Navy Loan Repayment Program (NLRP) - All You Need to Know

The Navy Loan Repayment Program (NLRP) is among the list of incentives Navy recruits enjoy to assist them in affording federal student loans of up to $65,000. The program makes three yearly payments during the first years of a sailor’s service. Remember, you need to apply and join the program before beginning active service.  As of last year, the Navy loan repayment program was on hold, and this hasn’t changed even though the President is a stronger military sympathizer. However, the NLRP might resurrect under two possible conditions:  If Military Loan Forgiveness benefits receive a massive expansion via the President\s student loan plan.  In the event of another major conflict, nations forced the Navy to increase the incentive. This is usually intending to attract more significant numbers of recruits to occur in the junior ranks (not something anybody is looking forward to).  Be it the former or the later, NLRP is still unfunded to date. And so far, there are no indicators to suggest the contrary. Hence, this page is in loving memory of a great military benefits program that was among the top forgiveness programs for students at the federal level.

Navy Loan Repayment Program Benefits

Note: As you read the benefits below, it is essential to note that they no do not apply to any Navy personnel anymore. The Navy, on the 1st of July, 2015, withdrew all funding for the Navy Loan Repayment Program.  As of today, we cannot state when they will reinstate the program. However, our experts are always on the lookout. Therefore, our readers will be the first to know when the NLRP is set to return to its former glory. Having said this, let’s look at the benefits Navy personnel enjoyed under the Navy Loan Repayment Program The NLRP hasn’t completely halted the payment of their benefits to Navy personnel that are eligible. This sum of money is $65,000, and it covers the repayment of student loan debts for beneficiaries. However, you need to know that the Navy has placed restrictions on the number of people who benefit from the program.  Therefore, only a small portion of candidates are still under the program. During its active years, the program was one of the favorable debt relief programs for Navy personnel. It played an instrumental role in the financial stability of its beneficiaries. Hence, those who are interested in applying for the NLRP should refrain from doing so just to enjoy loan discharges. 


This is because the requirements become more stringent every year. Hence, it’s particularly essential to know the latest eligibility criteria before deciding you need to apply. Normally, the program only takes in recruits. The Navy offers this assistance to sailors as they enter active duty. The Navy Loan Repayment Program also supports the Navy reserves. However, you will find yourself extremely disappointed if you’ve had previous military service before joining the reserves.  Because, NLRP only accepts Navy reserves that are fresh recruits with no history of past service in the military. After the beneficiaries of a particular year are listed and chosen, they don’t begin receiving their benefits immediately. The payments start after you’ve completed your first twelve months of active service, finished the full list of training on the job, and completed the fundamentals of navy training.  As mentioned earlier, the program isn’t very easy to get into. Like all other public programs, the point of greatest resistance is the entry point. Hence, you have to overcome these hurdles related or specific to your specific role in the Navy to begin receiving your benefits. 

Requirements of the Program (Eligibility)

To some, the requirements of the Navy Loan Repayment Program are not much of a big deal. Whereas, others find them very difficult to navigate. Whatever may be the case, you’ll have to read these requirements to decide for yourself.  Below are the conditions you have to meet if you intend to receive funds from the Navy under the NLRP. 
  • Submit a formal petition to be part of the NLRP during your recruitment process for the Naval service. This is the first time you attempt to enter the Navy. As we’ve stated earlier, Navy reserves also have to do the same. 
  • Remember to formally write down your request to participate in the NLRP in the contract of enlistment.
  • Turn down your opportunity to participate in the benefits of the Post 9/11 GI Bill program. Nevertheless, there is a way to get on both programs simultaneously, and we’ve to cover the page below. 
  • Your minimum enlistment duration must be no less than 4 years if you’re entering active service in the Navy. 
  • The amount of student loan debt you have must not exceed the minimum amount stated in the guidelines for eligibility, as we’ve stated below this list. 
  • Also, your rating must make you eligible to be part of the student loan repayment program. 


NB: It is crucial to that particular note of point three of the list above. That’s if your plans for continuing your education are to come true. Because you can participate in both programs (the Post 9/11 Bill benefits programs and NLRP). The way is simple; you just need to appear on a contract that allows extended service.  Therefore, if the duration of your enlistment doesn’t reach a minimum of 6 years, you have to up the Post 9/11 GI Bill benefits to participate in the NLRP.

Loan Repayments 300

Assuming you have met all the requirements stated in the previous list, you can start preparing your accounts to receive those benefits. However, you need to do the following:  Doing a full one year, either in the Navy reserves or active service in the Navy.  Complete the mandatory Navy training.  Finish all the mandatory training provided on the job, depending on the particular military role you are playing. 

Loans Qualified for Repayment

Not many classes of loans fall under this category. However, the student loans of Title IV qualify to receive benefits of the Navy student loan repayment program. The list of loans in Title IV include: 
  • Perkin Loans
  • Consolidated Loan Program Loans
  • Supplemental Loans for Students 
  • Stafford Student Loans 
  • Parents Loans for Undergraduate Students
  • Federally Insured Student Loans
If you took your loan from a private bank or have a credit-based loan, you can consider yourself unfit to participate in the NLRP. This is often a significant challenge for a large portion of college students because the majority of them finance their education costs with loans from private lenders. 


Let’s take, for instance; the following loans do not meet the requirements to participate in the program: alternative loans, private loans, signature and any other that isn’t part of the list above.  Often, students do not know if the loan they took is eligible for the Navy Loan Repayment Program. However, finding out is pretty simple. You need to get in touch with your lender directly.  Once you do this, you can inquire if the loan you took is a Title IV loan. Once you hear that your loan isn’t, you have to understand that you can’t participate in the NLRP even if all other eligibility criteria fit your case.  Note that it’s essential to find out your eligibility before you complete your recruitment because you’ll have to inform the recruiter of the Navy about your ineligibility, so they recommend any other forgiveness programs. 

Rates of the NLRP

There are different schedules of NLRP for reserve personnel and sailors that are in active service. Below, we’ve broken down the manner in which the beneficiaries of the program receive their payments. 

Rates of the NLRP

Sailors in the navy reserve will get repayments amounting to 15% of the principal balance of their remaining loan. This amount is paid out every year they remain in the Navy reserves. How you’ll have to complete a particular year before you receive the benefit for that year. 

Rates for the Sailors in Active Duty

If you’re a sailor that’s still in active duty, you’ll have 33% of the remaining loans forgiven. In other words, this is at least $1500. Again, this amount is paid for every complete year of active service you complete. 

Know the Eligible Ratings

The Navy Loan Repayment Program was under restrictions on the 1st of February, 2014. However, the following ratings are the only ones. 
  • Hospital Corpsman
  • Cryptologic Technician (ATF)
  • Information Systems Technician
  • Cryptologic Technician (Networks)
  • Musician
  • Cryptologic Technician (Maintenance)
  • Special Warfare Operation (SEAL)
  • Cryptologic Technician (Technician)
Unless otherwise stated, no other ratings are eligible to participate in the Navy Loan Repayment program.

Does Repayment Cover Interest?

You will not see any forbearance or loan deferment benefits. However, you’ll find that most lenders do not extend their borrowers any forbearance or deferment benefits to active sailors in the Navy. Yet others do give their borrowers the same advantages under several other circumstances.  You can get more information about your chances of being eligible for a loan forbearance or deferment program by contacting the lender of your loan. Then you proceed to officially request for forbearance or deferment. 

Concerns About Taxable Income

We regret to announce that the NLRP is taxable by the Internal Revenue. Hence, the IRS considers its taxable income. Which means you need to include it when you file annual tax returns. Many students are ignorant of the topic of taxes and how to file them.  However, if you will participate in any student forgiveness programs, it’s essential you find out more about taxes and the IRS. After all, your financial future might depend on the knowledge of this topic because it’s bad enough that you’ll carry the burden of student loan debt. You’d like to avoid accumulated taxes and the penalties of tax evasion.  Document the benefits of your NLRP, you’ll get a difficult document named W-2. This is the document you’ll have to use to fill your yearly tax returns. In this particular case, the government deducts the taxes before forwarding the benefits.  Hence, they hold back 28% of the total payments and pay out only the remaining percentage to the lender. The IRS receives the 28%. 

Relations Between The Post 9/11 GI Bill & NLRP

We earlier stated that you would have to forgo the Navy Loan Repayment Program if you participate in the Post 9/11 GI Bill, and vice versa. But we also stated that this applies when you’re finishing an enlistment that will last four years.  To be clear, you can qualify for both under certain conditions. You can find out how to read the sections above. Once you meet the requirements, you can get 100% benefits of the NLRP and Post 9/11 GI Bill simultaneously. In any case, you have to fulfill your years of service once you decide to participate in both programs.  However, there are some instances when Navy personnel have to serve less than 6 years. When this happens, you’ll receive your VA benefits depending on the number of complete years you served in the Navy.  You can find out more about this topic from your representative of your VA. 

Responsibilities Under The NLRP 100

The official NLRP document mentioned that those participating in the program and receiving loan repayments have to keep a simple fact in mind. This is the fact that they have to take real responsibility for their student loans once they are under the Navy Loan Repayment Program.  Therefore, those enrolled in the NLRP need to ensure that their loans are always in good shape. You must remember this fact because the Navy will not extend any benefits to cover any defaulted loans. Many apply for their forgiveness programs without considering these facts.  It isn’t difficult to understand how this affects their chances. 

Official Application

The Navy Loan Repayment Program has quite a straightforward application. Hence, once you find out that you’ve met the application requirements, you’ll have to begin completing six documents. These documents need to be scanned and merged into one portable document file (.pdf) and sent to the address –  Your Navy recruiter will ensure this document reaches the manager of the NLRP. However, the MEPS classifier can also forward your document to the one in charge of the NLRP. Getting the document ready is quite some job, so you’ll want to take your time and get everything right.

Needed Documents (300)

Below, you’ll find the complete list of documents you’ll need to complete an application for the Navy Loan Repayment Program. 
  • The worksheet of the loan repayment program (copy), you, and your MEPS classifier need to sign this document. 
  • An enlistment guarantee that’s’ well completed. In this document, you need to list the particular loan repayment program as the guarantee. Then you sign it, and your MEPS classifier does the same. 
  • A complete Statement of Understanding (SOU) document, duly filled by you. As the others, your Navy recruiter, and yourself. 
  • Your LRP text file of the PRIDE system completed and signed by both you and the MEPS classifier in your case. 
  • The DD Form 2475 is well completed by every lender from whom you’ve obtained student loans. 
  • The promissory note of every student loan that’s eligible. 
Note: You don’t have to submit the original documents. Typically, applicants submit only copies of the original documents.

DD Form 2475

The second to last file in the list above needs additional explanation. This is the DD Form 2475. The fill has four that are essential to complete before submitting. Please read before to learn more. 
  • 1st part – You need to ensure this part is filled and signed by any personnel in the Chain of Command. 
  • 2nd part – It explains itself, and you should know how to go about it. 
  • 3rd part – This part is also your responsibility to fill. You will have to dial up the lender of your loan because you’ll need their assistance. Especially when you find yourself asking many questions. 
  • 4th Part – This is the only part reserved for your lender. After they finish it, you’ll receive your form because they’ll send it to the address stated in Block 1 of the 1st part. 
After all is said and done, you need to ensure the completed form reaches the correct email address. Hence, you need to request that the recipients send you an email to confirm its receipt.

Deadline for Submissions

You had about 60 days to submit the documents of your Navy Loan Repayment Program application. This countdown begins the moment you enter the Delayed Entry Program. After this you should give the entire process about three working days. After this, you can find out if you’ve sailed through or rejected.  In case they reject your form, don’t panic. You only have to submit an additional set of forms well filled and completed per the guidelines. Ideally, you should submit all your completed forms no more than ten days before the deadline. This helps to prevent and avoid any difficulties related to paperwork.  In some cases, you will not receive any approval or rejection alert even after four days of submission of your completed document. If you find yourself in this scenario, you’ll have to contact them on (901) 874-9283 and find out the status of your application.  On the other hand, should you be in a DEP for over two months, or 70 days before the date of shipment, you’ll have to make a formal request for Exception to Policy. This requires that the CO of your recruitment stations completes and signs a form for you.  You’ll have to add this form to the other documents before submitting them for the application. 

Failure to Enlist

Once you don’t get into the Navy, all your eligibility under the Navy Loan repayment program is forfeit. This is because the NLRP only considers new recruits that have successfully satisfied all the obligations for enlistment.  Despite this fact, you’ll find a number of scenarios that can separate you from service even though you couldn’t complete your contract set during the initial service. Meanwhile, you can still qualify for payments sent to cover loan repayment benefits.  These instances may include cases of early separation such that you must have finished a whole year’s duty and citing one of these as your reasons for separation:
  • Hardship
  • Complete or partial disability
  • Enrollment in the candidate school for officers
  • Entry into the service academy
If you find yourself in any of these situations where you’ve separated early, you’ll have to produce the paperwork’s copy that proves discharge. This is the DD Form 214. After this, the NLRP will review your case and decide if you meet the requirements to continue receiving benefits from the program. 

How to Drop Out from the Program 200

You can drop out of the program under the following conditions. 

Sailors Yet to Attend Boot Camp

Assuming you’re one of the sailors that choose to leave the Navy Loan Repayment Program prior to attending boot camp, you’ll have to make a formal request to your MEPS qualifier. In this request, you’ll ask that you be disenrolled from the NLRP. 

Active Duty Sailors

In case you are a sailor that’s currently on active duty, and enjoying the benefits of NLRP per the contract of your service, there is the need to drop out of the process the moment you receive the repayment of your final loan.  After leaving the Navy, should you become an officer that’s commissioned, you’ll have to email or contact NLRP by phone. Also, the same applies to you if you desire to change over to the Post 9/11 GI Bill. 

Other Student Loan Forgiveness Programs for Military Personnel

We have already stated that the Navy Loan Repayment Program has been discontinued. Hence, it’s natural for many readers to wonder about the other options at their disposal. If you’re one of these people, you can read all about other options of student loan forgiveness of military personnel in our blog and other pages on this topic.