I stumbled upon the Military College Loan Repayment Program, and it seems like a great way to deal with college debt. Has anyone here utilized this program? How exactly does it work? Can it cover all loan types or just federal?
The Military College Loan Repayment Program is indeed a practical way for individuals serving in the military to handle their student loan debt. The eligibility and specific terms can vary by branch and each branch has its own loan repayment program meant for enlisted personnel.
For example, if you enlist in the Army, the Army College Loan Repayment Program can repay up to $65,000 worth of student loans. For the Navy, one can receive up to $65,000 towards loan repayment under the Navy Student Loan Repayment Program, available for select Navy jobs. The National Guard provides a Student Loan Repayment Program and the Air Force does not offer direct student loan repayment but provides education assistance.
It's important to note that these programs mostly cover federally insured loans such as the Stafford, Perkins, and Parent/Grad PLUS loans. Private loans or those consolidated with non-education loans are typically not included.
Before joining, I recommend getting a clear understanding of the service commitment. Many times, signing up for these programs requires a service commitment, so you should be fully aware of what's being asked of you in exchange for the loan assistance. Consult with a military recruiter to get specific details regarding your situation.
Remember that the repayment is considered taxable income. So while you may get substantial help with your loans, the amount repaid will be considered as income on your federal tax return.
Finally, if you're currently a student or plan to be one while serving, many branches also offer Tuition Assistance programs. These can help offset the cost of your education while you're serving, helping to reduce your need for student loans in the first place.
Good luck as you consider this path for reducing college debt.
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