Out of all groups of individuals repaying education debts, no group enjoys greater repayment benefits than the U.S. military. If you enter the military after completing your education, the military can help place you in a position within your chosen field of study while simultaneously repaying or forgiving your outstanding student loan debts. Your eligibility for loan forgiveness or repayment assistance services may vary depending on which military branch you choose.
Repayment Programs
Each military branch has a student loan repayment program that makes enlisting in the service more attractive for former students who carry considerable student loan debts. The amount you qualify for will vary depending on the military branch. The Army and Navy, for example, each repays up to $65,000 in student loan debt while the Air Force pays up to $10,000 in student loan debt.
Program Guidelines
Not every new recruit qualifies for the military's student loan repayment program. The requirements you must meet will vary depending on which branch of the military you enter. In general, however, the U.S. government requires that you have a high school diploma and no prior military service. Your enlistment contract must also specifically state that you are enrolled in the program.
The military loan repayment program lasts three years. If you meet the qualifications, your service branch will pay your lender either $1,500 or 33 1/3 percent of your total loan debt -- whichever is greater -- each of the three years.
Loan Forgiveness
If you enter the military after college yet do not qualify for the government's student loan repayment program, you may be eligible for loan forgiveness under the College Cost Reduction and Access Act. The CCRAA provides loan forgiveness for individuals employed in public service and government jobs -- including military members.
Unlike the military's student loan repayment program, there is no cap on the amount of loan debt the CCRAA can forgive. You must, however, make your payments on time each month for 10 years before being eligible for loan forgiveness under the CCRAA. These provisions apply only to student loans issued by the U.S. Department of Education.
Defaulted Loans
Your student loans fall into default if you stop making payments. No branch of the U.S. military allows individuals to enlist if their student loans are in default. If you carry defaulted federal student loans, contact the U.S. Department of Education at 1-800-433-3243 and enroll in the student loan rehabilitation program. Provided you make the next nine payments on time, the U.S. Department of Education considers your account "rehabilitated" and you are free to enlist in the military. The requirements for rehabilitating a defaulted private loan will vary by lender.
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