If you attended college and have student debt, the U.S. Air Force has a student loan repayment program to encourage you to enlist into the U.S. Air Force. Unlike the Navy Loan Repayment Program and the Army Loan Repayment Program, which repays loans up to $65,000, the U.S. Air Force caps the amount that it will repay to $10,000.
To qualify for the program, a recruit must enlist for a minimum period of four years. The Air Force will pay the greater of 1/3 of the loan balance up to $10,000 or $1,500 after each year of service that an enlistee completes. Once the $10,000 cap has reached, one is not eligible for any other payment.
An Air Force recruit must ensure that the Air Force Loan Repayment program is outlined in their contract or else they will forfeit the benefit. The recruit can not have prior military service and must opt out of receiving post 9/11 Montgomery GI Bill benefits.
Qualifying student loans are eligible for the program and include Perkins Loans, Stafford Loans, and PLUS Loans. Unfortunately, private student loans do not qualify for the program.
While a recruit must opt out of receiving post 9/11 Montgomery GI Bill benefits during their first three years of service, if they enlist for a period of six years then they will be able to eligible to receive post 9/11 Montgomery GI Bill benefits.
The Airman must serve their entire contract period, or else they will forfeit their benefit. This means that they can not be discharged at any point during the three-year period or else the lose the benefit.
Payments are made directly to the lender and not to the Airman. In addition, taxes are paid since loan forgiveness is considered a taxable event.
It is highly recommended that if you are interested in serving your country and want to take advantage of the Air Force Loan Repayment Program that you contact your nearest Air Force recruiter. They have more information available.