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. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.
Enlisting Active duty Soldiers are eligible for the Loan Repayment Program if they meet the following conditions:
Soldier must agree to a term of service of three years or more
Soldier must decline enrollment in the Montgomery GI Bill in writing, using DD Form 2366
Soldier must have Loan Repayment Program guaranteed in writing in the enlistment contract
Soldier must be a non-prior service accession
Soldier must have a high school diploma and a score of 50 or higher on the Armed Forces Qualification Test (AFQT)
Soldier must enlist in one of the critical MOSs that qualifies for the program (Local Army recruiters have the current list, which changes quarterly)
Loans must be made, insured, or guaranteed under the Higher Education Act, Title IV, Part B, D, or E or any loan incurred for educational purposes made by a lender that is (a) an agency or instrumentality of a State; (b) a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State; (c) from a pension fund or a non-profit private entity (subject to case-by-case review) and prior to entry on active duty.
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 
three years total. Loans must not be in default before entering active duty, and during the repayment process.
Loans that qualify for repayment:
Any loan made, insured, or guaranteed under the Federal Family Education Loan Program, part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.)
Any loan made under the William D. Ford Federal Direct Loan Program, part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.)
Any loan made under Federal Perkins Loans part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.); or
Any loan incurred for educational purposes made by a lender that is -
an agency or instrumentality of a State
a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State
from a pension fund or a non-profit private entity (subject to case-by-case review)
This includes:
There are many loans that do not qualify. Individuals should ensure loans are covered under the Higher Education Act, Title IV, Part B, D, and E or any loan incurred for educational purposes made by a lender for the Soldier prior to signing the enlistment agreement. Listed below are several loans that are not covered under this Act:
Private Loans
State Funded Loans
Institution Loans
Equity Loans
Consolidated Loans for someone else (wife, sister, brother, etc.)
Parent Loans incurred for someone other than the LRP participant
Payments are made directly to the lender. The first payment is not made until after the member has completed one year of service (assuming all initial entry training has been completed). The Army will only repay the remaining original unpaid principal, less taxes on qualifying loan(s). Interest (even if it has been re-capitalized into principal) will not be repaid. Additionally, payments made under the Loan Repayment Program are considered taxable income in the year(s) that payments are made. Furthermore, there is no reimbursem*nt available for any loan payments already paid. The Army will not pay on loans that are in default.
In order to maintain eligibility for the Loan Repayment Program, Soldiers must remain qualified in their original MOS throughout their initial term of service. If an LRP participant does not fulfill their obligated term of service by separating from the service early, then that Soldier will lose their eligibility for LRP. There are some exceptions to this early separation rule. For example, individuals who separate early after completing at least one year on active duty, may be eligible for prorated LRP payments if the reason for separation was physical disability, hardship, or certain convenience of the government discharges.
For more information, please visit the Loan Repayment Program web page maintained by the Human Resources Command:
https://www.hrc.army.mil/TAGD/Loan%20Repayment%20Program
For Reserve-specific information:
Army Regulation 621-202 - Army Educational Incentives and Entitlements
https://armypubs.army.mil/epubs/DR_pubs/DR_a/pdf/web/ARN5910_AR621-202_Web_FINAL.pdf
FAQs
If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability. Also, the government can collect on your loans by taking funds from your wages, tax refunds, and other government payments.
What is the success rate of the NIH loan repayment program? ›
Figure 1: Loan Repayment Program Overview
Success rate: 51%. Mean award: $55,026. Mean age of awardees: 37 years.
How much does NIH LRP pay? ›
The NIH will repay 25 percent of the eligible education debt, up to a maximum of $50,000 per year.
Will joining the military forgive student loans? ›
Service to our country qualifies borrowers for one of the most popular student loan forgiveness programs — Public Service Loan Forgiveness. This program forgives all federal student loan debt after the borrower makes 120 qualifying payments while working full-time with the military or another qualifying non-profit.
How many people never pay back their student loans? ›
About 5% of student debt was at least 90 days delinquent or in default in the fourth quarter of 2021.
Is it a crime to not pay student loans? ›
No, you can't go to jail for not paying your student loans. So if that was a fear you had, take a deep breath—no one is coming to arrest you if you miss a payment. But like we mentioned, you can be sued over defaulted student loans. This would be a civil case—not a criminal one.
What are the NIH loan repayment programs LRPs? ›
The NIH Loan Repayment Programs (LRPs) are a set of programs established by Congress and designed to recruit and retain highly qualified health professionals into biomedical or biobehavioral research careers.
How hard is it to get an NIH grant? ›
NIH grants are extremely competitive, so you're more likely to find success if you pursue other organizations first. Importantly, securing smaller grants may give you the funding you need to conduct preliminary research and gather the data you'll need to ultimately convince the NIH to support your work.
Has the Biden administration forgiven student loan debt? ›
President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000.
Is NIH LRP prestigious? ›
Not only did it help relieve the financial pressure of my student debt, but the LRP itself is also considered to be a prestigious NIH grant among researchers.
Be a U.S. citizen, U.S. National, or permanent resident. degree (except for the Contraception & Infertility Research LRP). Have qualifying educational debt equal to or in excess of 20 percent of their institutional base salary. nonprofit institution, or a U.S. government agency (federal, state, or local).
How does LRP NIH work? ›
The NIH Loan Repayment Programs (LRPs) will repay up to $50,000 annually of a researcher's qualified educational debt (depending on debt level) in return for a commitment to engage in NIH mission- relevant research.
Can 90% VA disability get student loan forgiveness? ›
The short answer is yes: You can qualify for 90 percent disabled veteran student loan forgiveness with a 90% VA rating; however, it must be based on Total Disability Individual Unemployability (TDIU). If you have a 90% scheduler VA rating, you do not qualify for the disabled veteran student loan forgiveness program.
What military branch will pay off student loans? ›
Many people are not aware that the Army, Navy, Air Force, and National Guard can offer you special programs for repaying student debt. If you have Federal Direct Loans, you may be eligible to have these loans totally forgiven by joining the military.
Can you use your GI bill to pay off student loans? ›
The GI Bill is designed to help military service members pay for college, graduate school, and training programs. However, GI bill benefits cannot be used to repay student loans. If you aren't eligible, you may need to reenlist to qualify for future GI bill benefits.
What happens if no one pays back their student loans? ›
Eventually, your student loans will be put into default and you may lose federal loan benefits, have your wages garnished, get barred from federal student aid among other consequences. Your loan holder may sue you, as well. If you ignore the court date or the court's orders — that could land you in jail.
What happens if you are not paying private student loans? ›
If you're unable to make your private student loan payments, the lender can report your default to consumer reporting agencies, which could harm your credit. They may take different actions to collect the debt.
What happens if you don't spend all of your student loans? ›
The school determines the final tuition amount due, taking grants and scholarships into account. If your student loan covers more than that amount, you will receive a refund from your school. Use the excess funds only for education-related expenses.
What happens if you never earn enough to repay student loans? ›
The threshold you're on depends on which repayment plan you're on. If your income changes, the amount you repay will change too. But don't worry – this happens automatically. If you stop working, or start to earn below the repayment threshold, your repayments will stop until you earn over the threshold.
three years total. Loans must not be in default before entering active duty, and during the repayment process.