Army Student Loan Repayment

If you are an enlisting active-duty soldier, here is an excellent opportunity to get rid of some portion of your debt. The Army awards participants with high qualifications and decreases their outstanding balance by 33.3% or by $1500 per year of service commitment. In return, soldiers need to agree to serve for three years in a written contract. The Army Student Loan Repayment program is relatively easy to apply to and demands fewer requirements compared to other plans available to soldiers. With its simple conditions and high award, this program is worth applying for. You can get familiar with the eligibility criteria, payment process, pros, and cons of the program in this post. If you still have questions or concerns, you can contact Forget Student Debt for further assistance.

Get Our Help

Applying for a financial aid program is not simple. It requires time, patience, and a clear understanding. Many people interpret the eligibility criteria for repayment or forgiveness programs in the wrong way and lose their chances for the benefit. Others might lack the free time to deal with all the documentation processes. Also, determining which program is the best suit is a challenging task. There is a high probability that if you receive the benefit of one assistance plan, you can lose your eligibility for other aids. Therefore, it is essential to choose the plan with the highest return.

Luckily, Forget Student Loan is here to guide you through this tough journey. Our experts have extensive knowledge of current financial aid programs for people with student debt. They also track the changes in the industry and make sure they are well aware of existing conditions. In this way, our advisors can recommend people in need of the best ways to get rid of the debt. Forget Student Debt stays by your side during the whole process and lends you a hand whenever you need it. We are a call away. Contact us now for your questions or concerns. 

General Information about Army Student Loan Repayment

The Army Student Loan Repayment program is one of the opportunities for military personnel to get financial assistance for their student debts. Here the word ‘student’ matters a lot because loans only for educational purposes qualify for the repayment. There are also many other conditions for eligibility. In general, applicants need to have qualifying loans, such as FFEL, Direct, or Perkins. Their lenders should not be state or private organizations. Additionally, applicants need to go through training and receive at least 50 scores from their armed service test. You can find the requirements for eligibility in detail in subsequent sections.

If a soldier qualifies for this Army Student Loan Forgiveness, they will receive repayment around 33.3%  of their current outstanding debt balance or $1500. Among these two options, the higher one matters. They can enjoy this benefit for a maximum of three years. In return, participants of the program have to agree to serve at least three years in their positions in a written contract.

Successful applicants do not receive the financial resources to make payments. Instead, the awarding amount is directly paid to the lender. We should also mention that the income from this Army Student Loan Forgiveness is taxable. It means awardees need to declare this income and pay additional income tax for that amount.

Get Your Free Assessment

Subscribe and get notified when we launch our platform and be one of the first to try it for free for an entire year. Already subscribed?

What If You Do Not Qualify for the Program?

The program eligibility is more straightforward than other forgiveness or repayment options for military personnel. Yet, many people might still be ineligible for this benefit. In this case, do not lose your hope. If you are ready to commit several years in the military, you can take advantage of many Army Student Loan Forgiveness or Repayment programs. 

One of the most exceptional opportunities is tuition assistance. If you can get this financial assistance for education, there will be no reason to suffer from the debt in the first place. Additionally, the Post-9/11 GI bill also exists, which can cover tuition fees, reimburse the amount, pay for supplies and books, etc. If you wish to participate in other programs, you can check the details of them on our website.

Eligibility Criteria in Details

The eligibility criteria for the Army Student Loan Repayment plan is relatively straightforward compared to other programs for military members. Applicants should not forget that they should be enlisting soldiers who are on active duty. Only if they satisfy this requirement, they can move forward to others. 

There is a mandatory service in return for getting the benefit of this repayment plan. Hence, before applying, military personnel should agree to perform the obligatory commitment. The duration of this service is a minimum of three years.  This eligibility factor demands agreement with this service. So, unless you want to commit your time and effort to at least three years in the military, do not apply for the Army Student Loan Forgiveness.

Also, before applying, people need to cease their enrollment in Montgomery GI Bill. Do not confuse it with other bills, such as Forever or Post-9/11 GI. Those are not barriers to eligibility. Applicants need to eliminate only their Montgomery Bill enrollment in a written form. They can use a special form called DD form 2366 for this purpose. 

Before, we mentioned that only soldiers in the enlistment period could take advantage of the repayment. Related to this requirement, applicants also need to indicate their Loan Repayment Plan in their enlistment contracts. 

Additionally, some educational conditions exist. For instance, applicants should have at least a high school diploma. They should also get a minimum of 50 scores from the qualification test for Armed Services. The results of this test, in another name ASVAB, matters considerably. 

Service-related requirements include that soldiers who want to apply the program should be serving in a qualifying Military Occupational Specialities. There are some critical MOSs that deem soldiers serving there eligible for the Army Student Loan Repayment program. However, the list of such places changes quarterly. Therefore, applicants can get the most recent list from their Local Army recruiters. 

Conditions for Loan Providers

The loan that applicants received is another factor for eligibility. Not all types of loans will qualify for the repayment plan. Your loan should be for educational purposes. You can receive debt from different organizations. First, loans from state agencies or their instrumentalities are completely fine. If you received the debt from a financial or credit institution, you could be eligible under one condition: a State agency should monitor and examine the work process of this financial institution, such as an insurance company. Next, applicants who got the loan from a pension fund will qualify for the repayment plan. 

On the other hand, the case for people who borrowed from a non-profit private organization is complicated. In such matters, the conditions of the borrower will be analyzed by a review. Also, do not forget that all eligibility factors for loan type matters, if an applicant received the debt before starting their active duty and they are non-prior service accession soldiers.

Qualifying Loans

If you want to benefit from the Army Student Loan Repayment program, you should pay extra attention to the loan qualification factors. As mentioned before, not all loans are eligible for this repayment plan, even if your education or military service background satisfies all the related requirements. 

First and foremost, you have to get the loan for educational purposes. Otherwise, there is no need to discuss any further issues. Keep in mind that federal loans, such as Federal Family Education Loan (FFEL), William D.Ford Direct and Perkins Loans, qualify for the repayment plan. Plus, if you borrowed a Supplemental Loan for Students or Stafford loans, you will not face barriers.

Parent Loans for Undergraduate Students have a different case. It would be eligible if the parents of the soldiers borrowed the financial resources for the education of the soldier. However, if the loan is for someone rather than the soldier, then the debt does not qualify for the Army Student Loan Repayment plan.  

On the other hand, some loans are not eligible for the program no matter why it was taken. These loans include any private, state, equity, or institution loans. Plus, people with consolidated loans for the relatives of the soldiers cannot benefit from this financial assistance. 

Finally, as we mentioned in the previous section, your loan provider matters significantly. Even if your loan fits all the requirements in this section, borrowing from an ineligible lender will fail your application. 

Benefits of the Program

We talked a lot about the eligibility conditions, and we are sure you wonder what you will get in return for all these requirements. The benefit of the program is not mind-blowing. However, it is still better than receiving no financial assistance for your debt. Participants of the Army Student Loan Repayment plan will receive either 33.3% (one-third) of the outstanding debt balance or $1500, whichever is greater. They get this repayment amount only after they complete a full year of service. It means the repayment starts at the end of the first year. Soldiers can get this benefit only for three years. 

This amount, either $1500 or one-third of the total remaining balance, is paid directly to the loan holder. Do not forget that this program does not pay any interest, balances of default, or any other fee. Also, this financial assistance is taxable. It means participants have to pay taxes from the ‘repayment income’ at the end of each year. 

Payment Process

In the Army Student Loan Repayment program, borrowers do not receive the financial resources directly. The funds are transferred to the accounts of the lenders. After a soldier serves one year of mandatory commitment, the transfer of repayment happens at the end of that year. This amount is equal to almost one-third of the outstanding balance minus taxes. If you have to pay interest, regardless if it is recapitalized or not, the program will not cover it. Plus, you should not expect to get refunds of the payments that you have already made. The program also does not repay the defaulted loans. 

After you get the benefit, at the end of that year, you have to pay taxes for repayment. It is a taxable income, so consider paying more taxes if you get the financial assistance.

Maintaining Eligibility

Once you become a participant of the Army Student Loan Repayment plan, you need to keep your eligibility conditions. It means you have to serve the Army for the contract period properly. If you fail to satisfy the obligations, such as leaving early, you will lose your benefit. However, some exceptions to this rule also exist. In case soldiers become obligated to cease their positions due to disability or hardship, they can still take advantage of the program. Prorated loan repayments will be available to them. Try to eliminate any other reasons for leaving your mandatory commitment, as it is highly probable that those excuses will not grant you the repayment.

Apply for Student Loan Forgiveness Help

If you struggle with university student loan forgiveness, then you should get help with that. Because the employees in these agencies are dealing with the student loans every day and they have enough experience for solving different kinds of student loan problems.

Should I Apply?

Financial aid programs aim to help debtors to get rid of their loans or decrease their payments. Some people think that it is always better to get some help than receiving no benefit. However, the bad news is that such programs are not beneficial for every applicant. Depending on the conditions, financial assistance can put you in a worse situation. Hence, before applying, you have to understand the benefits and drawbacks of the Army Student Loan Repayment plan.


Undoubtedly, the main advantage of the program is that it repays some amount from your outstanding balance. As mentioned before, you will receive either repayment amount that equals one-third of your remaining debt or $1500. Another benefit of the program is its eligibility criteria is not much demanding as the other programs available to the military personnel. In return for financial assistance, you need to serve just three years. Also, people who got their loans from the credit or financial institutions can be eligible for this program. The only condition for eligibility of such a lender will be an examination by a state agency.


One of the disadvantages of the Army Student Loan Repayment Plan is that its benefit is taxable. It means that awardees should pay additional income tax for the repayment amount from their pocket at the end of the year. Therefore, the total benefit of the program will decrease further by the amount of the tax. Also, keep in mind that if you leave your service early, you will lose your status for the program. 

Yet, these drawbacks exist in many other financial plans, too. If you do not qualify for a better program, you can apply to take advantage of the Army Student Loan Repayment. 

Let Us Guide

While the Army Student Loan Repayment plan is a great opportunity, we understand that not all people in need will be eligible for the program. However, do not lose your hopes. Military service offers multiple programs for getting rid of student debts. Some plans help students cover tuition fees and costs of books, or supplies. In this way, people do not borrow to get an education. 

Many opportunities are available to debtors. You just need to know the details of them and apply them properly to take advantage of them. It is where Forget Student Debt steps into the game to make you a winner. Our experts are ready and willing to facilitate potential applicants with knowledge and recommendations. They have years of experience in this field and are well aware of the current programs. If you share your conditions with our advisors, they can help you to choose the best Army Student Loan Forgiveness or Repayment program. 

Forget Student Debt will also guide you through the whole process of application. We do not want any applicant to fail to get the benefit because of the misunderstandings, technical mistakes, or improper documentation. We have the required free time, patience, and energy that applicants can lack. Contact us now and let Forget Student Debt be your guiding light in this tough road. 

Final Words

Some people might think that military service is a barrier to education and a future career. However, being military personnel brings many benefits for educational purposes. Army services offer multiple programs to eliminate student debts or cover the tuition fees for the students. One such program is the Army Student Loan Repayment plan. This financial assistance is available to active duty personnel with qualifying loans. If you have a Direct, FFEL, or Perkins loan from a federal organization, you have a high chance of taking advantage of the program. This plan brings a 33.3% reduction of remaining debt balance per year of service. Participants of the program should agree to serve at least three years. In this post, we also shared the details of other eligibility conditions. If you do not qualify, check other programs for Military Personnel on our website.