Us Code § 2772 - Education loan repayment program for members on active duty in specified military specialties

Full text of Us Code United States Code § 2772 — Education loan repayment program for members on active duty in specified military specialties, with citation guidance and answers to common questions.

§ 2772. Education loan repayment program for members on active duty in specified military specialties

(a) In General.—

(1) Repayment.—Subject to the provisions of this section, the Secretary 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.);

(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.);

(C) any loan made under part E of such title (20 U.S.C. 1087aa et seq.); or

(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 nonprofit private entity designated by a State, regulated by such State, and approved by the Secretary for purposes of this section.


(2) Requirement.—Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower.

(3) Eligibility.—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.


(b) Amount.—The portion or amount of a loan that may be repaid under subsection (a) is 331/3 percent or $1,500, whichever is greater, for each year of service.

(c) Interest Accrual.—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) Rule of Construction.—Nothing in this section shall be construed to authorize refunding any repayment of a loan.

(e) Fractional Credit for Transfer.—An individual who transfers from service making the individual eligible for repayment of loans under this section (as described in subsection (a)(3)) to service making the individual eligible for repayment of loans under section 16301 of title 10 (as described in subsection (a)(2) or (g) 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.

(f) Schedule for Allocation.—The Secretary shall prescribe a schedule for the allocation of funds made available to carry out the provisions of this section and section 16301 of title 10 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 title 10.

(g) Failure to Complete Period of Service.—Except an individual described in subsection (e) who transfers to service making the individual eligible for repayment of loans under section 16301 of title 10, a member of the Coast Guard 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.

(h) Authority to Issue Regulations.—The Secretary may prescribe 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.

(Added Pub. L. 108–293, title II, §218(a), Aug. 9, 2004, 118 Stat. 1038, §472; renumbered §2772, Pub. L. 115–282, title I, §116(b), Dec. 4, 2018, 132 Stat. 4226; amended Pub. L. 116–283, div. G, title LVXXXV [LXXXV], §8505(a)(41), Jan. 1, 2021, 134 Stat. 4750; Pub. L. 117–263, div. K, title CXII, §11239(a), Dec. 23, 2022, 136 Stat. 4037.)


Editorial Notes

References in Text

The Higher Education Act of 1965, referred to in subsec. (a)(1)(A) to (C), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Parts B, D, and E of title IV of the Act are classified generally 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.

Amendments

2022—Pub. L. 117–263 amended section generally. Prior to amendment, section related to education loan repayment program.

2021—Subsec. (a)(2). Pub. L. 116–283 substituted "individual" for "person".

2018—Pub. L. 115–282 renumbered section 472 of this title as this section.

About This Section

14 U.S.C. § 2772 is part of Title 14 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.

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Section 2772 ("Education loan repayment program for members on active duty in specified military specialties") is part of the United States Code, the codified statutory law of Us Code. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

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