student loan repayment program

[jj0123]

I am wondering if they pay loan back monthly or lump sum repayment?

[VTguard]

Student loan repayment is monthly

[career_counselor]

I don't know if this is different in other states, but in Ohio the Student Loan Repayment is annual. They pay 15% each year. However, you have to submit a form each year (do it about 90 days before your anniversary date) so they will pay the money.

[Banty]

how do u go about signing up for the repayment program?

[career_counselor]

You have to contract for it by signing a 6 year contract. If you have never contracted for it, you have to extend. HERE'S THE IMPORTANT PART. You don't have to do a 6 year extension...if you still have 5 years remaining, you only have to do a 1 year extension and you can do it right now. If people are telling you that you can't do it until you are within 1 year of your ETS, they are wrong. That is a common misconception. To determine how long you have to extend for, just figure out how long you have until your current ETS and subtract it from 6 years. You extend for that period of time and sign the contract for the SLRP (student loan repayment program). You then will have to send in a form in about 9 months (3 months before your anniversary date) and 15% of your loans will be repaid directly to the loan company (payments are limited to the range of $500 to $3,000 so you'll get a maximum of $18,000 repaid for $20,000 in loans). Another aside...you CAN NOT let your loans go into default at any time after you contract for SLRP. Make sure you continue making your minimum payments!

[shutterm4]

SLRP payments are Paid yearly on your anniversary date, and the SLRP has to be in your contract.

[bigstudent01]

Thanks for the answers on loan repayment. It helped a lot with my http://www.nextstudent.com student loan which I need to get paid off eventually.

[mustanggt50conv]

Are officers currently in the National Guard eligible for the Student Loan Repayment Program?

[matthew.ritchie]

Are officers currently in the National Guard eligible for the Student Loan Repayment Program?

In a word, no.

For some special branch officers (chaplain, and some medical specialties) there are special incentives, to include loan repayment. Basic branch officers don't have this incentive.

[mustanggt50conv]

Thanks Sir!

[shutterm4]

If i have SLRP in my contract, and i decide to do SMP will i be able to keep the slrp through smp, or would it stop when i signed up for rotc?

[career_counselor]

The SLRP would stop (without them taking any money back that they already paid) when you "Participate in SMP/ROTC advanced course or receive an ROTC scholarship"

This is a direct quote from the student loan addendum. However, it may be different than what your contract states if it was a while ago. I advise that you refer to your actual contract for verification. You should be able to find it on iPerms.

[cyall]

When you state that the ARNG pays 15% of one's loan annually. Is that 15% of the balance at that time or 15% of balance at time of enlistment?

Also, my recruiter seems to think I can enlist with an OCS option and get a $10k bonus ans student loan repayment. I assume that is a different bonus from the $20k enlistment bonus (I'm non-prior service). I understand that the bonus will be paid when I finish branch training. Is he correct?

[career_counselor]

In most cases, the ARNG will pay 15% of the loan (maximum of $3,000 per year and minimum of $500 payment) on the amount that you had at the time you contracted for it. The difference is if you happened to contract for it since August 2007 and were in a critical UIC or a critical MOS. You'd have to check your ACTUAL contract to see if you are able to tack more loans on after you contracted for it. It would be in section III 3 f which states
"Loans acquired after my reenlistment will not be eligible for repayment unless I am reenlisting into a Critical UIC or Skill in which case I will be able to acquire new loans during the contracted period."

All of this is contingent on what your ACTUAL contract says because it changes every 6 months or so.

I'll also caution you that many recruiters are under the impression that you'll get to keep your SLRP if you commission. I direct your attention to the termination section of your SLRP contract. Look at what it says in regards to commissioning. In the current contract, it's section V number 10.
"Accept a commission as an officer or an appointment as a warrant officer."

This means that you are terminated from the program. They will not take back any previous payments that they made, but they will not make any new payments. If they say you can commission and keep the SLRP, make sure to get it in writing by getting a new contact. Also read that contract carefully to ensure that it doesn't state "I have not previously received the Student Loan Repayment Program" because if it does, then you are committing perjury and the contract can be voided.

This of course only applies if you've ALREADY contracted for the SLRP previously. If you never have done so, then yes, you could get the $10,000 officer accession bonus as well as the SLRP. One more word of caution...if you are currently on a contract which you got a bonus for, you may or may not be eligible for the officer accession bonus. And if you are on a bonus contract, read it as well because it will spell out what happens if you commission before or after serving 1 year of the enlisted contract. Generally, if you've already served a year of the contract and then commission, you get to keep the bonus...but you may or may not be eligible for the officer accession bonus.

All I can say is Get it in writing and READ what you are signing. Make sure you understand what EVERY statement is saying and don't just go off of what they are SAYING it means...follow your gut feeling. Often, the people administering these bonus contracts don't even understand them themselves.

As for the $20,000 bonus you already contracted for. It is likely that you'll get that once you are Duty MOS qualified. I can't tell you whether you'll get it all at once or in a few payments years apart. It will be in your bonus addendum.

All of this should be able to be found on iPerms through AKO.

If you're in the Ohio ARNG, then let me know and I can help you more directly! If not, get with your Battalion Retention NCO or State incentives office.

[Nicsok123]

In order for the ARNG to repay your loans they cannot be in default is that correct???

[career_counselor]

In order for the ARNG to repay your loans they cannot be in default is that correct???

Correct. Once you contract for SLRP...they can't go into default or you will be terminated from the SLRP program. However, it is difficult for your incentives office to know that they are in default unless you send them a 2475 which your loan company has marked that they are in default. If you get them out of default, send the 2475 to the loan company with your HOR in block 1A and once you get them back forward them to your State Incentives office...you may still get a payment. The question on the 2475 is actually
"4. a. LOAN IN DEFAULT?"
To me, this is just asking if it's currently in default. I would think that the loan company would only mark yes if it is CURRENTLY in default.

However, per the bonus addendum which you sign when contracting for the SLRP, "Loans that fall into default at any time after my enlistment/reenlistment/extension will not be eligible for repayment."

[Don't_Call_It_A_Comeback]

I am almost ready to enlist in the Colorado National Guard in about two-three weeks and while researching what is being offered I stumbled upon a possible glitch in that I have an defaulted student loan. It is for apprx. 12K principal and about an additional 8K in penalties and interest. I have an immediate remedy 45-60 days using the William D. Ford program. This will consolidate and take the loan out of default but if I default again the penalties are exceptionally brutal. The remedy would be to be a good soldier and complete the six year commitment but the cost is 20% on top of the 21K which is about another 4,200. This means taking on a new loan at 25K plus the rate is fixed over the 10 year life of the loan at 8.25%. New federal remedies (relief) for student loan borrows are set to go into effect starting today that would eventually reduce the interest from 6% to around 3-4% regardless of current market rate of interest on loans through 2011. I could make the 12 consecutive payments to get out of default which would allow me to take advantage of the new remedial rates.



Therefore it is critical that I know how this is going to work before I make the move….



Scenario One - In order to be eligible at time of contract (looking to enlist in 2-3 weeks) does loan have to be officially out of default which would mean delaying plans for 45-60 Days + response time because I won’t go through with this until I get a definitive answer. I will just wait out for another 45 – 60 days.



Scenario Two – Is that I can contract under the SLRP Program and I am reading that the monies are disbursed yearly so that after 9 months. I fill out the form and if the loans are not defaulted then they will disburse the money to William D. Ford. Which is plenty of time and it will not slow me down in terms of enlisting in the very near future.



Scenario Three – Wait for some form of processing on the William Ford end and at time enlistment present this paperwork as my lender even though the processing is will not be completed for another 1-3 weeks,

[xduelx]

so if i get a student loan, does it have to be used for tuition in order to be reimbursed by the guard?

[career_counselor]

No, they won't know (nor care) what it was used for...as long as it is a Federally Guarenteed student loan such as:
Stafford Loans (subsidized)
Stafford Loans (unsubsidized)
Federally Insured Student Loans
Perkins Loans
Auxiliary Loans to Assist Students (ALAS)
Supplemental Loans for Students (SLS)
SMART
William D. Ford Federal Direct Loan Program


(State Student Loans and those through personal banks are not eligible for the Student Loan Repayment Program).

[dancersoldier]

I've been in for almost 2 years and i don't think the NG has paid any of their contracted SLRP. I'm contracted for just under 15k. i'm located in michigan. doess anyone have a contact number that i can call? i got an email in my ako email saying that it had been procesed but i didn't notice any change on my loan. i'm deploying in almot exactly 1 month and would like to get this taken care of so if anyone knows a contact name and number that'd be a lot of help!

[dindelus]

As a dumb-dumb, I didn't file the paperwork before my anniversary date last year, which is 05MARCH09, so my SLRP didn't get sent to the loan company. I have SLRP in my contract. Did missing last year nullify my SLRP or can I use it on this next anniversary enlistment date coming up?
I am going to make some calls tomorrow but I thought I would see if I could get some quick answers tonight. Thank You, SPC Wilhelm

[Frisco]

Did missing last year nullify my SLRP or can I use it on this next anniversary enlistment date coming up?

I know someone whose paperwork didn't get filed for almost a year after contracting. When she did, she got it 'back paid' for the first year, and then got her second year as well within a matter of weeks.

I don't know the particulars, but I don't think you lost out by not filing the paperwork right on the anniversary date.

[cbritt]

Hi everyone... I spent 5 years in the Marines from 18 YOA to 23 YOA. I am now 33, have my degree, and have spent the last 9 years in federal law enforcement. Along the way I have acquired 28k in Student Loan Debt. The Student Loan Repayment Program looks very appealing to me and I would be happy to commit to 6 years if Uncle Sam would cover my loans. My question is, the majority of my loans are "Unconsolodated Stafford Loans." These unconsolodated are lumped in with consolodated (only 5k) in a Federal Consolodated Loan. There has been some talk that maybe "unconsolodated stafford loans" do NOT qualify for the SLRP program. Any thoughts?

[dindelus]

As a dumb-dumb, I didn't file the paperwork before my anniversary date last year, which is 05MARCH09, so my SLRP didn't get sent to the loan company. I have SLRP in my contract. Did missing last year nullify my SLRP or can I use it on this next anniversary enlistment date coming up?
I am going to make some calls tomorrow but I thought I would see if I could get some quick answers tonight. Thank You, SPC Wilhelm

UPDATE: So I called the state TA and she told me that I will still get the SLRP even though I missed the date. I just have to fill out the DD Form and send it in. Thanks for the helpful info.

[richierich]

In most cases, the ARNG will pay 15% of the loan (maximum of $3,000 per year and minimum of $500 payment) on the amount that you had at the time you contracted for it.

Is that maximum for Ohio, or for entire ARNG?