How to Pay College Debt by Serving in the Army

If you're struggling with student loan debt, joining the Army can significantly reduce your debt load. The Army will pay up to $65,000 of student loan debt if you serve on active duty for three years or more. Loans that the Army Loan Repayment Plan (LRP) will pay for you include loans that were made, insured or guaranteed through the Higher Education Act of 1965, Title IV, Part B, D or E. These types of loans include Stafford loans and Perkins loans: private loans do not qualify for the plan.

Instructions

1

Score 50 or higher on the Armed Forces Qualification Test or Armed Services Vocational Aptitude Battery (ASVAB).

2

Enlist in a critical military occupational specialty (MOS). Your Army recruiter will be able to tell you which MOSs are in a critical demand -- the list changes every quarter and may also depend on how long you enlist for.

3

Ask your recruiter to guarantee loan repayment in writing in your enlistment contract. Your recruiter will fill out DA Form 3286-66, which you'll sign as part of the enlistment process.

4

Decline enrollment in the Montgomery GI Bill using DD Form 2366. Enrollment in the GI Bill is usually part of in-processing during the first few days of boot camp. You cannot qualify for the Army Loan Repayment Plan (LRP) and the GI Bill during the same enlistment period.

5

Fill out DD Form 2475, which will be sent to you by the military when you enlist. You'll need to fill out part of the form and your lender will need to fill out the rest. Your lender will return the form to the Education Incentives and Counseling Branch (EICB) of the Army.

6

Report the loan payments on your taxes: they are counted as income by the Internal Revenue Service (IRS). You'll receive a W-2 from the Army at the end of the tax year with the total amount paid.

7

Keep track of who owns your loans: it's not uncommon for loan holders to sell loans to other companies. If your loan is sold, make sure EICB is aware of the current address of the loan holder.