R 301932Z JUN 08
MARADMIN 373/08
MSGID/GENADMIN,USMTF,2007/CMC WASHINGTON DC MRA/MPO//
SUBJ/FY09 ACTIVE COMPONENT OFFICER COLLEGE LOAN REPAYMENT PROGRAM (CLRP)//
REF/A/MSGID:DOC/SECNAV/YMD:20071212//
NARR/REF A IS SECNAV APPROVAL MEMORANDUM GRANTING THE AUTHORITY FOR THE USE OF THIS PROGRAM.//
REF/B/MSGID:DOC/U.S.C./YMD:20060106//
NARR/REF B IS TITLE 10, SECTION 2171, UNITED STATES CODE.//
POC/P. R. BONINCONTRI/CAPT/UNIT:CMC (MPO)/-/TEL:(703) 784-9386//
GENTEXT/REMARKS/1.  PURPOSE.  THIS MARADMIN ANNOUNCES THE FY09 ACTIVE COMPONENT OFFICER COLLEGE LOAN REPAYMENT PROGRAM.  CONTAINED IN THIS MESSAGE IS A NEW REPAYMENT CAP AND CLARIFICATION OF WHAT TYPES OF EDUCATION EXPENSES ARE ELIGIBLE FOR REPAYMENT.  THE NEW LOAN REPAYMENT CEILING IS CAPPED AT $30,000.  MARINES WITH LOANS OR EDUCATION EXPENSES THAT EXCEED $30,000 WILL BE RESPONSIBLE FOR REPAYING ANY REMAINING EDUCATION EXPENSES ABOVE $30,000. ADDITIONALLY, MARINES MUST DECLARE VIA A STATEMENT OF UNDERSTANDING (SEE PARAGRAPH 10B BELOW) THAT EDUCATION EXPENSES SUBMITTED FOR REPAYMENT ARE VALID EDUCATION EXPENSES PER THE GUIDANCE SET FORTH IN THIS MESSAGE.  THIS NEW POLICY IS EFFECTIVE ON ALL NEW CONTRACTS ENTERED INTO ON OR AFTER 1 AUG 08 THROUGH 30 SEP 09.
2. EFFECTIVE IMMEDIATELY, ACTIVE COMPONENT OFFICER ACCESSIONS, EXCLUDING SERVICE ACADEMY GRADUATES, WHO RECEIVE A COMMISSION AS A MARINE CORPS 2NDLT DURING THE FY09 CLRP SERVICE PERIOD (1 OCT 08 - 30 SEP 09) MAY BE AUTHORIZED REIMBURSEMENT OF QUALIFYING EDUCATION LOANS PER THE GUIDELINES SET FORTH IN THIS MESSAGE.
3.  ELIGIBILITY REQUIREMENTS:
    A.  MUST CONTRACT BETWEEN 1 AUG 08 THROUGH 30 SEP 09
    B.  SERVICE ACADEMY ACCESSIONS, USMCR OFFICER ACCESSIONS, OR SMCR MARINE OFFICER ACCESSIONS ARE NOT ELIGIBLE.
    C.  NROTC, MECEP, MCP OR ECP ACCESSIONS ARE ELIGIBLE FOR CLRP PROVIDED THEY GRADUATE BEFORE 1 OCT 2011.
    D.  PLC ACCESSIONS, SOPHOMORE AND JUNIOR YEAR ONLY, ARE ELIGIBLE PROVIDED THEY GRADUATE BEFORE 1 OCT 2011 AND WILL RECEIVE THEIR FINAL CLRP REPAYMENT INSTALLMENT PRIOR TO 1 OCT 2014.
    E.  MUST SIGN A STATEMENT OF UNDERSTANDING, EITHER PRIOR TO ATTENDING OCS OR UPON REPORTING TO TBS, THAT OBLIGATES THE MEMBER TO AN ADDITIONAL 6 MONTHS OF OBLIGATED SERVICE, THAT IS ADDED TO THE EXISTING SERVICE OBLIGATION NOT TO EXCEED 72 MONTHS (GROUND/LAW CONTRACTS ONLY) BEGINNING ON THE TBS JOIN DATE.
4.  EXECUTION:
    A.  FY09 CLRP AUTHORIZES 100% REPAYMENT OF QUALIFYING LOANS USED FOR THE PURPOSE OF PAYING EDUCATION EXPENSES NOT TO EXCEED $30,000.  APPLICANTS WHO ARE ELIGIBLE FOR THIS PROGRAM ARE AUTHORIZED REPAYMENT OF 33 1/3 PERCENT PER YEAR OF ACTIVE COMPONENT COMMISSIONED SERVICE UNTIL THE $30,000 MAXIMUM REPAYMENT IS ACHIEVED.  IF REPAYMENT OF QUALIFYING EDUCATION EXPENSES REACHES $30,000 BEFORE THE THREE YEAR PERIOD IS COMPLETED, NO FURTHER REPAYMENT WILL BE MADE.  FOR EXAMPLE, IF THE FIRST REPAYMENT IS FOR $30,000, THEN THE SECOND AND THIRD PAYMENTS ARE NO LONGER PAYABLE.
    B.  EDUCATION LOAN REPAYMENTS ARE MADE TO THE LOAN HOLDER (LENDING INSTITUTION) ON THE ANNIVERSARY DATE OF THE MEMBER'S TBS JOIN DATE.  TBS WILL ANNOTATE THE JOIN DATE AS AN ENDORSEMENT TO THE MEMBER'S STATEMENT OF UNDERSTANDING.
    C.  MEMBERS WHO RECEIVED THEIR COMMISSION DURING FY08 AND BEGIN TBS PRIOR TO 30 SEP 08 ARE CONSIDERED ELIGIBLE UNDER THE FY08 PROGRAM AND ARE NOT SUBJECT TO THE GUIDELINES SET FORTH IN THIS MARADMIN.  THE ELIGIBILITY REQUIREMENTS FOR THE FY08 PROGRAM ARE SET FORTH IN MARADMIN 038/08.
5.  REPAYMENT OF EDUCATION EXPENSES IS LIMITED TO:
    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);
    B.  ANY LOAN MADE UNDER PART D OF SUCH TITLE (THE WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM, 20 U.S.C. 1087A);
    C.  ANY LOAN MADE UNDER PART E OF SUCH TITLE (20 U.S.C. 1087AA) [20 U.S.C. 1087AA ET SEQ.]; OR
    D.  ANY LOAN INCURRED FOR EDUCATIONAL PURPOSES MADE BY A LENDER THAT IS:
        1.  AN AGENCY OR INSTRUMENTALITY OF A STATE;
        2.  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;
        3.  A PENSION FUND APPROVED BY THE SECRETARY FOR PURPOSES OF THIS SECTION; OR
        4.  A NON-PROFIT PRIVATE ENTITY DESIGNATED BY A STATE, REGULATED BY SUCH STATE, AND APPROVED BY THE SECRETARY FOR PURPOSES OF THIS SECTION.
6.  EDUCATION EXPENSES INCLUDE VARIOUS ITEMS RELATED TO HIGHER EDUCATION.  THESE EXPENSES INCLUDE TUITION, BOOKS, ROOM AND BOARD (NOT TO EXCEED THE COLLEGE DORM RATE AND A SELECTED CAFETERIA MEAL PLAN) AND ASSOCIATED COLLEGE OR UNIVERSITY FEES.
7.  EDUCATION EXPENSES DO NOT INCLUDE COSTS ASSOCIATED WITH PURCHASES OF RECREATION EQUIPMENT, TRANSPORTATION (VEHICLES), VACATION COSTS, ALCOHOL, OR ANY PURCHASE CONSIDERED NOT TO BE A VALID EDUCATION EXPENSE.
8.  MEMBERS ARE ENCOURAGED TO RETAIN ALL RECEIPTS FOR AUDIT PURPOSES.  RECEIPTS WILL NOT BE SUBMITTED WITH THE CLRP STATEMENT OF UNDERSTANDING.  IT IS THE MEMBER'S RESPONSIBILITY TO BE ACCOUNTABLE FOR ALL DECLARED EDUCATION EXPENSES. FOR CLARIFICATION, EDUCATION LOAN ACCEPTANCE OR ISSUANCE DATE MUST PROCEED THE DECLARED EDUCATION EXPENSE DATE TO BE ELIGIBLE FOR REPAYMENT.
9.  DEFERMENTS.
    A.  COMMERCIAL LENDING INSTITUTIONS. MEMBERS ELECTING TO UTILIZE THIS INCENTIVE MAY BE ELIGIBLE FOR DEFERMENT OF LOAN REPAYMENT. MEMBERS WHO ACQUIRE EDUCATION LOANS FROM OTHER THAN THE DEPARTMENT OF EDUCATION (COMMERCIAL LENDING INSTITUTION) MUST ENGAGE WITH THEIR LENDER TO DETERMINE IF DEFERMENT OF LOAN REPAYMENT IS AN OPTION. THE MARINE CORPS CAN NOT ACT ON BEHALF OF THE MEMBER IN APPLYING FOR A DEFERMENT.
    B.  DEPARTMENT OF EDUCATION LOANS.  MEMBERS WHO ACQUIRE AN EDUCATION LOAN FROM THE DEPARTMENT OF EDUCATION MAY APPLY FOR DEFERMENT.  THE MARINE CORPS CAN NOT ACT ON BEHALF OF THE MEMBER IN DETERMINING IF A DEFERMENT IS AVAILABLE.  MEMBERS WITH DEPARTMENT OF EDUCATION LOANS WILL UTILIZE THE BELOW GUIDANCE:
        (1) A DEFERMENT IS AUTHORIZED BY SECTION 1087EE OF TITLE 20  UNITED STATES CODE.  DEFERMENT OPTIONS ARE BETWEEN THE MEMBER AND THE DEPARTMENT OF EDUCATION.
        (2) THE DEPARTMENT OF EDUCATION REQUIRES DOCUMENTATION FOR A DEFERMENT.  THIS DOCUMENTATION INCLUDES A COPY OF MILITARY ORDERS OR A WRITTEN STATEMENT FROM THE COMMANDING OFFICER OR PERSONNEL OFFICER VERIFYING THAT YOU ARE ON ACTIVE DUTY UNDER CIRCUMSTANCES OUTLINED IN PARAGRAPH 9.B(3) BELOW.
        (3) THE DEFERMENT MAY NOT EXCEED THREE YEARS AND IS AVAILABLE ONLY FOR PERIODS WHEN THE BORROWER IS SERVING ON ACTIVE DUTY DURING A WAR OR OTHER MILITARY OPERATION, OR NATIONAL EMERGENCY.  THE INFORMATION ON DEFERMENT OPTIONS IS AVAILABLE AT WWW.ED.GOV. 
    C.  ACCESSIONS MUST CONTINUE MAKING PAYMENTS ON STUDENT LOANS UNTIL THEY HAVE BEEN NOTIFIED BY THE DEPARTMENT OF EDUCATION THAT THE REQUEST FOR DEFERMENT HAS BEEN GRANTED.  FAILURE TO MAKE PAYMENT WILL PLACE THE STUDENT LOAN IN A DELINQUENT STATUS AND RESULT IN DEFAULT OF THE LOAN.  PAYMENTS MADE DURING A PERIOD THAT IS NOW CONSIDERED TO HAVE BEEN COVERED BY A MILITARY DEFERMENT CANNOT BE REFUNDED TO THE MEMBER.
10. PAYMENT AUTHORIZATION REQUIREMENTS:
    A.  MEMBERS MUST SIGN A WRITTEN AGREEMENT.  THE AGREEMENT WILL BE COMPLETED SIMILARLY TO A STATEMENT OF UNDERSTANDING PER MCO 7220.24M AND WILL BE ATTACHED TO THE ACCESSION AGREEMENT FOR RETENTION IN THE OFFICER QUALIFICATION RECORD (OQR).  UPON REPORTING TO TBS, OFFICERS WHO QUALIFY FOR THIS PROGRAM MAY ENTER INTO THIS AGREEMENT AND EXTEND THEIR CURRENT CONTRACT BY 6 MONTHS TO MEET THE MINIMUM SERVICE OBLIGATION ELIGIBILITY REQUIREMENT.  MMOA AND TBS ARE AUTHORIZED TO MAKE CHANGES TO THE MEMBER'S EAS.  IF EAS CHANGES ARE REQUIRED AFTER GRADUATING TBS, SERVICING ADMINISTRATION CENTERS WILL FORWARD REQUESTS AND JUSTIFICATIONS TO MMOA-3.
    B.  THE FOLLOWING STATEMENT OF UNDERSTANDING SHALL BE UTILIZED:
I UNDERSTAND THAT INCIDENT TO MY COMMISSION AS A MARINE CORPS SECOND LIEUTENANT, THAT I INCUR AN ADDITIONAL SERVICE OBLIGATION OF 6 MONTHS TO BE ADDED TO MY EXISTING SERVICE OBLIGATION NOT TO EXCEED 72 MONTHS (GROUND/LAW CONTRACTS ONLY).  I UNDERSTAND THAT THIS SERVICE OBLIGATION BEGINS WHEN I REPORT TO THE BASIC SCHOOL (TBS) FOR DUTY.  I UNDERSTAND THAT UPON SIGNATURE OF THIS AGREEMENT, AND COMPLETION OF THE LETTER TO LOAN HOLDER FORM, I AM ELIGIBLE FOR 100% REPAYMENT OF QUALIFYING EDUCATION LOANS USED FOR THE PURPOSE OF PAYING EDUCATION EXPENSES NOT TO EXCEED $30,000.  I UNDERSTAND THAT REPAYMENT WILL BE MADE AT A RATE OF 33 1/3 PERCENT PER YEAR OF ACTIVE COMPONENT COMMISSIONED SERVICE UNTIL THE $30,000 MAXIMUM REPAYMENT IS ACHIEVED.  IF REPAYMENT OF QUALIFYING EDUCATION EXPENSES REACHES $30,000 BEFORE THE THREE YEAR PERIOD IS COMPLETED, NO FURTHER REPAYMENT WILL BE MADE. IUNDERSTAND THAT LOANS OBTAINED AFTER MY COMMISSIONING DATE ARE NOT ELIGIBLE FOR REPAYMENT.  I UNDERSTAND THAT MY REPAYMENT ANNIVERSARY DATE IS THE JOIN DATE THAT I BEGIN THE BASIC SCHOOL.  I FURTHER UNDERSTAND THAT I MUST CONTINUE MAKING PAYMENTS ON MY STUDENT LOANS UNTIL I HAVE BEEN NOTIFIED BY THE DEPARTMENT OF EDUCATION THAT A REQUEST FOR DEFERMENT HAS BEEN GRANTED.  FAILURE TO MAKE PAYMENT WILL PLACE MY STUDENT LOAN IN A DELINQUENT STATUS AND MAY RESULT IN DEFAULT OF THE LOAN.  I CERTIFY THAT MY STATED EDUCATION EXPENSES MEET THE CRITERIA SET FORTH IN THE PROGRAM GUIDANCE AND THERE ARE NO OTHER COSTS REPRESENTED IN THE DECLARED REPAYMENT AMOUNT.  I UNDERSTAND THAT ENTERING INTO A CLRP AGREEMENT, UPON COMMISSIONING, THAT I AM SUBJECT TO THE UNIFORM CODE OF MILITARY JUSTICE (UCMJ).  I UNDERSTAND THAT REPAYMENT OF UNAUTHORIZED EDUCATIONAL EXPENSES CONSTITUTES A FALSE OFFICIAL STATEMENT AND IS SUBJECT TO PUNISHMENT PER ARTICLE 107 OF THE UCMJ.
    C.  THE OSO/OCS/MOI (IF MEMBER DID NOT COME THROUGH OSO) WILL  PREPARE CLRP AGREEMENT AND LETTER TO LOAN HOLDER.  CLRP AGREEMENTS MUST BE SIGNED BY THE MEMBER AND THE COMMANDING OFFICER OR DESIGNEE. THE LETTER TO LOAN HOLDER FORM WILL BE COMPLETED ALONG WITH THE CLRP AGREEMENT AND WILL ACCOMPANY THE MEMBER'S PAPERWORK TO TBS. THE SERVICING PERSONNEL ADMINISTRATIVE CENTER WILL FORWARD DOCUMENTS TO FINANCIAL INSTITUTIONS AS REQUIRED.  THE COMMANDING OFFICER OR DESIGNEE WILL NOTIFY DC M&RA (MMOA) WHEN AN OFFICER'S EXPIRATION OF ACTIVE SERVICE IS EXTENDED AS A RESULT OF THIS PROGRAM.  THE NOTIFICATION METHOD MAY BE CONSOLIDATED AS REQUIRED.
    D.  FAILURE TO COMPLETE THE CONTRACTED PERIOD OF OBLIGATED SERVICE DUE TO MISCONDUCT WILL RESULT IN NON-PAYMENT OF CLRP FOR THE YEAR THE OFFICER IS DISCHARGED AND CANCELS THE CLRP AGREEMENT. RECOUPMENT OF PRIOR PAYMENTS IS NOT REQUIRED.
11.  REPAYMENT OF QUALIFYING EDUCATION LOANS.  CURRENTLY, THE MARINE CORPS PAYS UP TO $30,000 OF QUALIFYING EDUCATION LOANS FOR FY09 CLRP PARTICIPANTS.  LOANS OBTAINED AFTER THE COMMISSIONING DATE ARE NOT ELIGIBLE FOR REPAYMENT.
    A.  MEMBERS MUST ENGAGE WITH THEIR SERVICING PERSONNEL ADMINISTRATION CENTER ON THE ANNIVERSARY DATE OF THEIR TBS START DATE TO PROCESS THEIR COLLEGE LOAN REPAYMENT.  SERVICING PERSONNEL ADMINISTRATION CENTERS WILL ENSURE THAT THE CLRP AGREEMENT IS CITED IN THE MEMBER'S OQR PAGE 11.  IF THE AGREEMENT IS NOT REFERENCED IN THE PAGE 11, INSERT A COMMENT REFLECTING THE SERVICE OBLIGATION REQUIREMENT AND THE ASSOCIATED CLRP AGREEMENT.
    B.  EACH MEMBER WILL FILL OUT A LETTER TO LOAN HOLDER FORM.  ADMINISTRATORS CAN FIND THE LETTER TO LOAN HOLDER FORM ON THE MANPOWER MILITARY POLICY (MPO) WEBSITE AT: HTTPS:(SLASH SLASH).WWW.MANPOWER.USMC.MIL/PORTAL /PAGE?_PAGEID=278,2542569,278_2550292:278_2683675&_DAD=PORTAL &_SCHEMA=PORTAL.  TBS WILL ENSURE THE LETTER TO LOAN HOLDER IS FORWARDED TO THE PARTICIPANT'S LOAN INSTITUTION(S) FOR COMPLETION OF SECTION II.  ADDITIONALLY, THERE IS AN UPDATED STATEMENT OF UNDERSTANDING THAT WILL ACCOMPANY THE COMPLETE CLRP AGREEMENT  AND LETTER TO LOAN HOLDER FOR RECORDING PURPOSES WITH MMSB.
12. ADMINISTRATIVE.  UPON RETURN OF THE LETTER TO LOAN HOLDER FROM THE LENDING INSTITUTION(S), TBS WILL FORWARD THE CLRP PACKAGE CONTAINING THE CLRP AGREEMENT, LETTER TO LOAN HOLDER, DD FORM 1966/3, AND NAVMC 321A TO DFASCLEVELAND, USMC RECORDS SERVICES DIVISION, ROOM 2583 ATTN:  (CODE-JFLAFD-COLLEGE LOAN), 1240 EAST NINTH STREET, CLEVELAND, OH 44199-2055 FOR DISBURSEMENT TO LOAN HOLDER.  SCANNED PACKAGES MAY BE SENT TO DFAS-CL AT:  CCL-MC-BONUS@DFAS.MIL. FOR QUESTIONS CONCERNING PAYMENT PROCEDURES, PLEASE CONTACT DFAS CLEVELAND, PAYROLL SERVICES/TSP AT:  DSN 580-5641 OR COMM (216) 522-5641.  PARTICIPANTS ARE REMINDED THAT STUDENT LOAN INCENTIVES ARE TAXABLE FOR FITW AND SITW IN THE YEAR THAT THE PAYMENT IS MADE.
13. TBS WILL PROVIDE A REPORT TO MCRC, OFFICER PROGRAMS, IDENTIFYING THE NAME AND DATE THE MEMBER ACCEPTED THE CONDITIONS TO BE ELIGIBLE FOR CLRP.  THIS REPORT WILL BE PUBLISHED TO MCRC AT THE START OF EVERY CONVENING TBS COMPANY.
14. THIS MESSAGE IS NOT APPLICABLE TO THE MARINE CORPS RESERVE.
15. RELEASE AUTHORIZED BY MR. M. F. APPLEGATE, DIRECTOR, MANPOWER PLANS AND POLICY DIVISION.//