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Department of Veterans Affairs Student Loan Repayment Program

Joe Wallace

The Department of Veterans Affairs (VA) Student Loan Repayment Program (SLRP) is an incentive for recruiting and retaining a highly qualified workforce. This is not a broad program for all veterans, but a targeted incentive for VA employees in positions that are difficult to fill. If you are considering employment in a Department of Veterans Affairs position, it pays to look into the SLRP options you may have open to you, where applicable.

Department of Veterans Affairs Student Loan Repayment Program

The SLRP is designed as both a recruitment and a retention tool. The VA has the authority to offer this program to candidates or current employees in occupations with a shortage of qualified personnel, which is particularly common in medical and health-related fields. In exchange for student loan repayment assistance, the employee agrees to a period of service with the VA. This service obligation ensures the department receives a return on its investment by securing the employee’s expertise for a set duration.

The program is discretionary, meaning the decision to offer SLRP rests with the individual VA facility based on its specific hiring needs and budget.

Eligibility and Qualifying Positions

Eligibility rules require that the applicant be a permanent VA employee serving in a healthcare position designated as difficult to recruit or retain. The specific occupations that qualify for SLRP vary by location and change over time based on the needs of the VA health care system.

Commonly, these positions fall under the Title 38 and Hybrid Title 38 appointment authorities. Eligible roles often include physicians, registered nurses, psychologists, pharmacists, physical therapists, social workers, and physician assistants.

Holding one of these job titles does not guarantee eligibility; the specific position must be officially approved for the SLRP incentive at the time of hiring or as a retention measure.

Financial Benefits and Service Obligation

The financial assistance provided through the SLRP can be substantial. The VA may repay up to $40,000 per year toward an employee’s qualifying student loan debt, with past efforts including a lifetime maximum of $100,000 per employee. (See the VA official site for the most current cap and other details.)

These benefits have generally been considered taxable income in the past, and the VA is required to withhold taxes from the payment. Check the current year’s tax laws for the most up-to-date information on tax requirements in this area.

To be accepted into the program, the employee must sign a service agreement. This contract legally obligates the individual to remain employed with the VA for a specified period, which has typically been three years in the past.

The employee must maintain an acceptable level of performance throughout the service period. Failure to complete the service obligation has serious consequences. If an employee leaves the VA or is terminated before the agreement is fulfilled, they may be required to repay the entire amount of the benefits they have received.

Qualifying Loans

To be eligible for repayment, the loan must be a qualifying type, such as Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, Federal Direct Consolidation Loans, and Federal Perkins Loans.

The loans must have been used for tuition and other reasonable educational and living expenses associated with the degree that qualifies the employee for their VA position.

Private student loans are typically not eligible under this VA program.

How to Apply and Get Started

The process for securing the SLRP incentive involves several key steps. The point of contact for this program is typically the Human Resources (HR) department at the specific VA facility offering the position.

For Prospective Employees

1. When searching for jobs on USAJOBS.gov, look at the “Benefits” section of the announcement. If the VA intends to offer SLRP as an incentive, it will usually be mentioned in the relevant documentation.
2. You should express your interest in the program during the interview process. This confirms your interest and allows the hiring manager to consider it as part of a potential job offer.
3. The SLRP is a discretionary incentive. If you receive a job offer, the inclusion of the SLRP can be part of the negotiation and will be formalized in your official offer letter from HR.

For Current Employees

1. The SLRP is primarily used for current employees as a retention tool, typically initiated by management when there is a risk of losing a valuable employee in a critical, hard-to-fill position.
2. If you are in a qualifying role and believe you might be eligible for a retention incentive, the first step is a conversation with your direct supervisor.

Application and Approval Process

1. Once the SLRP is offered, the VA Human Resources department will provide you with an application packet containing the necessary forms and the service agreement.
2. You are responsible for obtaining official documentation from your student loan servicer(s). This paperwork must clearly state your name, account number, outstanding balance, and loan type.
3. Read the service agreement carefully. This legally binding document outlines your service obligation, the repayment terms, and the consequences of not completing the service period.
4. Submit your completed application, loan documentation, and signed service agreement to the designated HR specialist for review and final approval.
5. Once approved, the VA will coordinate directly with your loan servicer to begin making payments. The program requires annual recertification to continue receiving payments.

Learn more about other military student loan repayment options.