|
Back to Financial
Aid
-
Entered active duty from December 1, 1980 - September 30, 1981, or
after September 30, 1982. (Note: LRP was a test program in FY81
and became permanent October 1, 1982.)
-
Be a non-prior service accession.
-
Enlist with a high school
diploma.
-
Have an Armed Forces Qualification Test score of 50, or higher.
-
Enlist in a critical military occupational specialty (MOS). These
MOS change quarterly. Your local recruiter will have the current list.
-
Possess a loan that was made, insured, or guaranteed under the
Higher Education Act of 1965, Title IV, Part B, D, or E after October
1, 1975, and prior to entering active duty.
Note:
It is Army policy that no one be enlisted with a defaulted loan;
therefore, defaulted loans will not be repaid.
-
Individuals enrolled in the LRP earn 33 1/3 percent or $1,500,
whichever is greater, toward the remaining original unpaid principal
on all qualifying loans for each successfully completed year of
enlisted active duty up to $65,000.
(Note: Officers and enlisted members becoming officers prior to
completing their first year of active duty are not eligible for LRP.)
-
The LRP payments will only be authorized toward the remaining
original unpaid principal balances as verified at the time the soldier
enters active duty. Loans incurred after entering active duty will not
be re-paid. Interest that has been re-capitalized into principal will
not be re-paid.
-
Public Law precludes payments toward interest and the reimbursement
of payments made. Forbearances should be requested through the lending
institution as soon as possible. (Note: Military deferments are
only available for certain loans that were incurred prior to July 1,
1993. The law authorizing military deferments was rescinded in 1993;
therefore, loans incurred after July 1, 1993 must have a forbearance
to keep the loan in good standing.)
-
Payments will be made directly to the lender.
-
Payments made under the LRP are subject to federal and state taxes.
Payments are taxable in the year they are paid. Due to
administrative procedures for authorizing payments, it is not always
possible to authorize payments so that payment occurs one per year. It
is common, particularly for those soldiers entering active duty
between November and February, to get two payments paid in the same
calendar year. The Defense Accounting Service issues all W-2 forms.
-
The LRP is an enlistment incentive that must be included in the
enlistment agreement. If an individual enlists with LRP, they will
receive a DA Form 3286-66. This agreement must reflect LRP as the
incentive.
-
Public Law precludes anyone from receiving benefits for both the LRP
and MGIB for the same period of service; therefore, as a condition of
accepting LRP, disenrollment from the MGIB must be accomplished within
the first three working days of entering active duty. The guidance
counselor at the Military Entrance and Processing Station (MEPS) will
initiate the DD Form 2366 (Enrollment/Disenrollment Form for MGIB).
Anyone failing to disenroll will forfeit all claims to the LRP.
-
The Education Incentives and Counseling Branch (EICB) is
responsible for operating the LRP.
-
MEPS forwards documentation to EICB for all soldiers electing LRP as
an incentive. EICB forwards application packets to potentially
eligible LRP enrollees no later than the sixth month of active duty.
In some cases, the proper documentation is not received from MEPS;
therefore, EICB will request the necessary documentation from the
soldier prior to issuing an application packet. Any LRP enrollee who
has not received correspondence from EICB by their eighth month of
active duty should submit their DD Form 2366 and DA form 3286 to the
EICB.
-
Application packets contain basic information about LRP, instruction
letters for lenders, and a DD Form 2475 (DoD Educational Loan
Repayment Program Annual Application). Only those DD Forms 2475
issued by EICB are authorized for use (may be reproduced).
-
DD Forms 2475 must be completed and forwarded to the lender for loan
verification information. Payments will not commence until the loan is
verified.
-
Lenders are instructed to complete Section III and forward the form
to EICB. Upon receipt, loan information is entered into the LRP
database. Payments will be authorized on an annual basis. (Note:
The EICB only authorizes the payment of the loan. The Defense Finance
and Accounting Services - Indianapolis Center will issue a check
within 90 days.)
-
Annual verification is not necessary. Once payments begin, they will
be automated beginning on the anniversary of the service member's
entrance on active duty.
-
It is important to ensure that all qualifying loan verification
forms are returned to EICB. The soldier should remain personally
involved throughout the loan repayment process.
Qualifying
-
Parent Loans for Undergraduate Students (PLUS)
-
Supplemental Loans for Students (SLS)
-
Stafford Loans
-
Perkins Loans
-
William D. Ford Loans
-
Consolidated Loans (Note: Only loans incurred for the soldier’s
education will be paid)
Non-Qualifying
There are many loans that do not qualify. Individuals should ensure
loans are covered under the Higher Education Act of 1965, Title IV, Part
B, D, and E prior to signing the enlistment agreement. Listed below are
several of loans that are not covered under this Act:
Am I Eligible for the Loan Repayment Program
? FAQ
-
If a soldier
has documentary evidence and meets the eligibility criteria, then yes
an individual may be determined eligible. Primary documentary evidence
is the DA Form 3286-66, DA Form 3286-62/3/4, DD Form 2057-2, or any
written documentary evidence within the soldier's enlistment contract
are accepted as documentary evidence but may not be the only evidence
required to determine eligibility for the LRP.
-
If the
individual enlisted on or after July 1, 1985, he must also provide DD
Form 2366 indicating disenrollment from the MGIB. An individual may
mail the required documentation to determine eligibility for the LRP
to the Education
Incentives and Counseling
Branch.
Are officers eligible for the Loan Repayment
Program? FAQ
No, but if an individual enlists with the
LRP as part of his enlistment agreement, becomes an officer prior to his
third-year anniversary, and completes at least one year of active duty as
an enlistee, his loan may be prorated for the portion of the year served.
The individual must submit a copy of the Statement of Release or Discharge
from Active Duty, DD Form 214, MEMBER 4, in order for prorated payment to
occur. Forward the documents to: Education
Incentives and Counseling Branch.
When will repayment begin?
FAQ
Payment will be made after each completed year of active duty, up
to three years of payment. If an individual has not heard from Education
Incentives and Counseling Branch by his eighth month of active duty,
please forward the required documents listed in the response to Question
#1 to:
Education
Incentives and Counseling Branch.
How much will be repaid on my student loans?
FAQ
Payment of 33-1/3 percent or $1,500, whichever is greater on the
remaining original unpaid principal balance, after each completed year of
active duty (up to $55,000 for those enlisting April 28, 1992 to February
3, 1997 or up to $65,000 as February 4, 1997).
How do I go about getting a deferment or
forbearance? FAQ
Deferment or forbearance on a loan is the sole responsibility of
the borrower. Paperwork for deferment or forbearance must be obtained from
the lender and the soldier must ensure the paperwork is taken care of and
kept up-to-date. The U.S. Army does not assume an individual's loan; the
individual remains responsible for payment and the status of the loan.
Public Law 99-145, Section 671(a)(1), precludes the authorization of
payments toward interest or the reimbursement of payments made.
Is the Loan Repayment Program taxable?
FAQ
Yes, payments made under the LRP are
considered taxable income in the year they are paid. A separate statement
of amount (W-2) paid should be provided to an individual at tax year-end
by Defense Finance and Accounting Services (DFAS) - Indianapolis Center.
If the W-2 has not been received for the LRP, please contact DFAS at CMCL:
(317) 510-2800 or DSN: 699-2800.
Are defaulted loans
eligible for payment under the Loan Repayment Program?
FAQ
In accordance with U.S. Army Recruiting Command Regulation 621-1, the Army
will not pay loans that are in default. Army Regulation 621-202, Chapter
3, Section 3-5, Army Educational Incentive and Entitlements, also
stipulates the Army will not repay loans or portions of loans that are in
default.
Why hasn't my loan been
paid? I contracted for
the Loan Repayment Program and the Montgomery GI Bill? FAQ
Public Law 98-525, Chapter 30 precludes
accrual of benefits under the LRP and MGIB for the same period of service.
You were required to complete the disenrollment section of the DD Form
2366 to officially disenroll from the MGIB within three working days upon
entry on active duty. There are no provisions to disenroll from the MGIB
at a later date.
Where are my loans? FAQ
The Education Incentives and Counseling
Branch does not know where an individual's loans are. This information is
obtained from the DOD Educational Loan Repayment Program Annual
Application, DD Form 2475, which is sent to the soldier after he is
determined eligible for the LRP. The soldier completes his section of DD
Form 2475 then forwards it to the loan holder. The loan holder is asked to
complete his section of DD Form 2475 and forward it to Education
Incentives and Counseling Branch. It is the responsibility of the LRP
participant to ensure we receive the completed DD Form 2475 on all
eligible loans.
Note: The Loan Repayment Program participants are also responsible for
notifying the Education
Incentives and Counseling Branch if their loan holder should change.
Skip Links will take you to Basic Skills or
click to return to Financial Aid
|