Army SLRP Benefits Remain Outstanding for 2018
In 2018, Army SLRP benefits remain the best of any Service Branch.
In fact, out of all the options currently available for receiving Military Student Loan Forgiveness, the Army’s Student Loan Repayment Program is not just the best, but by far the best possible option for anyone looking to reduce their student loans.
Why? Because compared to the other service branch’s Military College Loan Repayment Programs, the Army’s is the easiest to qualify for, and it offers the biggest benefit amount; up to $65,000 in total student loan forgiveness.
And while these benefits could disappear at the drop of a hat, especially depending on what President Trump’s Plan for Student Loan Debt ends up looking like, the benefit remains a powerful incentive becoming a Soldier, and it’s definitely worth looking into if you’re thinking about joining the Army.
One word of caution before we proceed: make sure to be extremely cautious of any offers you receive via email or snailmail promising you some form of debt relief. There are all sorts of Student Loan Forgiveness Scams floating around these days, and I’ve received many comments that the latest scammers are primarily focusing on military personnel.
What is Army SLRP?
The Army Student Loan Repayment Program is typically referred to as Army LRP or SLRP, but is officially known as the “Army College Loan Repayment Program”.
Army LRP was created to offer a special incentive to highly qualified individuals who enlist in one of the Army’s critical military occupational specialties (MOS). That means that these benefits aren’t available to everyone, but only to certain people who agree to serve in specific positions that the Army really needs help with.
In 2018, the Army SLRP benefits program remains fully-funded, and continues to offer the opportunity to receive annual payments to help reduce your student loan debt, with a lifetime maximum forgiveness cap set at $65,000 in total benefits received.
One thing to keep in mind about the Army’s SLRP program is that it’s designed for people who have already racked up some student loans. If you don’t already have student loan debt, then you’ll want to look at my page on the Army Tuition Assistance Program instead.
But Before I Delve Into Details…
Let me give you a quick word of advice: if you’re already buried in student loan debt and are thinking about joining the military only for the debt relief benefits, then you’re about to make a huge mistake.
First, while that $65,000 in student loan forgiveness is an excellent deal, if all you want from the Army is some financial assistance, then you will end up a miserable soldier.
Second, there may be a better way to get rid of your loans, especially if you have Federally-funded student loan debt. Before you enlist, please spend 5 minutes of your time talking to my favorite student loans assistance company: the Student Loan Relief Helpline.
These guys are staffed by true experts who can evaluate your specific financial situation, look at your loans, and determine the best way to get you out of debt quickly. Maybe you’ll qualify for one of the many Federal Student Loan Forgiveness Programs, or maybe you’ll be able to get your Loans Discharged by Filing for Bankruptcy, or writing a Borrowers Defense Against Repayment Letter.
There are tons of options for getting rid of your loans without paying for them, and the Helpline will show you the best, cheapest way to get that done. Your first call to the Helpline is free, so you’ve got nothing to lose!
Call the Student Loan Relief Helpline now at: 1-888-906-3065.
Army SLRP Eligibility Criteria
- To qualify for Army student loan repayment benefits, you must enlist for Active Duty service in the Army and:
- Request to participate in the LRP program during your enlistment process
- Get your participation annotated in writing on your enlistment contract
- Decline participation in the Post 9/11 GI Bill in writing, using DD Form 2366 (see section below for details)
- Hold a high school diploma (GED equivalents will not suffice) at the time of your enlistment
- Score a 50 or higher on the Armed Forces Qualification Test (your main score from the ASVAB you took before enlisting)
- Enlist in a Military Occupational Specialty (MOS) deemed eligible for participation in the CLRP at the time of your enlistment (check with your recruiter to make sure that your MOS applies at the time you join up, as eligible programs change by the day)
- Be on a non-prior service accession (unless you’re using enlistment in the Reserves to qualify for LRP benefits)
- Have a student loan that qualifies for participating in the Army’s CLRP program (one insured or guaranteed by the Higher Education Act of 1965, Title IV, Part B, D, or E)
NOTE: Pay close attention to the third bullet point above.
If you plan on returning to college at a future date, then might want to sacrifice participation in the Army student loan repayment program, or at least think about joining for an extended service contract to prevent yourself from being denied access to Post 9/11 GI Bill benefits.
To ensure your access to Post 9/11 GI Bill benefits, make sure you enlist for at least 6 years, so that you qualify to participate in both the Army LRP program and the Post 9/11 GI Bill.
If you meet the eligibility criteria outlined above, you can begin receiving loan repayment benefits as soon as you complete your first year of service with the Army.
- Not all student loans qualify for Army LRP benefits. Qualifying loans must be:
- 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)
- 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)
- Made under Federal Perkins Loans, part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa)
- Incurred for education purposes (student loan debt only) and made by a lender that is:
- An agency or instrumentality of a State
- A financial or credit institution, or an insurance company, that is subject to examination and supervision by an agency of the US or any State
- From a pension fund or a non-profit private entity, subject to a case by case review and approval
- Examples of Eligible Loans Include:
- Parent Loans for Undergraduate Students (PLUS loans)
- Supplemental Loans for Students (SLS Loans)
- Stafford Loans
- Perkins Loans
- William D. Ford Loans
- Examples of Non-Eligible Loans Include:
- Private loans
- Equity Loans
- State Funded Loans
- Institution Loans
- Consolidation Loans for military dependents (spouses, children, etc.)
How Much Debt Relief Can I Get?
LRP benefits come with different rates depending on your status (whether you’re on Active Duty or in the Reserves), but as of this year, there’s still a bit of a loophole in this process.
Technically, Active Duty personnel are supposed to get more money, but in reality, those serving in the Reserves can qualify for just as much in annual benefits.
Army SLRP Rates for Active Duty Soldiers
Those serving in Active Duty stations are eligible to have 33.33% (or $1,500, whichever is higher) of the outstanding principle balance of their loans paid off for each year of service.
Payments begin on the date that you complete your first year. However, if you are shifted to an MOS role that isn’t eligible for LRP benefits, or if your role changes and is no longer deemed eligible, then you will lose your eligibility.
Army SLRP Rates for Army Reserves
Those serving in the Army Reserves are eligible to have 15% (or $1,500, whichever is higher) of the outstanding principle balance of their loans paid off for each year of service.
Did you see how that works? Even though Reserves members are only eligible to have half as much of their debt paid off in terms of the percentage, if their loans are small enough that $1,500 is higher than 15%, they can receive repayments at the same rate as Active Duty personnel.
Is My Loan’s Interest Covered Too?
One major flaw in the Army’s college repayment program is that it doesn’t provide any financial assistance for interest that you’ve accumulated on your student loan debt.
Instead, the program only offers you help with paying off the principle balance of your loan.
This is definitely a downer, as the benefits would be substantially more valuable if they did cover interest as well, but you may also be able to escape interest accumulation by speaking to your lender about their interest rules.
Can I Receive Deferment or Forbearance for my Loan?
Many loans do not accumulate interest while the borrower is deployed on active duty service, and some have other deferments options, so be sure to speak to whoever services your loan to find out if you can have interest forgiven or deferred to a later date.
Are SLRP Benefits Taxable Income?
Unfortunately, yes, your Army college loan repayment program benefits are counted as taxable income.
However, you won’t ever actually get any of the money that’s provided as LRP for your debt, because the Federal Government sends payments directly to your lender, and it witholds 28% of what it would have paid out on your behalf each year for distribution to the IRS.
So, while LRP benefits do count as taxable income (and have to be accounted for by a separate W-2 that you will receive each year), you won’t have to make any out of pocket payments to account for them.
And that’s a huge benefit, because most other forms of student loan forgiveness do require you to include them as taxable income on your annual tax return, and to pay the IRS a percentage of the benefits you received.
If you’re looking at other forms of student loan forgiveness, and wondering how they’ll compare to the Army LRP program, then please make sure to visit my page about Student Loan Forgiveness and Taxable Income Laws.
And if you’re concerned about tax liabilities, or if you already have tax problems of your own, then please consider visiting my new website, Forget Tax Debt, where I offer advice, tips and tricks for decreasing your outstanding tax debt, covering topics like Settling an IRS Tax Debt, Applying for IRS Tax Debt Forgiveness Benefits, and Avoiding IRS Phone Scams.
Army SLRP Benefits & The Post 9/11 GI Bill
When the SLRP program was first announced, in order to qualify for its benefits, you had to completely waive participation in the Post 9/11 GI Bill, but the situation has changed (according to multiple first-hand reports), and you can now apparently satisfy eligibility guidelines for both programs simply by signing an extended service contract.
While army college loan repayment benefits are available to those who sign up for 4 year enlistments, both SLRP and Post 9/11 GI Bill benefits are being made to those enlistees who agree to join up for 6 years.
If you ever plan on returning to college again, then you will want to strongly consider enlisting for at least 6 years, since Post 9/11 GI Bill benefits provide tens of thousands of dollars in tuition assistance.
Remember that you will only be able to receive loan repayment program benefits on loans that were created before you enlisted, and if your enlistment contract specifically states that you’re participating in the program.
Your loans must qualify for eligibility, and you must remain qualified in your original MOS throughout your initial term of service to continue receiving the benefit.
If, at any time, your loan ends up in default, then you will disqualify yourself from continued SLRP, so stay on top of things to prevent from losing out on the thousands of dollars that you deserve!
For More Information
Talk to your local Army recruiter to get additional details about the Army college loan repayment program, or visit the official Army HRC site here for access the program’s official Information Paper.
And to save tens of thousands of dollars on future education costs, make sure to take a look at our Military Education Benefits Guide.
Please Help Me Out
Help spread the word that Army LRP exists by posting a link to this page on Facebook, Twitter or Google+.
The more Soldiers who sign up for LRP, the more likely this program is to remain funded.
Please do your part to ensure that LRP benefits remain available for generations to come by spreading the word today!
Thanks for your support, and please come back soon.
Disclaimer:Information obtained from Forget Student Loan Debt is for educational purposes only. You should consult a licensed financial professional before making any financial decisions. This site receives some compensation through affiliate relationships. This site is not endorsed or affiliated with the U.S. Department of Education.