14 U.S.C. § 2772 — Education loan repayment program for members on active duty in specified military specialties

(a) In General. (1) Repayment. Subject to this section, the Secretary^* may repay (A) loans made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965; (B) loans under part D of that title, the William D. Ford Federal Direct Loan Program; (C) loans under part E; or (D) education loans from a lender that is (i) a State agency or instrumentality, (ii) a financial or credit institution, including an insurer, supervised and examined by a United States or State agency, (iii) a pension fund approved by the Secretary, or (iv) a nonprofit private entity designated and regulated by a State and approved by the Secretary. (2) Requirement. Repayment must be based on each complete year of the borrower’s service. (3) Eligibility. The Secretary may repay these loans for a person’s active-duty service as a member in an officer program or military specialty specified by the Secretary. (b) Amount. For each service year, the repayable portion is 33 1/3 percent of the loan or $1,500, whichever is greater. (c) Interest Accrual. If part of a loan is repaid for a year, interest on the remainder accrues and is paid as otherwise required. (d) Rule of Construction. This section does not authorize refunding a loan repayment. (e) Fractional Credit for Transfer. A person who during a year transfers from qualifying service under (a)(3) to service qualifying for repayment under 10 U.S.C. § 16301(a)(2) or (g) may have a portion repaid, with appropriate fractional credit for each part of the year, under the Secretary concerned’s regulations. (f) Schedule for Allocation. The Secretary must prescribe a schedule allocating funds for this section and section 16301 during a year when funds are insufficient to pay all amounts eligible under this section and section 16301(a). (g) Failure to Complete Period of Service. Except for a person described in (e) who transfers to section 16301-qualifying service, a Coast Guard member who does not complete the required service is subject to the repayment rules of 37 U.S.C. § 303a(e) or 373. (h) Authority to Issue Regulations. The Secretary may prescribe implementation procedures, including standards for qualifying loans, authorized payees, and other repayment terms. Regulations may allow a lump-sum payment of repayment due under a written agreement existing when a member dies or becomes disabled.