If this program is actually being implemented this year, three years after it was described in the circular, I'll eat my keyboard
I'm not certain if my DS' det is right on this or not, but after jumping into this thread yesterday, I reached out to the gentleman who briefed this program to us prior to Matriculation. He says it is a valid, currently funded program. Now, if you are an MS4, I'd do some more investigation. MS1's like my boy may not have this around in 4 years. I was sent 2 attachments, which I will copy and paste below. I'm not attempting to play "Topper" here, as I'd like to know the truth myself. It is similar to and does back up what Clarkson posted. I've got to say though that I'm pretty convinced it currently exists.
First Document:
STUDENT LOAN INFORMATION FOR ACTIVE DUTY SOLDIERS
PART I - AGREEMENT TO ACCEPT SLRP PAYMENT
1. GENERAL AGREEMENT. I hereby agree to meet and maintain the requirements outlined in my Army ROTC Contract (DA Form 597 or 597-3).
2. I agree that I have accepted the Student Loan Repayment Program (SLRP) and understand that an Additional Active Duty Service Obligation (ADSO) will be incurred upon repayment of any of my qualifying loans. The ADSO is based on amount repaid as follows: up to $25,000 incurs one-year ADSO; $25,001 to $45,000 incurs a two-year ADSO; $45,001 to $65,000 incurs a three-year ADSO. This ADSO is consecutive to any other ADSO incurred from any other programs. If I fail to fulfill any part of my military service obligation (MSO) or active duty service obligation (ADSO, if applicable), outlined in my Army ROTC Contract to include any ADSO incurred from loans repaid after I am commissioned, I will be required to reimburse the United States government through repayment of an amount of money, plus interest, equal to the entire amount paid by the United States.
1. Cadets are responsible for verifying that their loans are eligible in accordance with the information listed below: Cadet is responsible for contacting his/her loan holder to request a deferment or forbearance prior to signing any contract addendum.
2. ELIGIBLE LOANS: Only loans that qualify for a deferment or forbearance shall be considered for repayment under SLRP. Loans authorized repayments are:
a. Loans made, insured or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 USC 1071 et seq). Loans made under part D of such title (the William D. Ford Federal Direct Loan Program, 20 USA 1087a et seq).
c. Loans made under part E of such title (20 USA 1087aa et seq). Loans incurred for educational purposes where the lender is:
(1) 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.
(3) A pension fund approved by the Under Secretary of Defense for Personnel and Readiness for the purposes of this program. A non-profit entity designated by a state, regulated by such state and approved by the Under Secretary of Defense for Personnel and Readiness for the purposes of this program.
3. Cadets need to provide the following information:
a. Name, address, and phone number of Loan Holder.
b. Total of Prior Payments
c. Original Date of Promissory Note
d. Original Loan Amount
Second document is an FAQ. I apologize as it is a bit lengthy:
Student Loan Repayment FAQs: 1)Can a student who currently does not have any student loans take one out now and then apply for SLRP? A: Yes they can, but SLRP is not guaranteed. Students are not offered the SLRP until after they have accessed onto Active Duty, so you must ensure they understand that if they are assessed Reserve Duty from the OML, they do not qualify for the SLRP. Once they have signed an agreement, no additional loans will be added to the loan repayment. 2) What is the deadline for requesting this option? A: There is no deadline for requesting the option up until they commission. 3) Is the cadet paid or the institution providing the loan? A: DFAS pays the loan holder. 4) Is the Student Loan Repayment Program taxable? A: Yes, DFAS will provide a W-2 at tax year end for payments authorized under the SLRP. 5) Is there a list of approved loans or lending institutions? A: There is no list of approved loans or lending institutions. If the loan appears to meet the criteria of the SLRP, submit it and the approval authority will make the determination. 6) Will cadets be reimbursed for parts of loans they have already paid? A: No only the unpaid balance of a loan is eligible for the SLRP. 7) When will a student know if they are eligible for the SLRP? A: After they are accessed, normally in the fall of their senior year; if accessed Active Duty then they will be eligible. 8)Is my Active Duty Service Obligation (ADSO) served consecutively or concurrently? A: ADSO associated with SLRP is served consecutively with statutory obligation. Non Scholarship Cadet has a three year obligation and Scholarship Cadet has 4 year obligation by statute; thus obligation would increase by 1, 2 or 3 years depending on Loan Repayment amount. 9) Does this loan pay the entire loans off that are approved to include the interest? A: This is stated on the Counseling Form - Loan repayment is principal only. The portion of the loan that may be repaid is 33 1/2 percent of the original unpaid principal balance or $1,500, whichever is greater. Payments will be made after each completed year of active duty (years of payment shall not exceed three years). 10) If a cadet had $20,000 paid off in student loans - and he/she were branched AV and going 6 yr active duty plus any additional training - which would make approximately 7 years - so they would add one extra year of active duty service, so now they would have approximately 8 years active duty, would their commitment be fulfilled or would they still need to have that additional year in the RV, NG, or IRR? A: If their ADSOs total to 8 years, then they are done, they have completed both their ADSO and MSO. If their ADSOs total to 7 years, then they have 1 year MSO left to complete and can completed in RV, NG or IRR.11) If an SMP cadet had previously received a student loan repayment through the guard - but only for a small amount ($500), can he still apply for this program as he still has outstanding student loans? A: Believe 4c answers this question, “cadet cannot have previously received a student loan repayment through the Army (i.e. prior service).”This includes ARNG, USAR or Active Duty Army. 12) Have a cadet who is applying for a student loan right now, what is the cut off for those wanting to take out loans right now? A: Loan repayment is offered after the student had gone through the Army ROTC Selection and Branching board. After they know they are going Active Duty or ANC, they have up until commissioning to sign up for the program. Once they sign the contract, they cannot add any new loans. 13) What is the due date for this paperwork to be in? A: There is no deadline or suspense for paperwork because the student can take their time to decide to sign up for the program. You must ensure it is documented and up to the EIB prior to commissioning. A reasonable suspense would be within 1 week of signing the contract addendums to ensure proper documentation with the authorities. 14) If prior service SMP cadets are getting current GI Bill and tuition assistance to go to college, but no former student loans paid off by the Army, does this constitute a "student loan repayment through the Army"? A: Neither the GI Bill nor tuition assistance is considered student loans; therefore, they do not constitute a "student loan repayment through the Army". 15) If a cadet is assessed Reserve Component and requests and receives approval for Active Component eligible for the Student Loan Repayment Program? A) Less than .01% of those that request AC prior to commissioning receive the approval, but for the .01% approved for AD, they can sign up for the SLRP between the date of the approval and prior to actual commissioning. After commissioning, the program is no longer available. 16) Does a commercial loan that is used for education qualify? A. Per HRC, Education Incentives Branch, there has to be proof (i.e. notarized by the loaning institution) that the loan was used for education.