officer Training Crops,the student gets the benefits of 100% tuition assistance with GI bill and a Guaranteed Reserve Force Duty scholarship.

The cadet must have to complete a month training with the national guard where he /she is paid to perform once a month with the national guard unit.

Army National Guard: State Active Duty

The army national guard:State active duty are the state troopers appointed by the governor of the state and are deployed at the time of man-made disaster.

Eligibility Criteria for Army National Guard: State Active Duty

Soldiers have to have 6 years of service record.
Soldiers must decline the enlistment in the Montgomery GI bill.
The soldier must have a loan Repayment program guaranteed in written.
The soldier must not enlist in 09R SMP Cadet.
The loan must be insured before enlisting/Active Duty.
The soldier must have to score 50% or more in High School.

Army National Guard: Drilling

The army national guard drilling is an event which is done within the training period of a soldier and in this event the drilling commence for about 4 hours and it works as 4 drills per week and a considerable pay is given to the trainee, whereas the army reserve can also be involved in this training.

Eligibility Criteria

Soldiers have to have 6 years of service record.
Soldiers must decline the enlistment in the Montgomery GI bill.
The soldier must have a loan Repayment program guaranteed in written.
The soldier must not enlist in 09R SMP Cadet.
The loan must be insured before enlisting/Active Duty.
The soldier must have to score 50% or more in High School.

Struggling with your monthly payments? Learn more about the student loan repayment options available.

Army National Guard: Retired

As a retiree there is not a lot of information about this but a retiree of the Army National Guard can be deployed as per orders. An army national guard retiree is not eligible for any kind of loan repayment program.

Comparison between Army Regular and Army National Guard

Regular Army personnel are priority force called at the time of federal interest is at stake, whereas the Army National guard plays twin function of both state and federal forces.
Regular Army personnel are never used as local law enforcement units, whereas the Army National Guard can be used as one.
Regular Army troops are under the command of the United States Army, whereas the Army National Guard is under the control of both Federal and State.
The regular Army Reserves also play the same role but they are the reserves, whereas the Army National Guard Reserves doesn’t play any kind of important role.
The regular Army Reserves are under the control of the United States Reserve Command, whereas the Army National Guard is under the control of the Governor of the state unless told otherwise by the president of the US.

Army Reserves: Active Duty

The Army Reserves Active Duty plays an important role in the battlefield because they are the reserves, they can be called upon any time as deemed fit by the situation or by the president of the US.

The Reserve army personnel is a person who is not a full time in the US army who has to live on the base itself and may be called upon any time deemed fit by the president of the US.

Eligibility Criteria

Soldiers have to have 6 years of service record.
Soldiers must decline the enlistment in the Montgomery GI bill.
The soldier must have a loan Repayment program guaranteed in written.
The soldier must not enlist in 09R SMP Cadet.
The loan must be insured before enlisting/Active Duty.
The soldier must have to score 50% or more in High School.

Army reserve: Drilling

The Army Reserve or the National Guard are not full time personnel’s but they have to drill one per week and 2 per year, the pay which is given is very considerable and it is also called Drillpay.

Eligibility Criteria

The Army Reserve are not full timer’s but are eligible for the Drillpay for the weekend as they serve their duties as planned.
If the reserve soldier is placed on active duty he/she will be eligible for the same pay.

Army Reserve: Retired

The Army Reserve Retired is called a non-regular retirement who has more than 20 years of experience or more of the qualifying services are now eligible for retirement. Sometimes a non experienced soldier qualifies for this.

Eligibility Criteria

As being the Army Reserve and that too a retired one the soldier is not eligible for LRP(loan Repayment Program).

Conclusion

The army would be paying only the outstanding principal amount and all the transactions are made directly to the lender and the amount which is paid is tax free, the first installment is made when the soldiers have completed one year of their service, but the Army will not be paying the rest amount if the loan is recapitalized by the borrower.

Additional payments are made on the loan repayment program whether or not the soldier is an active duty or a Reserved duty.you lose eligibility if you separate before 1 year but if 1 year is complete and then the soldier is separated he/she is still eligible if the LRP is shown as physical disability,etc.

student loans are a great way to tackle the rise in tuition costs, it is advised to first exhaust yourself of all your federal student loan options before you explore private student loans.