Student Loan Repayment Program (SLRP)

The Student Loan Repayment Program (SLRP) is governed by Army Regulation AR 135-7, Chapter 5.1. The following are frequently asked questions concerning SLRP. Note: Additional links to forms and regulations are included within the information. Some of these forms are in .PDF format (get .PDF viewer)

What is the Student Loan Repayment Program ( SLRP)? Who is eligible for SLRP? What forms do I need? How much entitlement will be disbursed? Is entitlement disbursed all at once? When are SLRP payments made? Who gets the money? Can I stop making loan payments? What are my responsibilities? What are unit responsibilities? How am I notified of payment? Can SLRP be terminated?

What is the Student Loan Repayment Program ( SLRP)?

SLRP is a Selected Reserve (SELRES) incentive program that helps you pay off your student loans. When used properly, this program allows you to greatly reduce your educational debts. Having SLRP as part of your contract enables the Army Reserve to help you repay your student loan(s) while successfully participating as a SELRES member. SLRP is an optional benefit that is available for your selection when you enlist or reenlist into the SELRES. If you meet the eligibility requirements, you must select SLRP at the time you sign your contract and execute SLRP Addendum (DA Form 5261-4-R) at that time. Without the addendum, you do not have SLRP.

Who is eligible for SLRP?

To qualify for SLRP you must:

Be eligible to enlist or reenlist as a SELRES member. Information on enlistment and reenlistment criteria can be found in AR 601-210 and AR 140-111 . A SELRES enlisted soldier who is satisfactorily serving and accepts an appointment or commission as an officer in the Selected Reserve after 28 October 2004, may continue to receive SLRP payments as stipulated in the original contract, so long as they remain otherwise qualified (Reference: Ronald Reagan National Defense Authorization Act Fiscal Year 2005, per Memorandum, Assistant Secretary of Defense, Reserve Affairs, OSD-RA, 10 December 2004, SUBJECT: Enhancements to the Reserve Component Incentive Programs. ) Complete a DA Form 5261-4-R, SLRP Addendum, when you sign your enlistment/reenlistment contract. Enlist or reenlist in the SELRES in a bonus unit or critical Military Occupational Skill (MOS) Be a secondary school graduate (para 1-7.1, AR 135-7). Not be contracting to qualify for a permanent civilian position where membership in the Reserve is a condition of employment.

In addition, for non-prior service soldiers, you must:

Enlist for a 6X2 or 8X0 option Score 50 or higher on the Armed Forces Qualifications Test (AFQT).

If you are prior service, you must enlist or reenlist for at least three years. For specific guidance, please refer to AR 135-7, Chapter 5.1-3, "Eligibility"

How are my loans paid?

SLRP payments are not automatic. You must initiate your payment on-line each year. You will receive an AKO email reminding you to start your on-line application 60 days prior to your SLRP entitlement date. See the Loan Repayment Application Users Manual on the My Loan Repayment (SLRP/HPLR) home page for more information. Helpful Hint: Submit all of your eligible loans at the same time to ensure equal distribution of payments.

How much entitlement will be disbursed?

The total amount of money available to you under SLRP depends on your MOS. Most MOSs qualify for $10,000 in loan repayment. However, some critical MOSs qualify for $20,000. You should know whether your MOS qualifies for the $10,000 or $20,000 in student loan payments at the time you signed your contract. Your SLRP amount (either $10,000 or $20,000) is the maximum that can be paid on your student loans by the Army Reserve. It does not necessarily mean that you will receive the whole amount during this one contract. Nor does it mean that you will never have to make any payments on your student loans. The amount you actually receive depends on how many student loans you have and how old they are. Reminder : If you change your MOS or transfer out of a bonus unit, your SLRP incentive could be terminated (unless for normal career progression within your Career Management Field (CMF) or for the convenience of the government).

Is entitlement disbursed all at once?

The SLRP amount is not disbursed in one payment. Each year 15 percent of the original amounts of the soldier's loan(s) plus interest may be repaid. However, there are set maximum and minimum payments for SLRP. The amount of the SLRP (level) determines the maximum. See the example below: SLRP Level Maximum Annual Payment Minimum Annual Payment $10,000 $20,000 $1500 $3000 $500 $500

The actual annual payment depends on the total amount of the soldier's loan(s) and/or remaining principal balance. The only time a SLRP payment would be less than the established annual minimum would be if the soldier's principal/outstanding balance amount were less than $500. See examples below: Example 1: A soldier contracted for $10,000 SLRP. His total amount of loans is $15,000, which exceeds the maximum SLRP benefit of $10,000. Fifteen percent of $15,000 is $2,250. This exceeds the maximum annual payment. Only $1500 would be paid towards his loans. This covers principal and interest.

Example 2: A soldier contracted for $20,000 SLRP. The total amount of her loan is $3,000 and her DD Form 2475 had $25.50 annotated for interest. Fifteen percent of $3000 is $450. Adding the interest ($25.50) to the 15% would be $475.50. This amount is less the minimum annual payment. She would receive the minimum payment of $500 (write-up). This covers principal and interest. Example 3: A soldier contracted for $20,000 SLRP. The total amount of loans is $19,475 and his DD Form 2475 had $91.26 annotated as interest. Even though 15% of the principal ($2921.25) plus the interest ($91.26) totals $3012.51, he would only receive the maximum annual amount ($3000). This covers principal and interest. Example 4: A soldier has a remaining principal balance of $275 no interest annotated. The payment would be for $275. The actual disbursement of money (check) is not sent to the soldier; it is forwarded to the loan agency annotated in Section 4 on the DD Form 2475. The Army will not repay any payments, including interest, made by the soldier towards his/her loan(s). It is the soldier's responsibility to work with his/her loan holder and convince them to accept one SLRP payment per year. If the loan holder still wants additional payments, it is suggested the soldier only make minimum payments. The Army will not reimburse any payments made by the soldier.

When are SLRP payments made?

SLRP payments are made each year on or after your anniversary date (one year after you signed the SLRP addendum that accompanies your contract). Annual payments will only be made on those loans that you have secured for at least one year prior to your anniversary date. The Army Reserve makes payments based on your SELRES status as a Reserve Soldier and will make a payment for each year of satisfactory service that you complete. Do not wait until you graduate to submit your loans for repayment. However, if you do wait until you graduate to submit your loans and you have been eligible for SLRP for the four years you were in school, the Army Reserve will make the back payments to your lending institutions on your behalf. In other words, four payments will be made at once. However, it is best to submit once a year for payments and avoid this situation as well as a large tax bill.

Who gets the money?

SLRP payments are made directly to the bank or loan holder. Payments are not made to you. Any money you pay towards your student loans will not be repaid to you. It is in your interest to work with your loan holder. If possible, get the loan holder to accept one principal payment per year. If your loan holder still wants payments from you, try to make the minimum payment that the loan holder will accept. It is important to note that SLRP payments are taxable income. The money paid on your student loans will be reported to the Internal Revenue Service as part of your Reserve income. This is another reason to submit yearly for SLRP payments as yearly payments have a much smaller impact on your taxable income.

Can I stop making loan payments?

Request, in writing, that your lender use the Army Reserve payment to replace your monthly student loan payment. Lenders usually call this "pre-paying the loan" or "advancing the payments." For example, if your student loan payment is $70 and the Army pays $700, your lender needs to show your payments as advanced for 10 months. If you do not request replacement of student loan payment, your lender, as required by the Department of Education, applies the Army payment as one payment and you will then have to continue your monthly payments.

If the Army's payment does not cover the cost of entire year, you can:

Make the remaining payments Request forbearance until the Army makes another payment

In the example, the Army's payment covers 10 months. To cover the amount owed for the year, you could make two payments or request forbearance for six months until the Army makes another payment.

What are my responsibilities?

Soldier responsibilities include:

Initiate the DD Form 2475 on-line annually. Send the DD 2475 and instruction letter to your financial institution. The financial institution should send the completed DD 2475 to: o HQ USARC USAR Pay Center ATTN: AFRC-COO-RR (SLRP/HPLR) 1913 South B Street Fort McCoy WI 54656-5122

Or, Scan and Email packet to:

rcpsotmslrp@usar.army.mil

Maintain good, legible copies of all promissory notes. Keep copies of all promissory notes, even when consolidating loans. Keep copies of all correspondence received from the lender (financial institution). Do not ignore letters or phone calls from your lender/creditor; respond promptly. Do not let your loans become delinquent and go into default. Request a deferment or forbearance, whichever is appropriate.

How am I notified of payment?

You can view all payments on-line. See the Loan Repayment Application Users Manual on the My Loan Repayment (SLRP/HPLR) home page for more information. The actual payment of your SLRP is forwarded to the loan agency annotated on the DD Form 2475 in Section 4. The check is forwarded to the loan agency(ies) within 30 days from remark posting. You should contact your loan agency to ensure loan repayment was applied appropriately.

Can SLRP be terminated?

SLRP can be terminated at any time for a variety of reasons. The most common reason is for separating from the Selected Reserve (SELRES). If you are discharged or transfer to the Individual Ready Reserve (IRR), your SLRP incentive terminates. It is also important to remember that if you change your MOS or transfer out of a bonus unit, your SLRP incentive could be terminated (unless for normal career progression within your Career Management Field (CMF) or for the convenience of the government). Soldiers assigned to the Control Group or discharged: Human Resources Command, St. Louis (HRC-STL), assists all soldiers who are no longer assigned to a TPU. For those soldiers who feel they have valid claims to receive SLRP payments not made while they were members of a TPU unit, contact your Regional Support Team for assistance. Send the completed forms and copies of promissory notes to your Regional Support Team for final processing and forwarding to Ft. McCoy Student Loan Repayment Office. To speak with the SLRP Program Manager call 800-318-5298 or 314-592-0504. Facsimile number 314-592-0532. Written correspondence regarding your SLRP incentive may be addressed to:

U.S. Army Human Resources Command ATTN: AHRC-PAP-R (SLRP Manager) 1 Reserve Way St. Louis, MO 63132-5200