Navy Student Loan Repayment Program
The Navy may pay off $65,000 of federal student loans of eligible sailors. This program is open to first-time, no-prior service enlistees. After you complete one year of active duty service, basic training and on-job training, the Navy will begin to make payments directly to your lender. Navy reservists are also eligible for the program. AllMilitary.com can help you find schools where you can use federal student loans that can be repaid with the Navy Student Loan Repayment Program.
Loan Repayment Schedules
Loans of active duty sailors will be paid at a rate of 33.3 % of the outstanding principal balance or $1,500 (or whichever is greater) for each year you serve.
The Navy Reserve will repay 15% of the outstanding principle balance or $1,500 (or whichever is greater) for each year of reserve service.
You must pay any debt incurred from a private bank, and the Navy will only pay back these types of loans:
- Auxiliary Loan Assistance for Students (ALAS)
- Stafford Student Loan, formerly know as the Guaranteed Student Loan (GSL)
- Consolidated Loan Program.
- Federally Insured Student Loans (FISL)
- Perkins Loans
- Supplemental Loans for Students (SLS)
Parents Loans for Undergraduate Students (PLUS)
PLUS loans may only be paid if the debt was created for the education of the person enlisting in the Navy, not for other family members.
Active duty servicemembers must give up their Montgomery GI Bill benefits. You cannot receive both Montgomery GI Bill and Student Loan Repayment benefits during the same enlistment period. However, often you may be eligible to receive Montgomery GI Bill benefits during a second enlistment if you received Student Loan Repayment benefits during your first enlistment. Speak to your education office for details.
You may have a lengthy stint of service to complete to be eligible.
Active duty sailors must serve at least one year before receiving benefits.
Naval reservists must enlist for a minimum of six years.
Contact your local Navy recruiting office to enlist. The recruitment officer will review your application and determine whether or not you are eligible for the Navy Loan Repayment Program. You can find a recruiter near you with the Navy's Find a Recruiter tool.AllMilitary.com can help you find schools where you can use federal student loans that can be repaid with the Navy Student Loan Repayment Program.