Supplemental Instructions For Completing Irs Form W-4: Fill & Download for Free

Yes, the various branches of the military offer loan repayment programs as an enlistment incentive for college loans incurred prior to entering military service.To be eligible when entering active duty service you must:● Not have served in the military previously.● Have received a high school diploma● Not be an officer● Provide written confirmtion you are not enrolling in the Montgomery GI Bill.● Obtain a guarantee of loan repayment in your enlistment contract.If you have prior military service and are entering the reserves you can still qualify for the program and retain eligibility for the Montgomery GI Bill.The following loan types qualify for repayment:● Direct Subsidized (Stafford/Ford)● Direct Unsubsidized (Stafford/Ford)● Perkins Loans● Supplemental Loans for StudentsFederal Direct Consolidation Loans and Parent Plus Direct Loans used to pay for a soldier’s educational expenses also qualify. Private loans are not eligible for forgiveness through the program. To be eligible for repayment a loan cannot be in default.Payments through the program are made directly to your lenders when you have fully completed a year of service and have not exceeded the maximum benefit offered by your branch. The payment for active duty personnel is 33 1/3 percent of the outstanding principal balance of the loan or $1,500, whichever is greater.The payment for Army and Navy reserves is 15 percent of the outstanding principal balance of the loan, or $1,500, whichever is greater. The payment for the Air National Guard is 15 percent of the outstanding principal balance, or $5,000, whichever is greater. Currently accrued interest on loans is not covered by the program.These payments are considered taxable and subjected to a 28% withholding rate. So 28% of your payment amount is sent directly to the IRS. A W‐2 statement reflecting program payments is provided to participants in the program to be included in their income tax filings for the year.To receive payment you must complete Form DD2475 on an annual basis to confirm you have successfully fulfilled all of the requirements needed for repayment assistance. You will want to have your loan information handy when completing the form to ensure payment is made to the correct loan holder(s) for your eligible loan(s).Payments and program qualifications differ based on type and branch of service you enlist in.The differences are detailed below.ArmyThe Army's Loan Repayment Program is specifically targeted for highly qualified applicants. Accepted applicants entering active duty service are eligible for up to $65,000 of loan repayment.To be eligible when entering active duty service you must:● Enlist for a minimum of three years● Have an Armed Forces Qualification Test score above 50● Enlist in a critical military occupational specialty. These change frequently based on current staffing requirements. Your recruiter should be able to provide an up to date list.If you are entering the Army Reserves or National Guard you are eligible for up to $20,000 of repayment assistance when enlisting in a critical military occupational specialty. With payment preference given to military occupational specialties with the highest staffing requirements. The minimum enlistment required to be eligible for the program is 6 years.NavyAll servicemen and women entering active duty service are eligible for up to $65,000 of loan repayment through the Navy's Loan Repayment Program. To be eligible you must enlist for a minimum of 4 years.If you are entering the Navy Reserves you are eligible for up to $10,000 of repayment assistance and must enlist for a minimum of 6 years.Air ForceAll servicemen and women entering active duty service are eligible for up to $10,000 of loan repayment through the Air Force's Loan Repayment Program. To be eligible you must enlist for a minimum of 4 years.If you are entering the Air National Guard you qualify for up to $20,000 of repayment assistance when enlisting in a critical military occupational specialty. Payment preference is given to military occupational specialties with the highest staffing requirements. The minimum enlistment required to be eligible for the program is 6 years.Health ProfessionalsIf you are a health professional, the Military also sponsors an Active Duty Health Professions Loan Repayment Program. To aid in recruiting commissioned officers to active duty in the Medical Corps, Nurse Corps, and Biomedical Sciences Corps. Participants receive repayment of loans taken out while earning degrees from accredited medical education institutions.To qualify you must have graduated with an advanced degree in one of the following specialties:● Medicine● Dentistry● Optometry● Veterinary● Nursing● Clinical psychologyIn addition to principal repayment, interest and reasonable educational and living expenses are also eligible for repayment through the program. The maximum repayment through the program is $120,000 total and $40,000 annually. The benefits are considered taxable and tax payments are delivered directly to the IRS. So practically speaking you can expect approximately $30,000 of repayment to be applied to your loan balances annually.Participants in the program are required to serve on active duty for a minimum of two years or one year of active duty for each annual repayment, whichever is greater. You are still eligible for the program even if you have participated in the Military’s Health Professions Scholarship Program previously.To receive your initial repayment through the program you will need to submit DA form 1059 along with your certificate of completion for the Basic Officers Leaders Course. Plan to include copies of your current loan statement since payments through the program are made directly to your lender.ResourcesForm DD2475 - http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2475.pdfInstructions on completing form DD2475 -http://www.iupui.edu/~armyrotc/assets/downloads/Instructions_DDForm_2475.pdfDA Form 1059 ╾ http://p://www.cs.amedd.army.mil/FileDownloadpublic.aspx?docid=64a844f9‐03d5‐4a04‐85e0‐ca729092519d*****Check out my slideshare Escape Student Loan Debt: How to Minimize Your Re-payments for more strategies you can employ to eliminate student loan debt.