College Loan Repayment Program

The College Loan Repayment Program (CLRP) is an enlistment incentive. Beginning one year after your service begins, the Air Force will make annual payments totaling up to $10,000 on your outstanding college loans. The Air Force will pay off 33 1/3 percent or $1,500 of your outstanding loan, which ever is greater, for each year of service. Payments stop once the $10,000 ceiling is reached. AllMilitary.com can help you find schools where you can use federal student loans that can be repaid with the Loan Repayment Program.

Highlights

• These loans qualify for the College Loan Repayment Program:

  • Auxiliary Loan Assistance for Students (ALAS)
  • Stafford Student Loans
  • Parents Loans for Undergraduate Students (PLUS)
  • Federally Insured Student Loans (FISL)

  • Perkins Loan Supplemental Loans for Students (SLS)

• The Air National Guard offers up to $20,000 in loan repayment for specific fields that it deems to be in shortage.

Drawbacks

• Airmen can’t receive College Loan Repayment Program and Montgomery GI Bill benefits at the same time. They must pick one.

• The College Loan Repayment Program isn’t offered to Air Force Reserves, but it’s offered to Air National Guard members in certain instances.

• Funds received through the program are taxable, so 28% of repayments are withheld for tax purposes. So you’ll really only receive around $7,200 in loan repayment if you reach the $10,000 ceiling.

• Not all loans qualify for repayment. For example, these types of loans don't qualify:

  • Private loans
  • Equity loans
  • State-funded loans
  • Institution loans

Eligibility

You must meet four requirements to be eligible for the College Loan Repayment Program:

1. No Prior Military

   No prior military experience.

2. Four Years

   Enlist for a minimum of four years.

3. No Montgomery GI Bill

   Forfeit Montgomery GI Bill eligibility while receiving College Loan Repayment benefits.

4. Enlistment Contract

   The College Loan Repayment Program must be indicated on your enlistment contract. Talk to an Air Force recruiter or an Air Force Advisor to find out more about enlistment contracts.