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Loan Repayment Program

<h1>Loan Repayment Program (LRP):</h1>
<h2>What You Need to Know</h2>
<p><strong>The Basics</strong> Enlisted members of the U.S. Armed Forces are granted a military education benefit known as the Student Loan Repayment Program (LRP). It helps the service members to reduce student loans which they had received while attending classes at various colleges prior to enlisting. It is imperative that you enroll in the Loan Repayment Program during the time you’re enlisting in the Armed Forces. The only requirement for eligibility is that you enlist for a minimum of three years in active duty or six years in the Army Reserve. </p>
<p><strong>Does Each Service Branch Have One?</strong> The U.S Air Force, U.S. Navy and U.S. Army each have their versions of the Loan Repayment Program. The U.S. Air Force repays a maximum of $10,000 while both the U.S Navy and Army repay up to a maximum of $65,000.</p>
<p><strong>Eligibility Requirements</strong> Every branch has slightly varying eligibility criteria but generally, this is how to qualify for the Loan Repayment Program.</p>
<ol>
<li>Decline Montgomery GI Bill enrollment in writing</li>
<li>Have DA Form 3286-66 included in your contract when you enlist</li>
<li>Have a score of 50 or higher on the Armed Services Vocational Aptitude Battery (ASVAB)</li>
<li>Enlist on a critical military occupational specialty (MOS)</li>
<li>Have a guaranteed loan under the Higher Education Act of 1965 prior to your enlistment</li>
</ol>
<p><strong>How Does It Work?</strong> This benefit is extended to you a year after active service in the military. Your branch will service your loan by paying $1,500 per annum. This goes on until the maximum amount of your LRP is reached, or complete servicing of your loan – whichever comes first. The yearly amount is directly credited to your lenders account.</p>
<p><strong>Which Types of Loans Qualify?</strong> Federal loans are covered by the Loan Repayment Program on condition that the repayments were not defaulted by the time of enlisting. You have to have been personally servicing the loan for you to be eligible. The LRP only caters for the unpaid principle that’s outstanding at the time of enlisting into the armed forces.</p>