10 U.S.C. § 16301 — Education loan repayment program: members of Selected Reserve
submitted 32 years ago by Pub. L. 103-337 to r/title-10-ARMED-FORCES · 714 words · no verdicts yet
The Secretary of Defense may repay certain education loans for qualifying Selected Reserve service. The section sets the yearly amount, funding rules, transfer rules, repayment consequences, and implementing regulations.
(a)(1) Subject to this section, the Secretary of Defense may repay: loans made, insured, or guaranteed under part B of title IV of the Higher Education Act; William D. Ford Federal Direct Loans under part D; loans under part E; and education loans from a lender that is a State agency or instrumentality, a supervised financial or credit institution including an insurance company, a Secretary-approved pension fund, or a State-designated, State-regulated, Secretary-approved nonprofit private entity. Repayment is based on each complete service year. (2) The Secretary may repay these loans for a person serving in the Selected Reserve of the Ready Reserve of a reserve-component armed force and in an officer* program or military specialty the Secretary specifies. The person must have performed that service after the loan was made. (b) For each service year, the amount repaid is 15% of the loan or $1,000, whichever is greater, plus interest that may accrue during that year. (c) If part of a loan is repaid for a year, interest on the rest continues to accrue and is paid as otherwise required. Interest accrued before the current year counts within the total loan amount to be repaid. (d) This section does not authorize refunding a loan repayment. (e) A person who during a year transfers from qualifying service under this section to service qualifying under § 2171 may have a proportionate part of the loan repaid for each part of the year, under the Secretary concerned’s regulations. (f) The Secretary of Defense must regulate how available money is allocated between this section and § 2171 when funds are insufficient to pay* all eligible amounts. (g) When the Coast Guard is not operating as a Navy service, the Secretary of Homeland Security may repay the subsection (a)(1) loans and otherwise administer this section for Selected Reserve Coast Guard Reserve members. (h) Except for a person covered by subsection (e), a member who does not complete the service required for repayment is subject to the repayment rules in 37 U.S.C. § 303a(e) or § 373. (i) The Secretary of Defense may regulate qualified loans, authorized payees, and other repayment terms and procedures. Regulations may allow a lump-sum payment due under a written agreement existing when a member died or became disabled.
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 nonprofit private entity designated by a State, regulated by that 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 of Defense may repay loans described in paragraph (1) in the case of any person for service performed as a member of the Selected Reserve of the Ready Reserve of an armed force in a reserve component and in an officer* program or military specialty specified by the Secretary of Defense. The Secretary may repay such a loan only if the person to whom the loan was made performed such service after the loan was made.
The portion or amount of a loan that may be repaid under subsection (a) is 15 percent or $1,000, whichever is greater, for each year of service, plus the amount of any interest that may accrue during the current year.
If a portion of a loan is repaid under this section for any year, interest on the remainder of the loan shall accrue and be paid in the same manner as is otherwise required. For the purposes of this section, any interest that has accrued on the loan for periods before the current year shall be considered as within the total loan amount that shall be repaid.
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 2171 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 2171 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 2171(a) of this title.
The Secretary of Homeland Security may repay loans described in subsection (a)(1) and otherwise administer this section in the case of members of the Selected Reserve of the Coast Guard Reserve when the Coast Guard is not operating as a service in the Navy.
Except a person described in subsection (e) who transfers to service making the person eligible for repayment of loans under section 2171 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.
Source credit: (Added Pub. L. 103–337, div. A, title XVI, § 1663(d)(1), Oct. 5, 1994, 108 Stat. 3008; amended Pub. L. 104–106, div. A, title X, § 1079(b), Feb. 10, 1996, 110 Stat. 451; Pub. L. 106–65, div. A, title VI, § 676, Oct. 5, 1999, 113 Stat. 676; Pub. L. 107–296, title XVII, § 1704(b)(1), Nov. 25, 2002, 116 Stat. 2314; Pub. L. 108–136, div. A, title V, § 534, Nov. 24, 2003, 117 Stat. 1474; Pub. L. 108–375, div. A, title V, § 526, Oct. 28, 2004, 118 Stat. 1890; Pub. L. 110–181, div. A, title VI, § 672(a)–(c)(1), Jan. 28, 2008, 122 Stat. 184, 185; Pub. L. 111–383, div. A, title V, § 552(b), Jan. 7, 2011, 124 Stat. 4220; Pub. L. 115–91, div. A, title VI, § 618(a)(1)(P), Dec. 12, 2017, 131 Stat. 1426; Pub. L. 116–283, div. A, title V, § 515(a), Jan. 1, 2021, 134 Stat. 3589.)
- 1994Enacted · Pub. L. 103-337 · 108 Stat. 3008
- 1996Amended · Pub. L. 104-106 · 110 Stat. 451
- 1999Amended · Pub. L. 106-65 · 113 Stat. 676
- 2002Amended · Pub. L. 107-296 · 116 Stat. 2314
- 2003Amended · Pub. L. 108-136 · 117 Stat. 1474
- 2004Amended · Pub. L. 108-375 · 118 Stat. 1890
- 2008Amended · Pub. L. 110-181 · 122 Stat. 184, 185
- 2011Amended · Pub. L. 111-383 · 124 Stat. 4220
- 2017Amended · Pub. L. 115-91 · 131 Stat. 1426
- 2021Amended · Pub. L. 116-283 · 134 Stat. 3589
A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-337 on 1994-10-05.
all 0 arguments · sorted by: best
no arguments yet — make the first case