Loan Repayment Program (LRP): What You Need to Know

Loan Repayment Program: The Basics

The Student Loan Repayment Program (LRP) is a military education benefit offered to enlisted members of the U.S. Armed Forces. The benefit helps servicemembers reduce student debt incurred while taking college classes before joining the military. You must enroll in the Loan Repayment Program when you enlist in the Armed Forces. To be eligible, you must enlist for at least three years of active duty or six years in the Army Reserve.

Loan Repayment Program: Does Each Service Branch Have One?

The U.S. Army, U.S. Navy, and U.S. Air Force each have versions of the Loan Repayment Program. The U.S. Army and the U.S. Navy each have a maximum loan repayment of $65,000. The U.S. Air Force repays loans up to $10,000.

Loan Repayment Program: Eligibility Requirements

Although eligibility varies slightly by branch, here's how you can qualify for the LRP:

1. Decline Montgomery GI Bill enrollment in writing
2. Have DA Form 3286-66 included in your contract when you enlist
3. Have a score of 50 or higher on the Armed Services Vocational Aptitude Battery (ASVAB)
4. Enlist on a critical military occupational specialty (MOS)
5. Have a guaranteed loan under the Higher Education Act of 1965 prior to your enlistment

Loan Repayment Program: How Does It Work?

You'll receive this military education benefit after your first year of service. The service branch you are enlisted in will repay up to $1,500 of your loans per year. Payments will be made after each year of completed military service until the loan is repaid or the maximum amount has been reached. Payments are made directly to the lender.

Loan Repayment Program: Which Types of Loans Qualify?

The Loan Repayment Program covers government loans which are not in default at the time of enlistment. To be eligible, your student loans must have been incurred prior to your enlisting in the armed forces and must have been incurred by you. This benefit only covers the unpaid principle balance at the time of enlistment.

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