Air Force Student Loan Repayment Programs: A Comprehensive Guide
With the rising costs of higher education, many students face significant debt. Fortunately, the Air Force offers several student loan repayment programs designed to attract, retain, and support its members. These programs provide financial assistance to Airmen and Guardians, enabling them to pursue their educational goals while serving their country. This article explores the various student loan repayment options available through the Air Force, including eligibility requirements, benefits, and application processes.
Service Scholarships and Loan Forgiveness
Service scholarships provided by governmental agencies and military branches offer a career path for students. After graduation or residency, employment in underserved populations or military enlistment for a prescribed length of time may be required.
Public Service Loan Forgiveness (PSLF)
Service to our country qualifies borrowers for one of the most popular student loan forgiveness programs: Public Service Loan Forgiveness (PSLF). This program forgives the remaining federal student loan balance after the borrower makes 120 qualifying monthly payments while working full-time with the military or another qualifying non-profit.
Eligibility Requirements:
- Type of Loan: Only Federal Direct Loans are eligible for PSLF.
- Qualifying Payment Plan: An income-driven repayment (IDR) plan, like the Saving on a Valuable Education (SAVE) Plan or Pay As You Earn (PAYE), is generally the best option to minimize monthly payments and maximize PSLF benefits. Extended term repayment plans last 20 or 25 years, depending on the plan (such as SAVE plan, PAYE, Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR)).
- Commitment: You must make 120 qualifying monthly payments during your military service.
- Full-Time Employment: Members of the Reserves do not automatically qualify for PSLF simply by being in a traditional part-time service role, as this does not meet the definition of full-time employment required for PSLF eligibility.
If you are discharged military personnel, you need to document your employment during your military service to gain credits. The Department of Veterans Affairs (VA) and Social Security Administration (SSA) have systems in place to automatically identify eligible veterans and beneficiaries for Total and Permanent Disability (TPD) discharge.
Total and Permanent Disability (TPD) Discharge
The VA and SSA have systems in place to automatically identify eligible veterans and beneficiaries for TPD discharge.
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Income-Driven Repayment (IDR) Plans
Income-driven repayment plans offer a flexible repayment option for military members who may not qualify for PSLF or who choose to pursue other forgiveness programs. Repayment terms last 20 or 25 years, depending on the plan (such as SAVE plan, PAYE, IBR and ICR).
Air Force Reserve Student Loan Repayment Program (SLRP)
The Student Loan Repayment Program (SLRP) is an Air Force Reserve program designed to attract and retain individuals in critical wartime specialties for participation in the Selected Reserve. It makes one annual payment, per qualifying loan account number, directly to the lending institution toward the balance of an individual’s student loans.
Eligibility Requirements:
- Available to civilian accessions to the Air Force Reserve and prior-service Airmen (including affiliation).
- Enlist with the Air Force Reserve for six years in one of the critical Air Force Specialty Codes (AFSCs) and complete Initial Active Duty Training (IADT). IADT consists of Basic Military Training (BMT) and Technical Training.
- Airman must be awarded an AFSC and fill a valid Selected Reserve position based on their duty AFSC, which appears on the current Air Force Reserve Master Incentive Listing at the time of enlistment.
- Approval is contingent upon available funding.
- Airmen must individually qualify and select two out of the three incentives (SLRP, Enlisted Incentive Program, and Montgomery GI Bill - Selected Reserve (MGIB-SR) Kicker program).
Benefits:
- Annual payment will be 15% of the outstanding balance or $500 per each qualifying loan account number including interest, whichever is greater, up to $3,500 for each year of satisfactory service, regardless of when the member entered the program.
- No payment will exceed the amount needed to liquidate a loan, and no one individual may ever exceed $20,000 over the lifetime of the program (including any interest that may have been paid).
- Payments are made annually based on the enlistment anniversary date until the enlistment is complete.
Loan Requirements:
- Loans must be Federal guaranteed loans (i.e., Stafford, Ford, or Perkins loan ONLY).
- Federally recognized loans made must be insured or guaranteed through a recognized financial or educational institution.
- If the member's loan is moved to a new Federally guaranteed lender, it is the member's responsibility to inform their respective Base Education Services Officer (ESO).
Application Process:
- Member must visit their servicing Military Personnel Section (MPS)/Wing Training Office within 90 days of enlistment anniversary date to initiate the loan repayment process. The MPS/Wing Training Office will provide the member counseling, program facts and contact information, and written agreement.
- Member must request annual loan payment in writing (DD Form 2475) within 90 days of completing each year of satisfactory service.
- Member and/or lending institution provides the Base ESO the appropriate documentation (promissory note and DD Form 2475) to validate loan or loan status and complete SLRP repayment processing.
- Contact an Air Force Reserve Recruiter to apply for SLRP to inquire about eligibility.
Federal Student Loan Repayment Program
The Federal student loan repayment program permits agencies to repay Federally insured student loans as a recruitment or retention incentive for candidates or current employees of the agency. Loans eligible for payment are those made, insured, or guaranteed under parts B, D, or E of title IV of the Higher Education Act of 1965 or a health education assistance loan made or insured under part A of title VII or part E of title VIII of the Public Health Service Act. As with any incentive, this authority is used at the discretion of the agency.
Eligibility Requirements:
- An employee receiving this benefit must sign a service agreement to remain in the service of the paying agency for a period of at least 3 years.
- Periods of leave without pay, or other periods during which the employee is not in a pay status, do not count toward completion of the required service period. The service completion date must be extended by the total amount of time spent in non-pay status.
- An employee shall be ineligible for benefits under this section if the employee occupies a position that is excepted from the competitive service because of its confidential, policy-determining, policy-making, or policy-advocating character.
Benefits:
- Eligible employees may be considered for loan repayment assistance up to $10,000 per calendar year, with a $60,000 lifetime maximum for any individual.
- Assistance may be provided for both recruitment and retention purposes.
- Loan repayment may be authorized upon determination that, in the absence of loan repayment benefits, the agency would have difficulty filling a position with a highly qualified candidate or retaining a highly qualified employee.
Service Agreement:
- Before any loan repayment may be made, the employee must sign a written agreement to serve a minimum of 3 years with the employing agency, regardless of the amount of repayment authorized.
- This 3-year period will begin when the first payment is made to the holder of the loan.
- Any further repayment made after the initial agreement has been completed will extend the service agreement by 1 additional year for each additional payment made.
- An employee who fails to complete the agreed-upon period of service must refund the full amount of benefits received during the initial 3-year period or the extension year only.
- Repayment may be wholly or partially waived at the discretion of the agency if recovery would not be in the public interest or would be against equity and good conscience.
Payment Process:
- Payments will be made directly to the lending institution holding the loan on behalf of the employee.
- One payment will be made each year for the duration of the service agreement.
- Loan repayment benefits made under this authority are in addition to basic pay. These benefits are subject to Federal income tax, FICA and Medicare withholding, and any State or local income tax that may be applicable.
Agency Responsibilities:
- Before providing student loan repayment benefits, an agency must establish a student loan repayment plan.
- The agency must document in writing each approval of student loan repayment benefits.
- The agency may make loan payments only for student loan debts that are outstanding at the time the agency and the employee (or job candidate) enter into a service agreement.
- Each agency must keep a record of each determination to provide student loan repayment benefits and make such records available for review upon request by OPM.
- By March 31st of each year, each agency must submit a written report to OPM containing information about student loan repayment benefits it provided to employees during the previous calendar year.
Additional Air Force Educational Opportunities
Beyond loan repayment programs, the Air Force offers various educational opportunities to support the professional development of its members.
- Air Force Tuition Assistance (TA) Program: Pays 100 percent (up to $250 per semester hour or equivalent) of the cost of college tuition with a limit of $4,500 per fiscal year.
- Post-9/11 GI Bill: Eligible, active duty Airmen can receive up to 36 months of benefits for education and training opportunities outside of the Air Force.
- Montgomery GI Bill (MGIB): Eligible, enlisted Airmen may receive up to 36 months of benefits for education and training opportunities outside of the Air Force.
- Air Force Reserve Officer Training Corps (AFROTC): A scholarship program available at nearly 1,000 colleges and universities across the country.
- Air Force Academy: A university that offers world-class education, leadership training, and cost-free tuition in exchange for a commitment to serve in the Air Force or Space Force.
- Officer Training School (OTS): Civilians and prior-service Airmen with college degrees can take part in this nine-week program to become an Officer in the Air Force.
- Air Force Institute of Technology (AFIT): Allows Air Force Officers to pursue graduate studies as a full-time active duty assignment.
- Residency Financial Assistance Program: Medical and dental professionals can complete their residency without financial worry.
- Allied Health Internship Program: Offers several internship opportunities at Air Force medical facilities.
- Physician Assistant Training Program: Active Duty Airmen can apply to the Physician Assistant Training program.
- Healthcare Continuing Education (HCE): Supports healthcare career development with mentorship opportunities and humanitarian missions.
- Nurse Enlisted Commissioning Program (NECP): Offers Active Duty Airmen an opportunity to earn a bachelor’s degree in nursing to eventually become a Nurse in the Air Force.
- Health Professions Scholarship Program: Covers all tuition and required fees, including textbooks, small equipment and supplies, as well as a monthly allowance for living expenses.
- Air Force Judge Advocate General’s (JAG) School: Encourages JAGs to expand their knowledge in different areas of practice, become more specialized in their field, or earn Continuing Legal Education (CLE) credits.
- Chaplain Candidate Program: Seminary and religious school students interested in Air Force service can apply to the Chaplain Candidate program.
- Enlisted College Loan Repayment Program (ECLRP): Allows Active Duty Airman to earn 33 ⅓ percent (a maximum of $21,664.50) of their unpaid principal loan balance each year for three years.
- LEAD Program: Gives Airmen the opportunity to earn a college degree at the Air Force Academy and Academy Prep School.
- POC-ERP: Active Duty Airmen can take advantage of the POC-ERP to enter Air Force Reserve Officer Training Corps (AFROTC).
- SOAR program: Enlisted Airmen who strive to attend or complete college may apply to the SOAR program.
AFAS Standard Assistance and Falcon Assistance
The Air Force Aid Society (AFAS) provides financial assistance to Airmen and Guardians through Standard Assistance and Falcon Assistance programs.
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AFAS Standard Assistance
AFAS Standard Assistance provides no-interest loans (and sometimes grants based on circumstance) as a solution to help Airmen and Guardians resolve unexpected financial emergencies and work towards achieving lasting financial stability.
Eligibility Requirements:
- Basic Military Training School students are only eligible for emergency travel assistance when there is serious illness or death of an immediate family member.
- Each Airmen and Guardian can individually apply for Standard Assistance to meet their emergency need. However, AFAS looks at the entire family budget and family situation when making assistance decisions.
Benefits:
- Loans are usually repaid within 12 months and do not exceed 24 months.
- There is no current limit on the number of Standard Assists an Airman or Guardian can receive. However, any assistance provided by AFAS is meant to stabilize an emergency situation and is not intended as a revolving line of credit.
Payment Process:
- Standard Assistance payments will be made via Bank ACH or Zelle.
- All Falcon Assistance loans for Active Duty Air Force and Space Force personnel are repaid by allotment.
Falcon Assistance
Falcon Assistance is another program offered by AFAS to provide financial assistance to Airmen and Guardians.
Eligibility Requirements:
- If you have an AFAS loan with a remaining balance, you are not eligible for a Falcon Assistance loan. However, you may still request financial assistance by applying for the Standard Assistance.
- It is possible that after you receive a Falcon Assistance, that you may have a new need. If this occurs, your total need can be addressed using the Standard Assistance process.
Benefits:
- There is no current limit on the number of consecutive Falcon Assistance loans Airmen and Guardians can receive.
Payment Process:
- Falcon Assistance payments will be made via Bank ACH or Zelle.
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