Member Responsibilities for CLRP


To qualify for CLRP, military members must remain on enlisted active duty while enrolled within the program. Loans must be in good standing, i.e., not in default, and therefore the member is liable for paying any fees and accrued interest. CLRP payments are made on to the lender, not the military member, and are considered taxable income.

CLRP payments are made on to the lender. the primary payment isn’t made until after the member has completed one year of service.

For active-duty personnel, the military repays 33⅓ percent of the outstanding principal balance of the loan annually, or $1,500, whichever is bigger , for every year of service.

The Army and Navy Reserves will repay 15 percent of the outstanding principal balance of the loan annually, or $1,500, whichever is bigger , for every year of service. The Air National Guard can pay 15 percent or $5,000 (whichever is greater) annually against the outstanding principal balance. Active duty members may participate within the GI Bill during a subsequent enlistment period, albeit they used CLRP during their first enlistment.

One wouldn’t be ready to use the GI Bill, however, until after 30 months into the second enlistment.

These provisions don’t apply to members of the Reserves and National Guard , who can use the Reserve Montgomery GI Bill, and therefore the CLRP during an equivalent enlistment period.

You can qualify for the student loan repayment benefit up to a maximum amount of $10,000, if you enlist for a minimum of three years. When you complete your first active duty service, you’ll get $1,500 or 33.33% on your remaining principal balance. From then on, you’ll receive payment until you reach the $10,000 limit.

Currently, the Marines don’t offer any military college loan repayment for their service members. In 2007, they launched a trial program to offer a maximum of $30,000 in loan repayment for service members who would accept to serve in active duty for an additional six months in their new enlisting contracts. The program got discontinued in 2011.

The Coast Guard offers new service members up to a maximum of $30,000 loan repayment benefit. You will receive a cap up to $10,000 after the first year of active service. From then on, you can receive the benefits for the next six years, of course, if you haven’t reached the $30,000 mark yet. But you have to sign a contract of three years of military service for you to benefit from the program.

There’s important information to note here. If you receive benefits from the program and later leave the Coast Guard for a different military, you will have to pay back all the money the government gave you to cover your loan debt. If you are not cautious, you could be paying huge bills for a long time. So, don’t enlist to leave soon. The repercussions can be problematic and regrettable.

But if you want to avoid the interest from accumulating altogether, then you have to defer your payments. However, you can only do so while in active duty. What you have to do is to request your lending company that they suspend your loan debt. If they defer your payments, you won’t get an increment in your interest even though your CLRP benefits are clearing your principal loan. Again, that can only happen as long as you serve in active duty.

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