Navy Enlistees Enrolling in the Student Loan Repayment Program

Will Navy SLRP Come Back in 2016?

Unfortunately, all signs are currently pointing to no.

As mentioned in the update below, the Navy’s Student Loan Repayment Program remains unfunded, with no plans of returning.

I had hoped the DoD would turn things around before the New Year hit, and I hate to be the bearer of bad news, but until I hear otherwise, it looks like the Navy’s SLRP program is on a permanent pause.

Navy SLRP Officially Ends

I’ve got some terrible news for everyone looking to take advantage of the Navy Student Loan Repayment Program – as of July 1st, 2015, this program has been effectively ended, as no ratings or programs are eligible any longer for the benefit.

Not only that, but the Navy has also dropped the number of ratings and programs eligible for enlistment bonuses, decreasing them from 13 to just 7.

While this is definitely bad news for those of you looking to gain some financial benefits to your enlistment in the Navy, I do think there’s a silver lining here – we’re finally winding down the war-footing we’ve been on since the 9/11 attacks.

I’ll continue to watch this situation closely, and if anything changes, I will update this page’s text to reflect that. For now, however, sorry to be the bearer of bad news, and please consider checking out other pages of my site to look into the many other financial assistance programs currently on offer.

If you’re dead-set on military service, then please visit my page about Military Student Loan Forgiveness Programs, but if you’re just looking for any way to reduce your student loan debt, check out my page about general Student Loan Forgiveness – where you’ll find a list of 75+ student loan forgiveness programs.

Navy CLRP Benefits

[Editor’s Note: The text below no longer applies. As of July 1st, 2015, the Navy has withdrawn their support of Navy SLRP. There’s no telling when, or even if, this program will come back, but I’m watching developments closely and will update this page as soon as I have additional details.]

In 2015, the Navy College Loan Repayment Program continues to offer up to $65,000 in student loan repayment benefits for eligible Navy personnel, but these funds are being restricted to an even smaller pool of eligible candidates than ever before.

If you’re buried in student loan debt, then the Navy loan repayment program provides a fantastic opportunity to reduce your financial liabilities, but you’ll need to be extremely cautious about joining up just to get your loans discharged, because eligibility conditions just keep getting more difficult to satisfy.

The Navy CLPR Program is one of the best Military College Loan Repayment Programs available, but it’s only available to new enlistees. Loan repayment benefits are offered to enlistees joining the regular service as Active Duty personnel, or to those joining the Navy Reserves, but only if they’re first-time enlistees with no prior military service.

Navy CLRP benefits are first made available once enlistees have completed their first year of active duty service, finished basic training, and completed all of their required on-job training for their specific Navy occupation.

Eligibility Criteria

Qualifying for the Navy student loan repayment program isn’t all that difficult, but you do have to satisfy specific eligibility criteria in order to begin receiving loan repayment program benefits. In 2014, if you want to receive Navy student loan repayment benefits, you must:

  • Request to participate in the Navy CLRP program while enlisting in the Navy for the first time (Navy reserves enlistees can have prior service and still qualify)
  • Make sure that your participation in the CLRP program is spelled out in writing on your enlistment contract
  • Decline to enroll in the Post 9/11 GI Bill benefits program (though, a section below explains how you can qualify for both benefits programs)
  • If joining Navy active duty, you must enlist for a minimum period of at least four years
  • If joining the Navy reserves, you must enlist for a minimum period of at least six years
  • Have student loan debt that meets the eligibility guidelines featured below
  • You must have a rating (mission or job) that’s been deemed eligible for the Student Loan Repayment Program

NOTE: The third bullet point above is extremely important. If you ever plan on returning to college, then you will need to pay close attention to this next little bit.

To qualify for both the Navy student loan repayment program and the Post 9/11 GI Bill benefits program, you will need to enlist for an extended service contract.

If you do not enlist for at least 6 years, your participation in the Navy CLRP program will require that you give up eligibility to receive Post 9/11 GI Bill benefits.

Since those benefits stand to provide you with tens of thousands of dollars, you will need to give this some serious thought before determining the best course of action.

Loan Repayments

If you meet all of the eligibility criteria outlined above, you can begin receiving college loan repayment benefits by:

  • Completing your first year in the Navy active duty, or Navy reserves
  • Finished basic training
  • Completed all of the required on-job training for your specific Military Occupational Specialty (your job in the Navy)

Qualifying Loans

For 2015, only Title IV student loans are eligible for participation in the Navy student loan repayment program. These loans include:

  • Stafford Student Loans (GSLs)
  • Perkins Loans
  • Federally Insured Student Loans (FISLs)
  • Supplemental Loans for Students (SLSs)
  • Parents Loans for Undergraduate Students (PLUS loans)
  • Consolidated Loan Program Loans

Credit-based loans and loans from private banks will not be eligible for participation in the Navy CLRP program, which is a major drawback considering that a huge contingency of those attending college are financing their education with private loans.

Some examples of loans that are not eligible for the Navy college loan repayment program include:Signature Loans, Private Loans, Alternative Loans and anything else not listed above.

If you aren’t sure whether or not your loan qualifies for participation, please contact your lender and ask them if you have a Title IV loan. If you do not, then you cannot receive these benefits, even if you satisfy all of the other eligibility requirements.

If your student loan debt does not qualify for participating in this program, then make sure you explain that to your Navy recruiter to see if he can offer you participation in any other Student Loan Debt Forgiveness Programs. There may or may not be other options available to you.

2015 Navy LRP Rates

Navy college loan repayment schedules are different for those serving in Navy active positions and those serving in the Navy reserves. Here’s the breakdown of how much money you’ll receive based on your service status:

Navy CLRP Rates for Active Duty Sailors

Active duty sailors will have 33.3% of the outstanding principal balance, or $1,500 (whichever is greater) of their loans repaid for each year of service that they complete.

Navy CLRP Rates for Navy Reserves

Navy reserves sailors will have 15% of the outstanding principal balance, or $1,500 (whichever is greater) of their loans repaid for each year of service that they complete.

Which Ratings are Eligible?

As of February 1st, 2014, Navy SLRP was restricted and is now only eligible to the following ratings:

  • Musician
  • Hospital Corpsman (HM-SG)
  • Cryptologic Technician – Interpretive (CTI – Advanced Technical Field (ATF))
  • Cryptologic Technician (Maintenance)
  • Cryptologic Technician (Networks)
  • Cryptologic Technician (Technical)
  • Information Systems Technician
  • Special Warfare Operator (SEAL)

Until further notice, all other ratings will no longer be eligible for Navy SLRP.

Will My Loan’s Interest be Repaid Too?

The short answer is a flat-out “no”. Interest that accrues on your student loan debt is not eligible to be repaid as part of the Navy CLRP program. Even interest that has been re-capitalized into principal isn’t eligible for receiving repayment.

This is a major flaw to the program, and one that has caused a torrent of complaints across the Internet, but it’s not one that is likely to be fixed at any point in the near future.

Does Navy CLRP Offer Deferment or Forbearance Benefits?

While the program itself doesn’t offer any loan deferment or forbearance benefits, many lenders do offer deferment and forbearance benefits for for borrowers who are deployed on active duty service, and some offer the same benefits for a variety of other reasons.

To find out if you qualify for a loan deferment or loan forbearance program, you will need to contact your lender and make an official request to receive deferment or forbearance.

Do Navy CLRP Benefits Count as Taxable Income?

Unfortunately, yes, your Navy loan repayment program benefits do count as taxable income, and they will need to be included on your annual tax returns.

While you will receive a separate W-2 to document your CLRP benefits on your annual tax returns, the Government will take care of paying the tax liabilities you generate from receiving CLRP by withholding 28% of what they would have paid your lender each year and sending that money instead to the IRS.

Navy CLRP Benefits & The Post 9/11 GI Bill

As we mentioned above, you will not be able to participate in both the Navy Student Loan Repayment Program and the Post 9/11 GI Bill by completing a single enlistment period of 4 years.

To qualify for both Navy CLRP benefits and 100% of your Post 9/11 GI Bill Benefits, you must serve a full six years either through extension or reenlistment of your service contract. If you end up serving less than the full six years, then your VA benefits will end up being prorated based on the total amount of active duty service that you completed.

To get additional information on this part of the program, contact your VA Representative at PERS 314 by calling (901) 874-4258.

As a Participant in CLRP, What are My Responsibilities?

The Navy’s official student loan repayment program document (see it here) states that even though they are making loan repayments for you, that you need to keep in mind that they will never actually assume responsibility for your loans.

As such, even once you’ve been enrolled in the program and have begun to receive loan repayment benefits, you need to make sure that your loan remains in good standing, since the Navy will not pay for any loans that are in default.

How do I Officially Apply to the Program?

Once you’ve satisfied all the eligibility criteria, you will need to complete the following six documents and get them scanned into a single .pdf document delivered via email to

Your MEPS classifier or Navy Recruiter will be responsible for submitting these documents the LRP Manager, but you will have to do quite a bit of work preparing the documents for them first.

Six documents you will need to apply:

  1. A copy of your completed Loan Repayment Program Worksheet (Revised August 2011) signed by yourself and your MEPS classifier
  2. A copy of your completed Enlistment Guarantee (NAVCRUIT 1133/52 Revised April 2012) with Loan Repayment Program listed as a guarantee and signed by both yourself and your MEPS classifier
  3. A copy of your completed Statement of Understanding (SOU) (NAVCRUIT 1133/75 Revised April 2012) signed by both yourself and your Navy Recruiter
  4. A copy of your completed PRIDE system LRP text file signed by both yourself and the your MEPS classifier
  5. A copy of your completed DD Form 2475 (Revised January 2012), filled out by the lender for each student loan you have
  6. A copy of your lender’s promissory note for each eligible student loan you have

The only part of this process that really requires additional explanation is completing DD Form 2475. To get this one ready for submission, you’ll need to complete each of the following 4 parts:

  • DD Form 2475 – Part 1 – You (the Sailor) are responsible for filling this part out and having it signed by someone in your Chain of Command
  • DD Form 2475 – Part 2 – Self Explanatory
  • DD Form 2475 – Part 3 – You are responsible for filling this part out, and calling your lender for assistance if you have any questions about how to complete it
  • DD Form 2475 – Part 4 – Your lender needs to fill this part out. They will then return the form to the address you have listed in Part 1 Block 1(a)

Make sure that your lender emails the completed DD 2475 form to and requests email confirmation of its receipt.

The Navy specifically states that phone confirmations are not effective because they want to have everything in writing in case something goes awry.

To begin issuing repayments on your behalf, NRC must be able to match your Enlistment Guarantees (Annex to DD 4/NAVCRUIT 1133-52), the Statement of Understanding (NAVCRUIT 1133-75), the Promissory Notes with your name as the borrower, and the completed DD 2475.

How Long do I Have to Submit My Application?

You need to submit your Navy LRP application paperwork within 60 days of entering into the Delayed Entry Program (DEP).

You should find out whether or not your submitted forms have been approved or rejected within 3 working days of their submission. If your forms are rejected, you will need to submit another complete and corrected package of forms.

We suggest submitting your completed application at least 10 or so working days before your deadline, just in case there are problems with your paperwork.

If you submitted your completed paperwork more than three working days ago and haven’t received a rejection or approval notice in the PRIDE system yet, then all (901) 874-9283 for an update.

If you have been entered in DEP for more than 60 days, or are within 70 days of ship date, you will need to request that an Exception to Policy (ETP) (NAVCRUIT 1133/103 Rev. February, 2010) form is completed and signed by the Commanding Officer of your Recruiting Station.

This form will need to be included with the other forms you’re required to submit to complete the applications process.

How Can I Find Out Who My Lender Is?

If you don’t know who holds your student loan, then you’ll need to request assistance from the U.S. Department of Education so that you can obtain copies of your promissory notes (official loan paperwork).

To speak with them, please call 1-800-433-3243 or visit their website at

What Happens if I Fail to Satisfy My Enlistment Obligation?

Should you fail to satisfy your enlistment obligation, you will be forced to forfeit eligibility for receiving Navy CLRP benefits.

There are only a few cases in which you can separate from the service without having completed your initial service contract and still be eligible to receive loan repayment benefits; they include separating early, but having already completed an entire year on active duty, and separating for one of the following reasons:

  • Physical Disability
  • Hardship
  • Convenience of the Government Discharges (like enrolling in Officer’s Candidate’s School or a Service Academy)

If you do end up separating early, you will need to provide NRC with a copy of your discharge paperwork (DD Form 214) so that they can review it and determine whether or not you will be eligible to receive continued prorated repayment benefits.

Will I Lose My Benefits For Accepting an Officer Program?

Unfortunately, you will have to sacrifice future Navy CLRP benefits if you accept an Officer program. The way this works is that you can only receive benefits based on the number of years you’ve completed for your service agreement.

If you completed two years, but then enrolled in an Officer program during your third year of duty, then you would only receive two years worth of benefits.

Fortunately, you will not have to repay any of the benefits you had already received if you are promoted to Officer status.

Will I Have to Repay Benefits I Received For Being Discharged?

Fortunately, you will not have to repay any of the benefits you had already received even if you separate from Active Duty before completing your service obligation.

Your maximum student loan repayment benefit will be calculated based on the last day of active duty stated on your DD 214, and you might be eligible to receive pro-rated benefits based on the number of days you completed during your last year of eligible service.

What Should I Do if My Lender Doesn’t Receive Payments?

If something goes wrong in the process and your lender hasn’t received any CLRP payments after 75 days, then you need to send the DFAS Account Department a signed fax (send it to them at (216) 522-5898) stating that your lender did not receive the check that DFAS sent on whatever date it was distributed. Include the following information in your fax to DFAS:

  1. Amount Sent to Lender (Calculated by taking the Payment Amount and subtracting Federal & State Taxes)
  2. Check Number
  3. Voucher Number

To get this information, you will need to contact an official LRP Program Manager. Call them at (901) 874-9283 for the details.

How Can I Drop Out of the CLRP Program?

Sailors That Have Not Yet Attended Boot Camp:

If, for any reason, you decide to drop out of NAVY CLRP before you have gone to boot camp, you will need to formally request disenrollment from your MEPS qualifier using a disenrollment form.

Sailors That Are Already On Active Duty:

If you’re already serving on active duty and have CLRP as a guarantee in your service contract, you will need to disenroll after receiving your final loan repayment, when you leave the Navy, if you become a commissioned officer, or if you want to switch to the Post 9/11 GI Bill before completing your first duty assignment. To do this, contact NRC at (901) 874-9283 or via email at

Where Can I Ask Questions About CLRP Benefits?

If we haven’t already answered all of your questions, please send any further inquiries to the Navy Recruiting Command. Visit their FAQ page here, and if your question is not listed there, then try contacting them via this email address: or by calling (901) 874-9283.

Other Military Benefits Programs

For questions about other military benefits packages, make sure to view our Guide to Education Benefits for Military Personnel, where you’ll find out how to save tens of thousands of dollars on future education costs.

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Tim's experience battling crushing student loan debt led him to create the website Forget Student Loan Debt, where he offers advice on dealing with excessive student loans and advocates a cautious approach to funding education costs via borrowed money.