College Loan Repayment Program (LRP)

Army Reserve: Active Duty

Benefit Fact Sheet

Share on Facebook Share on X Share on LinkedIn

The Loan Repayment Program (LRP) is a special incentive that the Army offers to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier's qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.


Non-prior service, initial-term Army Reserve Soldiers on active duty are eligible for the Loan Repayment Program if they meet the following conditions:

  • Soldier must have Loan Repayment Program guaranteed in writing in the enlistment contract.

  • Soldier must decline enrollment in the GI Bill program in writing, using DD Form 2366

  • Soldier must enlist for a minimum of six years

  • Soldier must have a high school diploma and a score of 50 or higher on the Armed Forces Qualification Test (AFQT)

  • Soldier must enlist in one of the critical MOSs that qualifies for the program. (Local Army recruiters have the current list, which changes often depending on the current needs of the service.)

  • Loans must be made, insured, or guaranteed prior to entry on active duty.

Benefit Highlights

The Army will repay 15% of the outstanding principal balance, less taxes of the Soldier's student loans annually or $1,500, whichever is greater, after each year of service (up to $20,000, less taxes).graduation cap on a pile of money

Loans that qualify for repayment:

  • Any loan made, insured, or guaranteed under the Federal Family Education Loan Program, part B of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 et seq. )

  • Any loan made under the William D. Ford Federal Direct Loan Program, part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq. )

  • Any loan made under Federal Perkins Loans part E of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087aa et seq. ); or

  • Any loan incurred for educational purposes made by a lender that is -

    • an agency or instrumentality of a State

    • a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State

    • from a pension fund or a non-profit private entity (subject to case-by-case review)

This includes:

  • Parent Loans for Undergraduate Students (PLUS) (only loans incurred for the use of individual contracting for the LRP)

  • Supplemental Loans for Students (SLS)

  • Stafford Loans

  • Perkins Loans

  • William D. Ford Loans

  • Consolidated Loans (only loans incurred for the Soldier’s education will be paid)

There are many loans that do not qualify, Individuals should ensure loans are covered under the Higher Education Act of 1965, Title IV, Part B, D, and E prior to signing the enlistment agreement. Listed below are several loans that are not covered under this Act:

  • Private Loan

  • Equity Loans

  • State Funded Loans

  • Institution Loans

  • Consolidated Loans for someone else (wife, sister, brother, etc.)

  • Parent Loans incurred for someone other than the LRP participant

The Loan Repayment Program payment processing is automated for Reserve Soldiers. They can access the RCMS website here to start their own LRP payment processing for initial and anniversary payments. For technical assistance and general inquiries, Soldiers are encouraged to contact the RCMS helpdesk at 1-800-339-0473. All inquiries should be routed through the helpdesk and a ticket will be created.

Payments are made directly to the lender. The first payment is not made until after the member has completed one year of service (assuming all initial entry training has been completed). The Army will only repay the remaining original unpaid principal, less taxes on qualifying loan(s). Interest (even if it has been re-capitalized into principal) will not be repaid. Additionally, payments made under the LRP are considered taxable income in the year(s) that payments are made. Furthermore, there is no reimbursement available for any loan payments already paid. The Army will not pay on loans that are in default.

In order to maintain eligibility for the Loan Repayment Program, Soldiers must remain qualified in their original MOS throughout their initial term of service. If an LRP participant does not fulfill their obligated term of service by separating from the service early, then that Soldier will lose their eligibility for LRP. There are some exceptions to this early separation rule. For example, individuals who separate early after completing at least one year on active duty, may be eligible for prorated LRP payments if the reason for separation was physical disability, hardship, or certain convenience of the government discharges.

Additional Information

For more information, please visit the Loan Repayment Program web page maintained by the Human Resources Command:

For Reserve-specific information:

Army Regulation 621-202 - Army Educational Incentives and Entitlements 

Document Review Date: 28 June 2024