The Army Loan Repayment Program (LRP) is a special incentive that the Army offers to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier's qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.
Program Details
- Repays up to $65,000 of qualifying student loan principal (minus taxes)
- Pays one third of the remaining principal balance annually or $1,500 (whichever is greater)
- Payments begin after the first year of completed service
- Payments are made directly to the loan provider
- Applies only to qualifying federal and approved educational loans
Eligibility Criteria
- Must enlist in the U.S. Army as an Active Duty Soldier
- Must commit to at least three years of service
- Must decline the Montgomery GI Bill in writing (DD Form 2366)
- Must have LRP included in enlistment contract
- Must be a non-prior service enlistment
- Must have a high school diploma and an AFQT score of 50 or higher
Eligible and Ineligible Loans
- Eligible loans include Federal Direct Loans, Stafford Loans, Perkins Loans, PLUS Loans (for the borrower), and certain consolidated loans
- Loans must be made under Title IV, Part B, D, or E of the Higher Education Act
- Ineligible loans include private loans, state-funded loans, institutional loans, personal or equity loans, and loans taken out for others
- Interest on loans is not repaid—only the original principal balance qualifies
Important Considerations
- Payments are considered taxable income
- No reimbursement is provided for payments made prior to enlistment
- Soldiers must remain in their qualifying MOS to continue receiving benefits
- Failure to complete the service obligation may result in loss of benefits, with limited exceptions
The Army will repay 33 1/3% of the outstanding principal balance, less taxes of the Soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) up to graduation cap on a pile of moneythree years total. Loans must not be in default before entering active duty, and during the repayment process.
