How does the military handle paying back student loans?

2019-01-02T22:38:43-05:00

Those who joined the Military with prior student loans. Did the military pay them off for you? In terms of the Repayment?
A little back story I went to college before the army and dropped out before the school filled for chapter 11.
Now looking at my credit report it says “Student loan permanently assigned to government”
Can someone enlighten me please on this?

Response by CSM Charles Hayden made Jan 2 at 2019 10:44 PM

2019-01-02T22:44:22-05:00

They added 10 years to your contract! Read the fine print! SGT Private RallyPoint Member

Response by LTC John Mohor made Jan 2 at 2019 10:44 PM

2019-01-02T22:44:24-05:00

If I had to guess I'd guess you didn't pay off the loans and since the school went under now the government has the "mortgage" on your old loan still waiting to get their pound of flesh!

Response by SFC Private RallyPoint Member made Jan 2 at 2019 11:15 PM

2019-01-02T23:15:45-05:00

They only pay them off if it's part of your contract.
Your loans may have been one of the loans forgiven by the government when several colleges filed for bankruptcy. It was a class action lawsuit, I believe.

Response by MAJ Samuel Weber made Jan 3 at 2019 5:58 AM

2019-01-03T05:58:44-05:00

Have you checked your LES? In the remarks section they track any bonus, debt, or loan repayment. I’d get with your S-1 and request a loan repayment status. I’d have a copy of your DD Form 4 (Enlistment Contract) to show you are entitled. Ensure that you check that your loans are being paid or have been paid before assuming your GTG. You don’t want your credit dinged due to a student loan.

Response by CPT Private RallyPoint Member made Jan 3 at 2019 9:39 AM

2019-01-03T09:39:55-05:00

I have first hand experience with this - and I can go on and ON. In short - you'll need what is called the SLRP in your contract (Student Loan Repayment Program). Then, get ready to do paperwork, nagging, follow up, phone calls, and bitching.
Then - wait for it - its not what you think.
1. You have to pay tax on that shit. Yes, about 30+% So that "OOOOOoooo 50K in SLRP cash" is about 35K for you - and you know that hidden bullshit W2 that is buried in myPAY? Yep - you'll need to find it - as it is separate from your normal W2 - and the IRS WILL HUNT YOU DOWN SON! Those mother effers are like assassins in the night.
2. It has an annual CAP. Meaning your over all amount given (say 50K) is for your entire career in the military -dont expect a 50K check - its capped annually. Cheeky.
3. You have to comply with a list of nonsense even before they pay - and they pay direct to your lender. Examples are 1 year active duty - or fully MOSQ'd, etc...

Worth it? Kind of. Pain in the ass? Totally.