STUDENT LOAN REPAYMENT QUESTION

Discussion in 'Army Warrior Transition Units' started by nwlivewire, Feb 17, 2010.

  1. nwlivewire

    nwlivewire PEB Forum Veteran

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    I am in the CBWTU program - NG on Title 10 WTU orders.

    I need to get a student loan for a couple of classes I'd like to take along the way. Can't afford to pay the money to the school "up front". Please assume I will complete the class or two with passing grades.

    Question: If I get severenced out, or TDRL'd at a later date for medical reasons, how does my student loan repayment situation work out after I end up being found disabled for further military service?

    Thank-you for your response.
     
  2. carnelli53

    carnelli53 PEB Forum Veteran

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    That's a good question and there are several dynamics to any potential answer. If it is a student loan repayment program controlled by your State National Guard, they hold the administrative key to determining if you will continue to receive the benefit after a medical discharge. I can state for the 'big Army' SLRP, the administrative office in Alexandria is clueless on how the program moves forward in light of a medical separation or retirement.

    There is no clear answer on this subject from any controlling agency, I've decided to wait and see if my last payment goes through in June of this year (traditionally, that is when they have made the payments). I'm currently TDRL and I believe there is a very strong argument to be made that those medically separated or retired should not lose their SLRP benefit (much like one does not lose their re-up bonus, or similar payments).

    If there is anyone out there that was medically separated or retired prior to receiving all of their student loan repayments, please chime in and let us know what occurred!
     
  3. nwlivewire

    nwlivewire PEB Forum Veteran

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    Thanks for your prompt response.

    To rephrase this question, let us assume I currently have no student loans out and owing. I am not in an SLRP position.

    I would like to get a student loan (small one) so I can take a class or two. I cannot afford to pay out of my own pocket, the costs of these classes and need to float a loan.

    Question: Since I do not have SLRP in my contract that I know of, what happens if I end up medically retired (TDRL), severenced, or PDRL'd?
    Is there forgiveness of interest or anything?

    Thank-you again!
     
  4. carnelli53

    carnelli53 PEB Forum Veteran

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    As an addendum to my last post, I figured I would call the folks in Alexandria again to see if I could get any answers on this subject. I discovered very interesting answers:

    1. There is no regulatory guidance on the Army SLRP, it seems to be all policy (she mentioned G-1 as their guidance). For those of you saying, "but what about AR 620-212?" - that regulation is obsolete. This brings up some interesting legal issues if there was to a situation where an actionable appeal was possible.

    2. For those medically retired/separated - the Army SLRP folks would like you to send them your DD214 (I would suggest sending PEB documents and any CRSC decision) at the following email, fax, or address:

    pdeei@conus.army.mil

    fax: 703-325-6599

    Department of the Army
    Human Resource Command
    ATTN: AHRC-PDP-E (SLRP)
    200 Stovall Street Rm. 1S-07
    Alexandria, VA 22332-0470

    The person stated that those with an injury in a "war zone, or something like that" may be eligible to have their remaining payments sent to their student loan lenders. Otherwise, those who were injured or have conditions not directly related to combat, they are eligible for prorated payments (most likely based on the amount of months they served in their SLRP contract year). Overall, I got the sense she did not understand the very important distinctions we all know about here in the MEB/PEB/VA world (as far as actual combat, instrumentality of war classifications go).

    Also, what if a non-combat related condition arised in a war zone? These questions cannot be answered by simply looking at a DD214. This lack of guidance and regulation is going to be a big problem, in my opinion.

    In light of this new guidance, I'm adopting a new position (from my wait and see approach) and am going to test the waters (i.e. act as the guinea pig), sending in my information. I am 60% TDRL with 10% CRSC eligibility, the coding for CRSC is 'actual combat'. Based off her description, this should be an open and shut case. For the record, I have 1 SLRP payment owed to me (should be occurring sometime in June).

    I will keep this thread updated as I move along.
     
  5. nwlivewire

    nwlivewire PEB Forum Veteran

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    Wow!

    Interesting how this will shake out for all those under and SLRP contract. Sure hope it goes well for the Servicemember this time around.

    I do know that another goverenment agency - Social Security Disability reciepients - If the VA finds them at 100%, they can submit a form with a copy of their award letter to certain types of student loan lenders, and have their loans completely forgiven.

    But the Army doesn't award 100% - or, they will only award compensation pay at a max of 75% pay for 75% and greater disability. Would be nice for those who fall under the SLRP contracts to have those loans forgiven due to their early military medical retirement. Regardless of the percentage of disability as medical retirement or severance due to medical issues.You're out of the Army, through no fault of your own - you kept your end of the bargain.

    Just wonder about those of us who are NOT SLRP contracted. Wonder what would happen if I took out a small loan for school NOW, and then end up NOT staying in the militray LATER because the Army boots me out on medical severance/TDRL/PDRL. What happens then? How would I afford to pay the loan back?

    No twenty year letter - so no CRDP.

    CRSC qualified - but not a benefit to me as I do NOT have enough AD years (I have 8), and I am enlisted (E-&7).

    I get beat out of BOTH CRDP and CRSC.

    Just wondering............
     
  6. carnelli53

    carnelli53 PEB Forum Veteran

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    nwlivewire,

    I was re-reading this post and realized I did not truly answer your initial question.

    If you were to take out a student loan while serving, your loan would be deferred for the duration of your current active duty contract regardless of whether or not your are medically discharged. Technically, you can be medically retired in March 2010 but if your contract went until 2015, your deferment will last until then. Remember, while student loans are deferred they still collect interest (so sometimes, it may be wiser to just pay them off).

    After you are discharged, it becomes tricky. You can always ask for economic hardship deferments on most loans (especially federal student loans) but private loans (from banks, funds) only have about a year worth of deferments for the debtor.

    There has been some discussion among the moderators concerning TDRL members and Servicemembers Civil Relief Act (SCRA) eligibility. If you are placed on the TDRL and are responsible for some student loans, there is certainly an argument to be made that you are still entitled to an active duty deferment - if not, SCRA protection at the least. These protections could potentially prevent a default on a student loan, but this analysis would have to be done on a case by case basis.
     
  7. nwlivewire

    nwlivewire PEB Forum Veteran

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    Dear Carnelli53:

    Glad you came back to answer it as I was still wondering.......

    I'm gonna see if I can float a small loan once I get off convo leave (you can't take a class in school and be on convo leave at the same time). Hopefully, I can, and then take an entry-level math class (pre-bonehead college as I forgot everything!).

    Thanks for coming back and answering my question. Every forward movement I make, no matter how small, is still a forward movement in the right direction.

    v/r,
    nwlivewire
     
  8. carnelli53

    carnelli53 PEB Forum Veteran

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    Update 3/11/2010

    I just sent out a copy of my DD214, PEB Findings (DA 199), Retirement Orders, and CRSC Findings accompanied with a short memorandum requesting a continuation of my SLRP benefits (presuming they have discontinued, which I am not sure of). I sent out these documents certified mail with signature upon receipt so hopefully I can infer a processing time based on the date of their eventual response (and also to make sure they receive it). This may prove useful for future members who encounter the same issue I am facing now.

    I will update the thread once I hear back from the Army HRC folks in Alexandria, VA.

    EDIT: Just got off the phone with these folks again, they are indicating that the separation code on your DD214 is what determines your eligibility (which is perplexing after she told me that separation for "combat reasons" grant full eligibility for benefits, the separation code on the DD214 does not indicate anything to this effect).

    To reiterate, this is situation applies to those members who enrolled in a service student loan repayment program and were medically retired or separated prior to completing their SLRP obligation.
     
  9. carnelli53

    carnelli53 PEB Forum Veteran

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    Update 4/19/2010

    Received a letter last week from the Army HRC Office in Virginia. It was a generic letter you receive upon initially sending in your documents for the SLRP, at the bottom of the letter was the amounts of my last payout written in pen. No justification, no explanation, nothing. While this is a good thing, I specifically requested supporting policy and/or regulations for their decision. I am sending them another letter this week requesting some explanation as to why I received the last year of my entitlement after placement on the TDRL.

    It may be that they treat each SLRP file on a case-by-case basis, I will update the thread when I find out. Provisionally, this is a victory for those who are medically discharged prior to completing their SLRP obligation.
     
  10. jspear

    jspear New Member

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    I am currently being medically disqualified and given an honorable discharge. I still have 1/4th of my SLRP remaining and am afraid I am going to loose the rest. The only option given me is accept the honorable discharge or If i believe i can perform my duties (which i know i can not) i can request a line-of-duty PEB. Which, will simply result in me being discharged. Any suggestions to ensure that I recieve the rest of my SLRP before I sign the paperwork? I will use your current threads as guidelines if after the seperation I am not awarded my SLRP, but I thought maybe you know something now that could have helped you prior to your seperation that I can do now. Thanks for any help.
     
  11. Jason Perry

    Jason Perry Benevolent Leader Site Founder Staff Member PEB Forum Veteran

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    It sounds like you are getting some bad info. If you go to a PEB, you may be medically retired (you would get a percentage of your base pay and eligibility for you and your dependents for TriCare). It is almost always better to go through the PEB and you certainly won't be any worse off going through an MEB/PEB than if you did not.

    As for SLRP, I am not sure you can get it going forward, I know they will not try to recoup for not meeting your qualifications if you are medically discharged through MEB/PEB process.
     
  12. carnelli53

    carnelli53 PEB Forum Veteran

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    To retain what you can of the SLRP, go through the MEB/PEB. They will not even give it a second look for consideration without some type of medical disability discharge (i.e. medical retirement or medical separation). If you just ETS, they will not be paying out the rest of the benefit and may seek to recoup some of it.

    What Jason stated holds true, "It is almost always better to go through the PEB and you certainly won't be any worse off going through an MEB/PEB than if you did not." It holds especially true regarding SLRP programs. Much of HRC's determinations are done on a discretionary basis (i.e. some random education officer makes the call whether or not you should continue receiving bennies). Seeing a disability incurred in the line of duty is going to at least give you a pro-rated payment for this year and not recoup previous payments. At best, they will pay out your remaining benefits (this is what they did in my case...with the slight difference that I was well over halfway done).

    EDIT: FYI, upon discharge, the SCRA (Servicemembers Civil Relief Act) affords you an automatic deferment on your student loans for the duration of your active-duty service obligation. Upon discharge, you receive an additional six months of deferment from the SCRA. So essentially, your active duty service + 6 months is the length of any deferment as authorized by SCRA.
     
  13. cream00

    cream00 Guest

    Good information thanks.
     
  14. gsfowler

    gsfowler Staff Member PEB Forum Veteran

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    SLRP only applies to TPU soldiers. Once you are discharged it goes away completely. SLRP pays annually on the loan until you have exhausted your funds, you must initiate the payment yourself. All of this is done through AKO and goarmyed

    The loans must be at least one year old before SLRP begins payments and the payment is taxable income.
     
  15. medicalmystery

    medicalmystery PEB Forum Veteran

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    Carnelli53,
    Are you saying that you did receive the final payment on your SLRP after your medical discharge? I am in a similar situation and any input would help, thanks.
     
  16. carnelli53

    carnelli53 PEB Forum Veteran

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    medicalmystery,

    I messaged you on this - but just so it is part of the "record" here, I did receive my final SLRP payment after discharge (I had one year of service remaining, and one SLRP payment left on my contract). I was medically retired.
     
  17. NDBravehart84

    NDBravehart84 PEB Forum Veteran

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    If you are assigned to a CBTWU I think your best approach for continuing education would be VOC REHAB.....I think it's automatic while your on title 10 and part of a CBWTU..... talk to your platoon contact... I did and It all worked out
     

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