When graduation is around the corner, many students begin to panic when they realize that now they're going to have to repay that college debt they've racked up. Army student loan repayment is one option students might consider after graduation. Army student loan repayment is offered to students who sign up for military duty out of college.

Army Student Loan Repayment Options

There are two ways to qualify for Army student loan repayment. The first way is to sign up for full time active duty out of college. Students who do this agree to serve a certain term in the military in exchange for repayment of their student loans. A typical agreement is for graduates to serve three years in active duty for loan repayment of up to 65,000 dollars. At the end of each year of completion, approximately one third of the student's outstanding debt is paid.

The second alternative is to sign up in the Army Reserves. Reserve personnel must serve a longer term in order to have their college debt paid. Six years of reserve service is not uncommon for full payment. Reserve soldiers do not qualify for as much repayment assistance as full time soldiers. Army student loan repayment programs will pay for about 20,000 dollars worth of educational debt for reserve soldiers.

Student loan repayment programs through the military can be applied toward many different educational expenses incurred during college. Stafford student loans and Perkins loans can both be paid off through the Army's repayment plan. Supplemental and auxiliary loans also qualify.