Military Student Loan Repayment Programs
Serving the nation, whether in uniform or as a civilian employee, comes with a commitment to public duty.
The federal government offers student loan repayment programs as an incentive for joining the military. These programs are designed to ease the debt for qualifying servicemembers and civilian workers. Some are offered to those who qualify with military service, and others are offered for specific career fields within a branch of the Armed Forces.
Still others are offered to civilian employees of agencies like the Department of Veterans Affairs.
Military Student Loan Repayment Programs
For those entering the armed forces, the Student Loan Repayment Program (SLRP) is one perk offered to some enlistees. The Army official site for that version of the option states:
“The 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.”
There’s just one catch. Only specified Military Occupational Specialties (MOSs) qualify, and that list is always subject to change.
How does it work? An SLRP for new recruits acts as an enlistment bonus. In exchange for a service commitment, a portion of a service member’s qualifying federal student loans is paid off.
Eligibility is strict and varies by branch, but it generally requires a high school diploma, a qualifying score on the Armed Services Vocational Aptitude Battery (ASVAB), and enlistment in a high-need military career field. This benefit has been typically offered to non-prior service enlistees. Funds received through SLRP may be considered taxable income.
Medical Professionals
For medical professionals, the military offers larger financial incentives. The Health Professions Loan Repayment Program (HPLRP) provides assistance to doctors, dentists, psychologists, and other healthcare providers who agree to serve.
This program can provide a substantial amount toward student loans in exchange for a military service commitment. Applicants must be qualified to be a commissioned officer “in one of the health professions and sign a written agreement to serve on active duty for a prescribed time period.” You must also be “fully qualified in a health profession that the Secretary of the Navy has determined to be necessary to meet identified skill shortages.”
Student Loan Repayment for Chaplains
The U.S. Army’s Chaplain Loan Repayment Program (CLRP) provides funds (up to $80,000 in past efforts) toward a candidate’s qualifying educational loans.
To be eligible for this incentive, candidates must meet all the requirements for commissioning as military officers and chaplains. This includes obtaining a formal ecclesiastical endorsement from their faith group, holding a graduate-level degree in theological studies, and committing to a term of service.
Other military branches have offered similar options. Yes, the other branches offer similar programs, though the structure and availability can vary.
The U.S. Navy recruits chaplains to serve sailors and Marines in the U.S. Marine Corps.2 Their primary path for students is the Chaplain Candidate Program Officer (CCPO). This program allows seminary and theological students to join the Navy Reserve as candidates while they finish their graduate studies.
While candidates, students receive pay for training. Upon completing a degree and commissioning as a Navy Chaplain, students may be eligible for the Student Loan Repayment Program, which has offered up to $80,000 to pay down qualifying student loans for theological education.
The Air Force also offers incentives to attract qualified chaplains, though they may be structured as part of broader accession bonuses rather than a standalone, consistently named program like the Army’s. While not always advertised as a standing “Loan Repayment Program,” the Air Force may offer accession bonuses to chaplain candidates to meet recruiting goals.
These bonuses, which could be used for student loans, are subject to change based on the service’s needs. Aspiring chaplains should work directly with an Air Force recruiter to determine the most current financial incentives available.
Options for the Guard and Reserve
Members of the National Guard and Reserve also have access to a Student Loan Repayment Program. Similar to the active-duty version, this SLRP is an incentive for enlisting or re-enlisting for a specific term, typically six years, often in a needed skill position.
This program has in the past offered up to $50,000 toward qualifying federal student loans. Payments are usually made in annual installments directly to the loan servicer after each year of satisfactory service. Like its active-duty counterpart, this benefit is considered taxable income.
One important consideration for Guard and Reserve members is how this program works with other education benefits. Will you be denied other benefits for using Student Loan Repayment?
According to one Army Reserve document: “The ARNG’s Student Loan Repayment Program (SLRP), Health Professional Loan Repayment Program (HPLRP), and Chaplain Loan Repayment Program (CLRP) are education incentives and have no impact on receiving funds from the FTA program…”
In the case where an applicant “is eligible for both FTA and a Pell Grant, it is recommended that FTA be applied first to allow maximum use of Pell Grant funds. Soldiers receiving an ROTC scholarship under USC Sections 2107 or 2107a are not eligible to receive FTA” according to the Army.
Federal Service Loan Repayment Options
For civilian employees of the federal government, two programs provide avenues for student loan relief.
Public Service Loan Forgiveness (PSLF) is available to anyone working full-time for a qualifying public service employer, which includes federal, state, local, and tribal governments, as well as non-profit organizations. Under PSLF, the remaining balance on a borrower’s Direct Loans is forgiven after they have made 120 qualifying monthly payments. Depending on the rules in the current tax year, the forgiven loan amount may not be considered taxable income by the federal government.
The Federal Student Loan Repayment Program (FSLRP) is a different tool used by federal agencies to recruit and retain highly qualified employees. An agency can pay up to $10,000 per year directly to an employee’s student loan lender, with a total lifetime maximum of $60,000 per employee. In return, the employee must sign a service agreement to remain with the agency for at least three years.
The VA Student Loan Repayment Program
The VA Student Loan Repayment Program (SLRP) helps recruit and retain employees in hard-to-fill clinical positions. The VA may authorize loan repayments (of up to $40,000 annually in years past) for highly qualified healthcare professionals who commit to a service period. As with other FSLRPs, this is a discretionary benefit tied to a service agreement and may be considered taxable income.
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
