The College Loan Repayment Program (CLRP) is an enlistment incentive. When you enlist, the military will repay a portion of your college loans. This program is for non-prior service enlisted personal only, making officers and those who have previously served in the military ineligible.
Congress limits the maximum amount or repayment by federal law to $65,000. However, each service branch applies its own maximum to this limit.
- The Army repays up to $20,000 for reserve enlistments.
- The Air Force repays up to $10,000 for non-prior service, active duty enlistments.
- The Navy will repay up to $10,000 for Navy Reserve enlistments.
- The Marine Corps, Coast Guard, and Air Force Reserves do not offer the College Loan Repayment Program. However, the Air National Guard offers CLRP of up to $20,000.
Payments are made by the military directly to the lender. The first payment is made after the servicemember has completed one year of service.
The following loans qualify for the College Loan Repayment Program. You must have taken out the loan before you enlisted in the military.
- Auxiliary Loan Assistance for Students
- Stafford Student Loan
- Parents Loans for Undergraduate Students
- Consolidated Loan Program
- Federally Insured Student Loans
- Perkins Loan, formerly known as the National Direct Student Loan
- Supplemental Loans for Students
Am I Eligible?
You must have no prior military experience if you are enlisting in active duty. However, for the Army and Navy Reserves, those with prior military service are eligible.
- In the Air Force and Navy active duty, you must enlist for a minimum of four years. For the Army active duty, you must enlist for a minimum of three years.
- For the Army and Navy Reserves, and Army and Air National Guard, you must enlist for a minimum of six years.
- For the Army, you must have a high school diploma, and must have an overall score of 50 or higher on the Armed Forces Vocational Aptitude Battery (ASVAB).
Restrictions
- If you enroll in active duty, you must give up Montgomery GI Bill Eligibility.
- You must remain on enlisted active duty while enrolled in the program.
- Your loans must be in good standing. Loans in default status, delinquent in payments, interest, or associated charges will not receive payment.
- You are responsible for paying all loan fees and accrued interest.
- CLRP payment will only apply towards the unpaid principle balance.
- CLRP payments will be made directly to the lender.
- CLRP payments are taxable income and are subject to Federal and State taxes.
- CLRP payments will be reflected on a separate W-2 and will be reported to the Internal Revenue Service (IRS).
