Loan Repayment or Enlistment Bonus?

Navy Student Loan Repayment

To be eligible for the Navy Student Loan Repayment Program (LRP), you must meet the following; You must be Non-Prior Service, a High School Diploma Graduate, get at least a 50QT on your ASVAB test and qualify for and enlist in one of the LRP qualifying ratings. Even if the job you select is eligible for an enlistment bonus you can not be given both – you must choose only one.

What student loans qualify? Existing education loans must meet all of the following requirements in order to qualify for repayment:

The LRP application is complete when you select the LRP option during the classification process at the Military Entrance Processing Station (MEPS). You will provide all items on the LRP checklist your Recruiter will provide. Once all the items from the checklist are obtained MEPS will forward the information to the Commander Navy Recruiting Command LRP Coordinator (CNRC N5312) for final approval and enrollment into LRP. All these items must make it to CNRC N5312 within 60 days after entry into the Delayed Entry Program.

Understand this, you will be automatically disenrolled from LRP and forfeit all future loan repayments if any of the following occur:

So, what is the benefits of LRP? The United States Navy will pay the lesser of the original loan amount or the unpaid principle balance at the time you ship off to Recruit Training Command (not to exceed $65,000). Any accrued interest, fines, penalties, or processing fees cannot be paid for by the Navy. Loan payments will be made directly to lender(s) in payments of 33 1/3 percent of the loan or $1,500 (whichever is greater) for each completed year of service. If the outstanding principle balance becomes less than 33 1/3 percent of the initial balance, the outstanding balance will be paid. The loan(s) must be in good standing to be eligible for repayment. According to the Internal Revenue Service (IRS), loan repayments are subject to federal and state taxes. Taxes will be withheld from your pay for the LRP payment amount and the amounts will be included in your W-2 form. The Navy will not refund any amount of the loan paid by other parties!

Enrollment in the LRP does not exempt you from all obligations associated with the repayment of the loan. Since the first LRP payment cannot be made until you have completed one year of service, you may choose to seek loan deferment or forbearance to prevent defaulting on loans. It is YOUR responsibility to secure deferment or forbearance on your loans and you must communicate such intentions directly to the lender.

Special stuff – If you do not complete your initial term of enlistment, you may qualify for prorated credit if you completed at least one full year of enlisted service. If you do receive a commission or warrant appointment, or are selected to any pre-commissioning programs, you lose your LRP eligibility. The Navy will prorate any eligible payment, the prorated amount is based on the number of years completed at the time of commissioning/appointment.

You may utilize the GI-Bill however, the law currently does not allow LRP participants to use GI-Bill benefits unless you enlist for a second term (and have served a minimum of 24 months of that second term). ***If you want the GI-Bill, you will have $100 per month deducted from your pay for the first year of enlistment. This amount is not refundable if you do not reenlist.***

Update: The new Post 911 GI-Bill does NOT have a $1200 ($100 per month) requirement.

Only you can determine if this program is right for you. Weigh your options and do the math! Some enlistment bonuses may bring the loans down to a manageable amount or may even cover the total.

LRP Worksheet (Draft copy)

Read Comments (84)

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84 Responses to “Navy Student Loan Repayment”

  1. Tyler says:

    I have 6 different Federal Unsubsidized Stafford loans, all of which are eligible for repayment. I’m filling out the paperwork now. Would it be beneficial to consolidate these loans? It would certainly make things easier, so a DD-2475 would only have to be filled out once..

  2. NCCM(ret) says:


    That’s your call – I assume you joined – would you be able to consolidate into a LRP approved loan within the 60 day time limit?

    Secondly, before you did, I would make double sure the new consolidated loan would qualify – double sure.

  3. Tyler says:

    How can I be sure? Is there someone I can speak with, or a number I can call?

  4. NCCM(ret) says:


    If you cannot find any additional benefit beyond the amount of paperwork you may have to accomplish for consolidation, personally, I wouldn’t risk it.

    Writer’s cramp is a small price to pay :)

  5. LadyD says:

    Hello! I am currently getting ready to audition for MU rate as a vocalist. I’m interested in the LRP. My recruiter doesn’t know much about the LRP but has been researching and I have too. He said it is not 100% that I will be approved for the LRP even after submitting application and getting accepted in MU. Can you confirm this? If I choose a rate that’s LRP eligible and submit all required paperwork for eligible loans etc, could there still be reason I wouldn’t get approved. If so, what would be some of the reasons? I want to make sure I know as much as I can to make an informed decision. Thank you for your help.

  6. NCCM(Ret) says:


    When you join, the LRP will be part of your contract (if seats are available; in other words, the program may have expired or run out of money), and then you have 60 days to have all the documentation turned in for approval. If the LRP is not available when you join, do not expect to get it later – make sure it is part of your initial contract.

    If you do not have the documentation turned in on time, or if the loans do not qualify for LRP, then you could be disapproved for the program. I suggest filling out as much of the documentation as you can, starting now. Currently, MU is the ONLY rating authorized to get it.

  7. LadyD says:

    Thank you for response!
    I will get a head start on the paperwork needed using the links you gave previously. Can you provide the new link to the worksheet the MEPS liason will be working from to prepare package- old is invalid?
    I will make sure to have LRP in my contract before I sign anything and leave.
    Also- can you tell me how hard it is to become a Navy vocalist? I want to know my chances going if possible.
    Thanks for you help with answering our questions. Much appreciated!

  8. NCCM(Ret) says:


    The link to the original worksheet is broken, but as luck would have it, I downloaded it. I have added it to the post (LRP Worksheet). It won’t be much help to you, but does give a little idea of how the process may work.

    Whether or not you get selected I would assume would be based on the amount of openings for vocalists and your level of talent.

    I hope you come back and let us know how things go; break a leg!

  9. DeeW says:

    I have a question possed to my by my son who is currently serving on a carrier and emailing is cumbersome. He wants to know if he will be able to apply and receive the Post9/11 GI Bill after he separates from the Navy even though he is receiving the LRP? He joined the Navy and waved his GI Bill rights in lieu of the LRP. He has received his AA however is currently at junior standing at the same educational institution. He wants to complete his BA degree. Will he be able to use the Post9/11 GI BILL? Thanks for your help. Sincerely, Dee.

  10. NCCM(Ret) says:


    First, I would like to thank your son for his service!

    He will not be able to receive GI Bill benefit until he has accumulated the required time on active duty AFTER he completes the time that was required for his LRP. So, essentially, if he is on his first enlistment, and it will be four years in duration, he may be eligible for a small percentage of the Post 9/11 GI Bill for his fourth year of service, but would need to reenlist and serve the required 36 months for full benefit. I suggest contacting the VA, and define the specifics as they relate to him for a more qualified answer – The number: 1-888-442-4551

  11. DeeW says:

    Thank you for your response. I will forward your appreciation to my son.
    I will also check with the VA for further information as you suggested. thank you once again. Sincerely, Dee.

  12. JamesR says:

    I would like to get as much information as I can about the LRP. I have completed a four year enlistment, got out with an honorable discharge. Took a few years off to work towards completing all my educational goals. I have now decided to go back into the Navy Reserves and even possible join as FTS. Is it possible to get all the forms needed to apply for the LRP as a reservist? Or will it be better to wait until I go FTS? Thanks.

  13. NCCM(Ret) says:


    Currently, LRP is only available for the Musician rating (active).

  14. AntonioC says:

    I’ve been in Dep for almost a year now and im currently on my 3rd recruiter. I deped in as an AC but reclassified to nuke. My first recruiter sent in all the paperwork for my LRP to the Navy but it was flagged because the Loan agencies didn’t sign the paperwork. My new recruiter and I are in a mad rush now to get the Loan agencies to fill out the paperwork, send it back to him so he can in turn send it to whomever it needs to be sent to. My question is, if we don’t get the paperwork filled out before the 60 days, which I believe are up already, or before I leave for bootcamp on Oct. 3rd what happens? Do I receive the nuke enlistment bonus instead, or am I out of luck and end up with nothing?

  15. NCCM(Ret) says:


    First question, does the annex to your new contract for the Nuke program specify that you are enrolled into LRP? It has been since February of this year that only the MU rating could get LRP, hence my question. If you were enrolled prior to February, then you are way passed the 60 days – you more than likely have been dropped from it as I doubt they kept the projected funding in place that long (it is possible they did – I’d be curious to know if they had). I would have your recruiter contact the Nuke coordinator for your local command to see if they can get you a new contract with everything the same adding the EB.

    Here is the current LRP/EB program guidance –>

  16. AntonioC says:

    Thank you for your reply. To answer your first question, yes the annex to my nuke contract does specify that I am enrolled into the LRP, I had to choose between that or the nuke EB. I signed my nuke contact in April but had been enrolled in the LRP since October when I enlisted as an AC. Today my recruiter called the LRP help desk and they told him that I still have time to file all the paperwork. It turns out that there was a problem with the Parent Plus Loans and we are currently resolving that issue now. Thank you for your help.

  17. NCCM(Ret) says:


    That’s good news. Keep pressing to ensure all the documents get in.

    BTW, my two older sons were Nukes (both ETs).

  18. jack says:

    Does the navy still have the LRP in 2013 or the end of 2012? I was told qualified LRP only for the musician right now.

  19. NCCM(Ret) says:


    Your information is correct – the only rating right now eligible for LRP is MU.

  20. Marc says:

    My son enlisted in the Navy under the Special Warfare program for a six-year enlistment. Unfortunately, he DOR’d during Hell Week and was reclassified as “Undesignated” and his contract was modified to a four-year term. While in the Special Warfare program his contract indicated that he would receive a bonus upon completion of the program. My son was planning on using that bonus to pay off his student loan but now that is water under the bridge. Under his new contract does he qualify for the Navy Student Loan Repayment Program? If so, who or what office would he need to contact to set this up?

  21. NCCM(Ret) says:


    He is not eligible for SLRP — it is only available to selected ratings at the time of enlistment. For the past year and a half — up until very recently — only the Musician rating was eligible to receive it.

  22. matt says:

    I am a new navy reservist. I was told when I commissioned that I was eligible for 50k student loan repayment. I have been around the world trying to figure out how to apply for this program. My recruiter seems to not know how this works as I was his first officer he recruited. Any help or information with this would be much appreciated.

  23. NCCM(Ret) says:


    Any and all bonuses and/or incentives would be listed in your initial contract — if it is not listed, it would not be available after commissioning.

  24. Kevin says:

    Why is the LRP program not available to individuals who are looking to join the service as an Officer. I would think that the LRP program should be available to some one who is looking to join as an officer since you are required to have a degree to become an officer.

  25. NCCM(Ret) says:


    The LRP program is used as an added benefit to bring people in the service into jobs that are harder to fill — many people strive to be an officer, so those type of incentives are not needed to entice applicants.

  26. LS2 says:

    I got the LRP Guarantee when I joined the navy. Due to a lack of knowledge on the program and a little misguidance from my recruiter I never filed my annual LRP paperwork for the first two years, and filed incredibly late for the last. I finally received some guidance from an former Recruiter who came to my command and completed the paperwork for this year (late) Does this mean I will be out the LRP money that would have been paid the first two years?

  27. NCCM(Ret) says:


    I tend to think it does — I highly recommend that you contact the coordinator at (901)874-9283, or via email at cnrc_lrp-eb[at] (replace the “[at}” with @).

  28. Lydia says:

    Hi, I was enrolled in the LRP program. I started with about $40k in loans and now that all three payments have gone through, I still have over $25k left? Why?! What went wrong? Also I never received any w-2′s in regards to my LRP. I wasn’t even aware they were being taxed? Are there forms I need to do now with my taxes to claim that or something? It feels like I got seriously gipped of having my loans paid off. Also, there is no way that is all interest accrued. I have only been in for 4 years now. Please help.

  29. NCCM(Ret) says:


    The LRP is taxed — it is treated as any bonus would be.

    I highly recommend that you contact the coordinator at (901)874-9283, or via email at cnrc_lrp-eb[at] (replace the “[at]” with @).

    I wish I could be of more help.

  30. Dwight D. [Last name redacted for privacy] says:

    I was wondering why my student loan final payment has NOT been paid yet when I was medically retired in 2011. I had ALL my paperwork turned in to AES, and they were given a receipt on Dec. 19, 2012 from the Government in which the loan was to be paid in full. Now, it’s January 28th, 2014 & my final payment still has not been paid and now I am trying to find out where my loan stands to be paid by the Government. Can anyone please help get me in the right direction? Thank you.

  31. NCCM(Ret) says:

    Dwight D.,

    I highly recommend that you contact the coordinator at (901)874-9283, or via email at cnrc_lrp-eb[at] (replace the “[at]” with @), but I doubt you will receive any bonus monies once you were discharged. If you use SRB as an example, if you are discharged before final payments are made, you do not receive those payments.

    I hope things work in your favor.

  32. Dwight D. [Last name redacted for privacy] says:

    I was forced into retirement due to having my right hip replaced, 2 rods & 8 screws in my back, 3 plates & 6 screws in my neck, my right shoulder operated on. Glad to see I full fill my end of the deal but the Government can not. I do hope that is not the case. But I would not be surprised if it was…


    Thank you for your time.

  33. LaurenG says:

    I have been looking at the Navy LRP the last couple of days and wanted to make sure I am correct in my understanding. All of my loans meet the criteria, but officer training is out correct? I’m okay with just enlisting and starting out at the bottom, despite my degree. Also only certain ratings are qualified to receive lrp? This would mean I would have to choose (or be selected for) one of these ratings to qualify? I’m fairly intelligent and confident in my ability to train for and succeed in most any area, but I want to be prepared.

  34. NCCM(Ret) says:


    LRP is an enlistment option (not for commissioning — officer), and the ratings currently available (as of Feb. 1, 2014) are here — LRP ratings (ratings are subject to change with the next update — updates are not preannounced).

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