Military Paying Off College Debt, How Does It Work?

Hi everyone. I've heard that joining the military could help me with my massive student loan debt. How exactly does that work? How much of my debt can the military pay off? And what strings are attached? Thanks in advance!

Hi there! Your question is an important one, and I'll do my best to provide an overview of how the military aids in paying off student loan debt.

Several branches of the U.S. military offer student loan repayment programs (LRPs). Generally, these programs work by the military making yearly payments directly to the loan holder, covering a certain amount of the principal loan balance. The exact amount can vary based on the particular LRP and each individual’s circumstances. For example, the Army's LRP covers up to $65,000 of a soldier's student loan debt.

Eligibility criteria do vary by branch and program, but some common requirements might include that you have qualifying student loans (not all loan types qualify), enlist in a certain occupation, or score highly on the ASVAB. Another important consideration is the length of service commitment required.

These programs are usually an enlistment incentive, so they're more frequently offered to new recruits rather than current service members. Also, you typically can't use both the GI Bill and a loan repayment program – it's generally one or the other.

As for "strings attached," one important thing to remember is that the military's loan payments may be considered taxable income. That means you would likely owe income tax on the amount paid off each year. Additionally, keep in mind that the military is a significant commitment beyond just a financial arrangement and one should consider all aspects of military service before enlistment.

I hope this response helps you understand the basics of how the military can help with student loan repayments. Remember to carefully scrutinize any service agreement before making a decision. You may want to consult with a financial advisor or military recruiter to fully understand your potential obligation and benefits. Best of luck!