Title 10 — Armed Forces
Part III · Chapter 109 — Educational Loan Repayment Programs
§ 2171. Education loan repayment program: enlisted members on active duty in specified military specialties
Statutory text
Subject to the provisions of this section, the Secretary of Defense may repay—
any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.);
any loan made under part D of such title (the William D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.);
any loan made under part E of such title (20 U.S.C. 1087aa et seq.); or
any loan incurred for educational purposes made by a lender that is—
an agency or instrumentality of a State;
a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State;
a pension fund approved by the Secretary for purposes of this section; or
a non-profit private entity designated by a State, regulated by such State, and approved by the Secretary for purposes of this section.
Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower.
The Secretary may repay loans described in paragraph (1) in the case of any person for service performed on active duty as a member in an officer program or military specialty specified by the Secretary.
The portion or amount of a loan that may be repaid under subsection (a) is 33⅓ percent or $1,500, whichever is greater, for each year of service.
If a portion of a loan is repaid under this section for any year, interest on the remainder of such loan shall accrue and be paid in the same manner as is otherwise required.
Nothing in this section shall be construed to authorize refunding any repayment of a loan.
A person who transfers from service making the person eligible for repayment of loans under this section (as described in subsection (a)(2)) to service making the person eligible for repayment of loans under section 16301 of this title (as described in subsection (a)(2) of that section) during a year shall be eligible to have repaid a portion of such loan determined by giving appropriate fractional credit for each portion of the year so served, in accordance with regulations of the Secretary concerned.
The Secretary of Defense shall, by regulation, prescribe a schedule for the allocation of funds made available to carry out the provisions of this section and section 16301 of this title during any year for which funds are not sufficient to pay the sum of the amounts eligible for repayment under subsection (a) and section 16301(a) of this title.
Except a person described in subsection (e) who transfers to service making the person eligible for repayment of loans under section 16301 of this title, a member of the armed forces who fails to complete the period of service required to qualify for loan repayment under this section shall be subject to the repayment provisions of section 303a(e) or 373 of title 37.
The Secretary of Defense may prescribe, by regulations, procedures for implementing this section, including standards for qualified loans and authorized payees and other terms and conditions for making loan repayments. Such regulations may include exceptions that would allow for the payment as a lump sum of any loan repayment due to a member under a written agreement that existed at the time of a member’s death or disability.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Department of Defense Authorization Act, 1986
Pub. L. 99–145 title VI § 671(a)(1) · 99 Stat. 583
Enacted · 10 U.S.C. § 2171
Added Pub. L. 99–145, title VI, § 671(a)(1), Nov. 8, 1985, 99 Stat. 661
Source evidence
Code source credit
Added Pub. L. 99–145, title VI, § 671(a)(1), Nov. 8, 1985, 99 Stat. 661Enacted provision · exact public law section
(1) Part III of subtitle A of title 10, United States Code, is amended by adding at the end 10 USC prec. 2001. thereof the following new chapter: “CHAPTER 109— EDUCATIONAL LOAN REPAYMENT PROGRAMS “Sec. “2171. General educational loan repayment program. “2172. Education loans for certain health professionals who serve in the Selected Reserve. “§ 2171. General educational loan repayment program “(a) (1) Subject to the provisions of this section, the Secretary of Defense may repay— “(A) any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); or “(B) or any loan made under part E of such title (20 U.S.C. 1087aa et seq.). Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower. “(2) The Secretary may repay loans described in paragraph (1) in the case of any person for— “(A) service performed— “(i) as an enlisted member of the Selected Reserve of the Ready Reserve of an armed force; and “(ii) in a reserve component and military specialty specified by the Secretary of Defense; or “(B) service performed on active duty as an enlisted member in a military specialty specified by the Secretary. In the case of service described in clause (A) of the first sentence of this paragraph, the Secretary may repay a loan described in paragraph (1) only if the person to whom the loan was made performed such service after the loan was made. “(b) The portion or amount of a loan that may be repaid under subsection (a) is— “(1) 15 percent or $500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(A); or “(2) 33⅓ percent or $1,500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(B). “(c) If a portion of a loan is repaid under this section for any year, interest on the remainder of such loan shall accrue and be paid in the same manner as is otherwise required. “(d) Nothing in this section shall be construed to authorize refunding any repayment of a loan. “(e) Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection during a year shall be eligible to have repaid a portion of such loan determined by giving appropriate fractional credit for each portion of the year so served, in accordance with regulations of the Secretary concerned. “(f) The Secretary of Defense shall, by regulation, prescribe a schedule for the allocation of funds made available to carry out the provisions of this section during any year for which funds are not sufficient to pay the sum of the amounts eligible for repayment under subsection (a). “§ 2172. Education loans for certain health professionals who serve in the Selected Reserve “(a) Under regulations prescribed by the Secretary of Defense and subject to the other provisions of this section, the Secretary concerned may repay— “(1) a portion of a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); “(2) a loan made under part E of such title (20 U.S.C. 1087aa et seq.) after October 1, 1975; and “(3) a health education assistance loan made or insured under part C of title VII of the Public Health Service Act (42 U.S.C. 294 et seq.). “(b) The Secretary concerned may repay loans described in subsection (a) only in the case of a person who— “(1) performs satisfactory service as an officer in the Selected Reserve of an armed force; and “(2) possesses professional qualifications in a health profession that the Secretary of Defense has determined to be needed critically in order to meet identified wartime combat medical skill shortages. “(c) (1) The amount of any repayment of a loan made under this section on behalf of any person shall be determined on the basis of each complete year of service that is described in subsection (b)(1) and performed by the person after the date on which the loan was made. “(2) Subject to paragraph (3), the portion of a loan that may be repaid under this section on behalf of any person may not exceed $3,000 for each year of service described in paragraph (1). “(3) The total amount that may be repaid on behalf of any person under this section may not exceed $20,000. “(d) The authority provided in this section shall apply only in the case of a person first appointed as a commissioned officer before October 1, 1988.”.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(6) · 108 Stat. 2663
Substituted · 10 U.S.C. § 2171
Pub. L. 103–337, § 1663(e)(6), substituted “Education loan repayment program: enlisted members on active duty in specified military specialties” for “General educational loan repayment program” as section catchline
Source evidence
Code amendment note
Pub. L. 103–337, § 1663(e)(6), substituted “Education loan repayment program: enlisted members on active duty in specified military specialties” for “General educational loan repayment program” as section catchline.Enacted provision · exact public law section
(6) The heading of such section is amended to read as follows: “§2171. Education loan repayment program: enlisted members on active duty in specified military specialties”.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(1) · 108 Stat. 2663
Struck · 10 U.S.C. § 2171(a)(1)(B)
Pub. L. 103–337, § 1663(e)(1), struck out “or” after “(B)”
Source evidence
Code amendment note
Subsec. (a)(1)(B). Pub. L. 103–337, § 1663(e)(1), struck out “or” after “(B)”.Enacted provision · exact public law section
(1) Subsection (a)(1)(B) is amended by striking out “or” after “(B)”.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(2) · 108 Stat. 2663
Substituted · 10 U.S.C. § 2171(a)(2)
Pub. L. 103–337, § 1663(e)(2), substituted “case of any person for—
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 103–337, § 1663(e)(2), substituted “case of any person for—“(A) service performed— “(i) as an enlisted member of the Selected Reserve of the Ready Reserve of an armed force; and “(ii) in a reserve component and military specialty specified by the Secretary of Defense; or “(B) service performed” and struck out at end “In the case of service described in clause (A) of the first sentence of this paragraph, the Secretary may repay a loan described in paragraph (1) only if the person to whom the loan was made performed such service after the loan was made.”
Enacted provision · exact public law section
(2) Subsection (a)(2) is amended— (A) in the first sentence, by striking out “person for— ” and all that follows through “(B) service performed” and inserting in lieu thereof “person for service performed”; and (B) by striking out the second sentence.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(3) · 108 Stat. 2663
Amended · 10 U.S.C. § 2171(b)
Pub. L. 103–337, § 1663(e)(3), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The portion or amount of a loan that may be repaid under subsection (a) is—
Source evidence
Code amendment note
Subsec. (b). Pub. L. 103–337, § 1663(e)(3), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The portion or amount of a loan that may be repaid under subsection (a) is—“(1) 15 percent or $500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(A); or “(2) 33⅓ percent or $1,500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(B).”
Enacted provision · exact public law section
(3) Subsection (b) is amended to read as follows: “(b) The portion or amount of a loan that may be repaid under subsection (a) is 33⅓ percent or $1,500, whichever is greater, for each year of service.”.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(4) · 108 Stat. 2663
Substituted · 10 U.S.C. § 2171(e)
Pub. L. 103–337, § 1663(e)(4), substituted “A person who transfers from service making the person eligible for repayment of loans under this section (as described in subsection (a)(2)) to service making the person eligible for repayment of loans under section 16301 of this title (as described in subsection (a)(2) of that section)” for “Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection”
Source evidence
Code amendment note
Subsec. (e). Pub. L. 103–337, § 1663(e)(4), substituted “A person who transfers from service making the person eligible for repayment of loans under this section (as described in subsection (a)(2)) to service making the person eligible for repayment of loans under section 16301 of this title (as described in subsection (a)(2) of that section)” for “Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection”.Enacted provision · exact public law section
(4) Subsection (e) is amended by striking out “Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection” and inserting in lieu thereof “A person who transfers from service making the person eligible for repayment of loans under this section (as described in subsection (a)(2)) to service making the person eligible for repayment of loans under section 16301 of this title (as described in subsection (a)(2) of that section)”.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.Reserve Officer Personnel Management Act
Pub. L. 103–337 § 1663(e)(5) · 108 Stat. 2663
Inserted · 10 U.S.C. § 2171(f)
Pub. L. 103–337, § 1663(e)(5), inserted “and section 16301 of this title” after “this section” and “and section 16301(a) of this title” after “subsection (a)”
Source evidence
Code amendment note
Subsec. (f). Pub. L. 103–337, § 1663(e)(5), inserted “and section 16301 of this title” after “this section” and “and section 16301(a) of this title” after “subsection (a)”.Enacted provision · exact public law section
(5) Subsection (f) is amended— (A) by inserting “and section 16301 of this title” after “this section”; and (B) by inserting “and section 16301(a) of this title” after “subsection (a)”.Effective date note
Amendment by Pub. L. 103–337 effective Dec. 1, 1994, except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.National Defense Authorization Act for Fiscal Year 1996
Pub. L. 104–106 div. A title X § 1079(a) · 110 Stat. 186
Struck · 10 U.S.C. § 2171(a)(1)
Pub. L. 104–106 struck out “or” at end of subpar. (A)
Added · 10 U.S.C. § 2171(a)(1)
Pub. L. 104–106 added subpar. (B)
Redesignated · 10 U.S.C. § 2171(a)(1)
Pub. L. 104–106 redesignated former subpar. (B) as (C)
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 104–106 struck out “or” at end of subpar. (A), added subpar. (B), and redesignated former subpar. (B) as (C).Enacted provision · exact public law section
(a) General Education Loan Repayment Program.— Section 2171(a)(1) of title 10, United States Code, is amended— (1) by striking out “or” at the end of subparagraph (A); (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following new subparagraph (B): “(B) any loan made under part D of such title (the William D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); or”.National Defense Authorization Act for Fiscal Year 2006
Pub. L. 109–163 § 537(a) · 119 Stat. 3136
Added · 10 U.S.C. § 2171(a)(1)(D)
Pub. L. 109–163, § 537(a), added subpar. (D)
Source evidence
Code amendment note
Subsec. (a)(1)(D). Pub. L. 109–163, § 537(a), added subpar. (D).Enacted provision · exact public law section
(a) Additional Loans Eligible for Repayment.— Paragraph (1) of section 2171(a) of title 10, United States Code, is amended— (1) in subparagraph (B), by striking “or” at the end; (2) in subparagraph (C), by striking the period at the end and inserting “; or”; and (3) by inserting after subparagraph (C) the following new subparagraph: “(D) any loan incurred for educational purposes made by a lender that is— “(i) an agency or instrumentality of a State; “(ii) a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State; “(iii) a pension fund approved by the Secretary for purposes of this section; or “(iv) a non-profit private entity designated by a State, regulated by such State, and approved by the Secretary for purposes of this section.” .National Defense Authorization Act for Fiscal Year 2006
Pub. L. 109–163 § 537(b) · 119 Stat. 3136
Substituted · 10 U.S.C. § 2171(a)(2)
Pub. L. 109–163, § 537(b), substituted “a member in an officer program or military specialty” for “an enlisted member in a military specialty”
Source evidence
Code amendment note
Subsec. (a)(2). Pub. L. 109–163, § 537(b), substituted “a member in an officer program or military specialty” for “an enlisted member in a military specialty”.Enacted provision · exact public law section
(b) Eligibility of Officers.— Paragraph (2) of such section is amended by striking “an enlisted member in a military specialty” and inserting “a member in an officer program or military specialty”.Ike Skelton National Defense Authorization Act for Fiscal Year 2011
Pub. L. 111–383 div. A title V § 552(a) · 124 Stat. 4137
Added · 10 U.S.C. § 2171(g); 10 U.S.C. § 2171(h)
Pub. L. 111–383 added subsecs. (g) and (h)
Source evidence
Code amendment note
Subsecs. (g), (h). Pub. L. 111–383 added subsecs. (g) and (h).Enacted provision · exact public law section
(a) Enlisted Members on Active Duty in Specified Military Specialties.— Section 2171 of title 10, United States Code, is amended by adding at the end the following new subsections: “(g) Except a person described in subsection (e) who transfers to service making the person eligible for repayment of loans under section 16301 of this title, a member of the armed forces who fails to complete the period of service required to qualify for loan repayment under this section shall be subject to the repayment provisions of section 303a(e) of title 37. “(h) The Secretary of Defense may prescribe, by regulations, procedures for implementing this section, including standards for qualified loans and authorized payees and other terms and conditions for making loan repayments. Such regulations may include exceptions that would allow for the payment as a lump sum of any loan repayment due to a member under a written agreement that existed at the time of a member’s death or disability.” .National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 div. A title VI § 618(a)(1)(H) · 131 Stat. 1283
Inserted · 10 U.S.C. § 2171(g)
Pub. L. 115–91 inserted “or 373” before “of title 37”
Source evidence
Code amendment note
Subsec. (g). Pub. L. 115–91 inserted “or 373” before “of title 37”.Enacted provision · exact public law section
(H) Section 2171(g).
14 of 14 references resolved to an enrolled provision
Editorial Notes
References in Text
The Higher Education Act of 1965, referred to in subsec. (a)(1), is Pub. L. 89–329, , 79 Stat. 1219. Parts B, D, and E of title IV of the Act are classified to parts B (§ 1071 et seq.), D (§ 1087a et seq.), and E (§ 1087aa et seq.), respectively, of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.
Amendments1994–2017 · 5 rounds
2017
Subsec. (g). Pub. L. 115–91 inserted “or 373” before “of title 37”.
2011
Subsecs. (g), (h). Pub. L. 111–383 added subsecs. (g) and (h).
2006
Subsec. (a)(1)(D). Pub. L. 109–163, § 537(a), added subpar. (D).
Subsec. (a)(2). Pub. L. 109–163, § 537(b), substituted “a member in an officer program or military specialty” for “an enlisted member in a military specialty”.
1996
Subsec. (a)(1). Pub. L. 104–106 struck out “or” at end of subpar. (A), added subpar. (B), and redesignated former subpar. (B) as (C).
1994
Pub. L. 103–337, § 1663(e)(6), substituted “Education loan repayment program: enlisted members on active duty in specified military specialties” for “General educational loan repayment program” as section catchline.
Subsec. (a)(1)(B). Pub. L. 103–337, § 1663(e)(1), struck out “or” after “(B)”.
Subsec. (a)(2). Pub. L. 103–337, § 1663(e)(2), substituted “case of any person for—
“(A) service performed—
“(i) as an enlisted member of the Selected Reserve of the Ready Reserve of an armed force; and
“(ii) in a reserve component and military specialty specified by the Secretary of Defense; or
“(B) service performed”
and struck out at end “In the case of service described in clause (A) of the first sentence of this paragraph, the Secretary may repay a loan described in paragraph (1) only if the person to whom the loan was made performed such service after the loan was made.”
Subsec. (b). Pub. L. 103–337, § 1663(e)(3), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The portion or amount of a loan that may be repaid under subsection (a) is—
“(1) 15 percent or $500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(A); or
“(2) 33⅓ percent or $1,500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(B).”
Subsec. (e). Pub. L. 103–337, § 1663(e)(4), substituted “A person who transfers from service making the person eligible for repayment of loans under this section (as described in subsection (a)(2)) to service making the person eligible for repayment of loans under section 16301 of this title (as described in subsection (a)(2) of that section)” for “Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection”.
Subsec. (f). Pub. L. 103–337, § 1663(e)(5), inserted “and section 16301 of this title” after “this section” and “and section 16301(a) of this title” after “subsection (a)”.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–337 effective , except as otherwise provided, see section 1691 of Pub. L. 103–337, set out as an Effective Date note under section 10001 of this title.
Effective Date
Pub. L. 99–145, title VI, § 671(b)(1), , 99 Stat. 663, provided that:
“The authority provided under section 2171 of title 10, United States Code, as added by subsection (a), shall apply only—
“(A) in the case of persons who enlist or reenlist in the Selected Reserve of the Ready Reserve of an Armed Force or enlist or reenlist for service on active duty after ;
“(B) with respect to service performed after that date; and
“(C) with respect to loans made after .”
Credits
1985–2017 · 6 acts
- 1985Added Pub. L. 99–145, title VI, § 671(a)(1), , 99 Stat. 661
- 1994amended Pub. L. 103–337, div. A, title XVI, § 1663(e), , 108 Stat. 3009
- 1996Pub. L. 104–106, div. A, title X, § 1079(a), , 110 Stat. 451
- 2006Pub. L. 109–163, div. A, title V, § 537, , 119 Stat. 3249
- 2011Pub. L. 111–383, div. A, title V, § 552(a), , 124 Stat. 4220
- 2017Pub. L. 115–91, div. A, title VI, § 618(a)(1)(H), , 131 Stat. 1426.
Show as published
(Added Pub. L. 99–145, title VI, § 671(a)(1), , 99 Stat. 661; amended Pub. L. 103–337, div. A, title XVI, § 1663(e), , 108 Stat. 3009; Pub. L. 104–106, div. A, title X, § 1079(a), , 110 Stat. 451; Pub. L. 109–163, div. A, title V, § 537, , 119 Stat. 3249; Pub. L. 111–383, div. A, title V, § 552(a), , 124 Stat. 4220; Pub. L. 115–91, div. A, title VI, § 618(a)(1)(H), , 131 Stat. 1426.)