Does anyone have any experience with the Student Loan Repayment Program?

SFC Private RallyPoint Member — Thu, 17 Oct 2019 03:26:54 -0400

I'm coming up on my reenlistment and need some info on the student loan repayment program offered by the North Carolina Army National Guard.

I've heard some basic information on it but I've also heard it isn't exactly what is advertised and can be a bit of a headache. Does anyone have any personal experience with this program?

Response by SFC Ralph E Kelley made Oct 17 at 2019 7:23 AM

SFC Ralph E Kelley — Thu, 17 Oct 2019 07:23:10 -0400

Here's something:
Search for "5 Best Student Loan Forgiveness Programs for North Carolinians"
By BETHANY MCCAMISH - Updated August 9, 2019

https://www.studentloanplanner.com/student-loan-forgiveness-north-carolina/

5 Best Options for Student Loan Forgiveness in North Carolina - Student Loan Planner

If you live in North Carolina and work in certain professions, you may be eligible for North Carolina student loan forgiveness programs. Learn more here.

Response by SFC Private RallyPoint Member made Oct 17 at 2019 10:43 AM

SFC Private RallyPoint Member — Thu, 17 Oct 2019 10:43:47 -0400

The biggest issue to be aware of using student loan repayment is that the money will still be taxed as income. That means that your $40,000 student loan repayment well actually total around $30,000 in cash payments to you

Response by SGT Dave Tracy made Oct 17 at 2019 10:48 AM

SGT Dave Tracy — Thu, 17 Oct 2019 10:48:06 -0400

If--and for all I know, that might be a big IF--what is offered mirrors the loan repayment program for Active Duty, then I would say it can be a bit of a headache, and what it covers is principal and not accrued interest, but without knowing if its essentially the same program or a completely different animal, its just speculation based on my AD experience with student loan repayment.

Response by SGM Private RallyPoint Member made Oct 17 at 2019 2:28 PM

SGM Private RallyPoint Member — Thu, 17 Oct 2019 14:28:00 -0400

It requires effort by the Soldier, if that is what you mean by "headache".
Where Soldiers fail and run into the headache:
1. The Soldier is responsible for making monthly payments on their own student loans, the SLRP pays out annually, but will not pay out that year if the loan is in default that year.
2. The Soldier is responsible for updating or confirming the lender information for payment no less than 90 days prior to scheduled annual payment. (Student loans get sold, just like mortgages and car loans).

SLRP does not "pay off the loan", it pays as much as 15% of the original loan total, once a year for every year of the contract.

Response by SPC Private RallyPoint Member made Oct 17 at 2019 4:03 PM

SPC Private RallyPoint Member — Thu, 17 Oct 2019 16:03:35 -0400

It's not as advertised. You need a 50 on your ASVAB, even then, your MOS has to qualify for it. If your MOS qualifies for it, you'll then need to give up your GI bill. The Army will fully pay it off however.