One of the recruiting tools used to recruit lawyers in the Air Force is the Judge Advocate General (JAG) Corps Loan Repayment Program. In order to qualify for the program, the candidate is expected to meet the requirements to be a JAG Corps officer. Generally, this means that the candidate holds a Juris Doctor (JD) degree and can practice law in one of the 50 states or territories. The candidate can not have previously separated or transferred from active duty as a JAG Corps officer and can not be eligible for continuation pay or other bonuses during the loan repayment program.
The program is similar to the Navy Loan Repayment Program and the Army Loan Repayment Program in that the maximum amount of student loans to be repaid is capped at $65,000. The difference among the programs is that the Navy Loan Repayment Program and the Army Loan Repayment Program are enlistment programs, while the JAG Corps Loan Repayment Program is an officer program designed to recruit more lawyers.
Another similarity to the other programs, is that the first loan payment is made after the officer has served for one year. The second payment is made after the officer has served for two years and the third payment is made after three years have been served.
The biggest difference is that the JAG candidate must be serving for a period of four years whereas under the Navy Loan Repayment Program and the Army Loan Repayment Program the enlistment period is three years. A JAG Corps officer that separates prior their initial four-year commitment is ineligible to partake in the JAG Corps Loan Repayment Program.
The JAG Corps Loan Repayment Program requires that the loan be federally guaranteed under part B, part D and part E of the Higher Education Act of 1965. The loan is also eligible if: it is incurred for educational purposes made by a lender that is either an agency or instrumentality of a State; a financial or credit institution that is subject to examination and supervision by an agency of the United States; pension fund approved by the Under Secretary of Defense for Personnel and Readiness; or a non-profit private entity designated by a State that is regulated by such State, and approved by the Under Secretary of Defense for Personnel and Readiness.
The loan must be an existing loan and only the Judge Advocate’s loans can be used in the program. The Judge Advocate can not consolidate loans with his or her spouse or another person and incorporate them into the program.
The loans must be in good standing and the Judge Advocate must continue to make payments on the loans. If that is not an option, then the Judge Advocate may forbear or defer payments until the first payment is made.
The program is similar to the Navy and Army Loan Repayment Programs, in that the payments will be the greater of 1/3 of a the principal up to $65,000 or $1,500. The loan payments are made directly to the lender and not the Judge Advocate. Federal and state taxes are paid as a repayment on a loan is considered taxable income.
I personally think this is a great program for law school students that have passed the bar exam and have a significant amount of college debt. It not only gives students the ability to meet their financial obligations, but it also gives them an opportunity to serve in the Armed Forces. I would highly recommend that a law school student speak directly with an Air Force Officer recruiter to learn more about the program.