
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2171]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                    PART III--TRAINING AND EDUCATION
 
            CHAPTER 109--EDUCATIONAL LOAN REPAYMENT PROGRAMS
 
Sec. 2171. Education loan repayment program: enlisted members on 
        active duty in specified military specialties
        
    (a)(1) Subject to the provisions of this section, the Secretary of 
Defense 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.); or
        (C) any loan made under part E of such title (20 U.S.C. 1087aa 
    et seq.).

Repayment of any such loan shall be made on the basis of each complete 
year of service performed by the borrower.
    (2) The Secretary may repay loans described in paragraph (1) in the 
case of any person for service performed on active duty as an enlisted 
member in a military specialty specified by the Secretary.
    (b) The portion or amount of a loan that may be repaid under 
subsection (a) is 33\1/3\ percent or $1,500, whichever is greater, for 
each year of service.
    (c) 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) Nothing in this section shall be construed to authorize 
refunding any repayment of a loan.
    (e) A person who transfers from service making the person eligible 
for repayment of loans under this section (as described in subsection 
(a)(2)) to service making the person eligible for repayment of loans 
under section 16301 of this title (as described in subsection (a)(2) 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) The Secretary of Defense shall, by regulation, prescribe a 
schedule for the allocation of funds made available to carry out the 
provisions of this section and section 16301 of this title 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 this 
title.

(Added Pub. L. 99-145, title VI, Sec. 671(a)(1), Nov. 8, 1985, 99 Stat. 
661; amended Pub. L. 103-337, div. A, title XVI, Sec. 1663(e), Oct. 5, 
1994, 108 Stat. 3009; Pub. L. 104-106, div. A, title X, Sec. 1079(a), 
Feb. 10, 1996, 110 Stat. 451.)

                       References in Text

    The Higher Education Act of 1965, referred to in subsec. (a)(1), is 
Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Parts B, D, and 
E of title IV of the Higher Education Act of 1965 are classified to 
parts B (Sec. 1071 et seq.), C (Sec. 1087a et seq.), and D (Sec. 1087aa 
et seq.) of subchapter IV of chapter 28 of Title 20, Education, 
respectively. For complete classification of this Act to the Code, see 
Short Title note set out under section 1001 of Title 20 and Tables.


                               Amendments

    1996--Subsec. (a)(1). Pub. L. 104-106 struck out ``or'' at end of 
subpar. (A), added subpar. (B), and redesignated former subpar. (B) as 
(C).
    1994--Pub. L. 103-337, Sec. 1663(e)(6), substituted ``Education loan 
repayment program: enlisted members on active duty in specified military 
specialties'' for ``General educational loan repayment program'' as 
section catchline.
    Subsec. (a)(1)(B). Pub. L. 103-337, Sec. 1663(e)(1), struck out 
``or'' after ``(B)''.
    Subsec. (a)(2). Pub. L. 103-337, Sec. 1663(e)(2), substituted ``case 
of any person for--
        ``(A) service performed--
            ``(i) as an enlisted member of the Selected Reserve of the 
        Ready Reserve of an armed force; and
            ``(ii) in a reserve component and military specialty 
        specified by the Secretary of Defense; or
        ``(B) service performed''
and struck out at end ``In the case of service described in clause (A) 
of the first sentence of this paragraph, the Secretary may repay a loan 
described in paragraph (1) only if the person to whom the loan was made 
performed such service after the loan was made.''
    Subsec. (b). Pub. L. 103-337, Sec. 1663(e)(3), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``The 
portion or amount of a loan that may be repaid under subsection (a) is--
        ``(1) 15 percent or $500, whichever is greater, for each year of 
    service, in the case of service described in subsection (a)(2)(A); 
    or
        ``(2) 33\1/3\ percent or $1,500, whichever is greater, for each 
    year of service, in the case of service described in subsection 
    (a)(2)(B).''
    Subsec. (e). Pub. L. 103-337, Sec. 1663(e)(4), substituted ``A 
person who transfers from service making the person eligible for 
repayment of loans under this section (as described in subsection 
(a)(2)) to service making the person eligible for repayment of loans 
under section 16301 of this title (as described in subsection (a)(2) of 
that section)'' for ``Any individual who transfers from service 
described in clause (A) or (B) of subsection (a)(2) to service described 
in the other clause of such subsection''.
    Subsec. (f). Pub. L. 103-337, Sec. 1663(e)(5), inserted ``and 
section 16301 of this title'' after ``this section'' and ``and section 
16301(a) of this title'' after ``subsection (a)''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-337 effective Dec. 1, 1994, except as 
otherwise provided, see section 1691 of Pub. L. 103-337, set out as an 
Effective Date note under section 10001 of this title.


                             Effective Date

    Section 671(b)(1) of Pub. L. 99-145 provided that: ``The authority 
provided under section 2171 of title 10, United States Code, as added by 
subsection (a), shall apply only--
        ``(A) in the case of persons who enlist or reenlist in the 
    Selected Reserve of the Ready Reserve of an Armed Force or enlist or 
    reenlist for service on active duty after September 30, 1980;
        ``(B) with respect to service performed after that date; and
        ``(C) with respect to loans made after October 1, 1975.''

                  Section Referred to in Other Sections

    This section is referred to in section 16301 of this title.
