Student Loan Repayment Program

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Authoritative Sources:

Department of Defense 7000.14-R, Vol. 7A, Chapter 2 Department of Defense 7000.14-R, Vol. 12, Chapter 15 Department of Defense 7000.14-R, Vol. 7A, Chapter 44

JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 Internal Revenue Service, Code 3402

Internal Revenue Service, Code 3403 USC, Title 10, Chapter 109

USC, Title 10, Chapter 31 USC, Title 10, Chapter 1609

Internal Revenue Service, Code 3101 Internal Revenue Service, Code 3111

Business Process Standards:

A business process standard was not directed by law or DoD policy.

Business Rule Standards:

Student_Loan_Repayment_Program_39_013_01

To support auditability, the military payroll system shall maintain a pay history by pay period showing Student Loan Repayment Program payroll computation factors and results as follows:

1. Recipient Account Number - Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person’s Federal wage, salary, allotments and garnishments.

2. Recipient Account Type - The specific type of account (i.e., checking or savings) the military member holds with a financial institution designated for electronic funds transfer (EFT)

3. Recipient Identification Code - Short Code used in transaction processing to derive the recipients

information such as name, address, Routing Transit Number, account number, account type, account format, point of contact, etc. A Recipient ID Code could be a financial institution, government agency,

non-government agency, commercial agency, Line of Accounting, State Child Support Agency, court, etc. 4. Recipient Name - The "full name" of the person, financial organization, government agency,

non-government agency, commercial activity, court, Child Support Agency, etc., who monies are paid to (The "Paid To" line)

5. Recipient Payment Method - Used to identify the disbursing payment method for Net Pay, allotments, deductions, debts, garnishments and taxes

a. Individual Check Payments b. Individual EFT Payments c. Blanket Check Payments d. Blanket EFT Payments

e. Corporate Trade Exchange 820 f. Corporate Trade Exchange g. No check/voucher for transfer

h. Intra-governmental Payment and Collection (IPAC)

6. Recipient Routing Transit Number - Financial Institution Routing Transit Number is a unique nine-digit code, identifying the financial institution, designated for electronic funds transfer (EFT) of a person’s Federal

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wage, salary, or retirement payments.

7. Student Loan Repayment Program Amount - The total amount of a bonus authorized for payment to the military member for a specific contract period

8. Student Loan Repayment Program Contract Begin Date - The first day for which the military member's contract is effective and establishes the date member is authorized

9. Student Loan Repayment Program Contract End Date - The last day for which the military member's contract is effective and establishes the date member is no longer authorized

10. Student Loan Repayment Program Installment Payment Amount - The predetermined amount authorized or paid to a military member as a one-time payment on a monthly, quarterly, semi-annual or annual payment schedule.

11. Student Loan Repayment Program Installment Payment Date - The date a predetermined installment amount is authorized or paid to a military member based on a monthly, quarterly, semi-annual or annual payment schedule.

12. Student Loan Repayment Program Loan Amount - The member's actual Student Loan Amount used to determine the Student Loan Repayment amount authorized for repayment

13. Student Loan Repayment Program Paid-to-Date Amount - The total amount of all installment payments paid to the military member for a specific contract period

References:

Department of Defense 7000.14-R, Vol. 12, Chapter 15

JFMIP SR-99-5 Human Resources & Payroll Systems Requirements, Chapter 14 USC, Title 10, Chapter 109

CHRIS:

Civilian Employment Organization Name Financial Institution Depositor Account Number Financial Institution Depositor Account Type Financial Institution Name

Financial Institution Routing Transit Number Military Unit Name

Organization Name

Person Contractual Agreement Duration Person Contractual Agreement Effective Date Person Contractual Agreement Payment Amount Person Contractual Agreement Termination Date Person Full Legal Name

The military payroll system shall deduct Federal Tax, State Tax and FICA Tax from the Student Loan Repayment Program Installment Payment Amount (see Combat Zone Tax Exclusion business rules for exceptions)

References:

Department of Defense 7000.14-R, Vol. 7A, Chapter 44 Internal Revenue Service, Code 3101

Internal Revenue Service, Code 3111 Internal Revenue Service, Code 3402 Internal Revenue Service, Code 3403

To support payroll computation, the military payroll system shall maintain a Student Loan Repayment Program rate table as follows:

1. Student Loan Repayment Program Maximum Annual Rate - The maximum student loan payment amount paid to bank or loan holder for one calendar year period.

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2. Student Loan Repayment Program Maximum Rate - The daily, monthly or annual rate for a specific earning. The rate is used to compute the amount payable for the pay period based on eligibility dates, contract dates, tour pay type, duty status and the number of days in the pay period.

3. Student Loan Repayment Program Minimum Annual Rate - The minimum student loan payment amount paid to bank or loan holder for one calendar year period.

4. Student Loan Repayment Program Rate Begin Date - The first day the daily, monthly or annual rate for a specific earnings if effective or authorized. The begin date changes based on legislation and annual pay raises, and is used to determine the rate of pay used when computing the amount payable for current month and retroactive pay changes.

5. Student Loan Repayment Program Rate End Date - The last day the daily, monthly or annual rate for a specific earnings if effective or authorized. The end date changes based on legislation and annual pay raises, and is used to determine the rate of pay used when computing the amount payable for current month and retroactive pay changes.

References:

Department of Defense 7000.14-R, Vol. 12, Chapter 15 USC, Title 10, Chapter 109

CHRIS:

DoD Military Pay Entitlement Rate Start Date DoD Military Pay Entitlement Rate Stop Date DoD Military Pay Entitlement Rate Type

The military payroll system shall support future Student Loan Repayment Program payments and Student Loan Repayment Program recoupment when a member fails to fulfill the service conditions for the Student Loan Repayment Program. The Secretary of the Military Department concerned will establish procedures and disposition on a case-by-case and include (1) stopping future installments, (2) recoupment or (3) full

payment. See Core - Payroll Calculation business rules.

References:

Department of Defense 7000.14-R, Vol. 7A, Chapter 2

The military payroll system shall determine the Student Loan Repayment Amount based on: 1. Member’s Student Loan Repayment Contract Begin Date

2. Student Loan Repayment Program Maximum Rate 3. Student Loan Repayment Rate Begin Date

4. Compare result to the Student Loan Repayment Program Loan Amount 5. The lesser amount is the Student Loan Repayment Amount

References:

To support Student Loan Repayment Program payments, the military payroll system shall base the following on positive input:

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1. Student Loan Repayment Program Installment Payment Amount(s) 2. Student Loan Repayment Program Payment Date(s)

References:

The military payroll system shall ensure the Student Loan Repayment Program Installment Payment Amount: 1. Is not greater than the Student Loan Repayment Program Maximum Annual Rate

2. Is not less than the Student Loan Repayment Program Minimal Annual Rate

3. Exception: A lesser amount can be paid if the final Student Loan Repayment Program Installment Payment Amount is less than the remaining Student Loan Amount balance authorized for payment. For example, if the remain balance for the Student Loan Repayment Program is $300, and the is Student Loan Replacement Program Minimal Annual Rate is $500, the system shall pay the lesser amount.

References:

The military payroll system shall derive the Student Loan Repayment Program Paid-to-Date Amount based on the total of all Student Loan Repayment Program Installment Payment Amount(s) paid to the military member for a specific contract

References:

The military payroll system shall make the Student Loan Repayment Program Installment Payment Amounts directly to the bank or loan holder and not the military member

References:

Appendix A: Common Human Resource Information Standards

Civilian Employment Organization Name

Civilian Employment Organization Name is the title of a civilian organization that employs a DoD Military Service member.

DoD Military Pay Entitlement Rate Start Date

DoD Military Pay Entitlement Rate Start Date is the calendar date on which a DoD military pay entitlement rate type begins.

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DoD Military Pay Entitlement Rate Stop Date is the calendar date on which a DoD military pay entitlement rate type ends.

DoD Military Pay Entitlement Rate Type

DoD Military Pay Entitlement Rate Type is the classification of a DoD military pay entitlement rate.

Financial Institution Depositor Account Number

Financial Institution Depositor Account Number is the identification number of a specific account, assigned by a financial institution, designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments.

Financial Institution Depositor Account Type

Financial Institution Depositor Account Type is the specific type of account a person holds with a financial institution designated for electronic funds transfer (EFT) of his/her federal wage, salary, or retirement payments.

Financial Institution Name

Financial Institution Name is the name of a bank, savings association, or credit union designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments.

Financial Institution Routing Transit Number

Financial Institution Routing Transit Number is a unique nine-digit code, identifying the financial

institution, designated for electronic funds transfer (EFT) of a person's federal wage, salary, or retirement payments.

Military Unit Name

Military Unit Name is the title given to a unit within a DoD Military Service's force structure.

Organization Name

Organization Name is the full name of an organization within the DoD global force structure and/or a public or private organizational entity of interest to the DoD.

Person Contractual Agreement Duration

Person Contractual Agreement Duration is the period of time, expressed in years, months, weeks, and/or days (e.g., twelve years, seven months, twenty two days), over which a contractual agreement is in effect.

Person Contractual Agreement Effective Date

Person Contractual Agreement Effective Date is the calendar date on which a contractual agreement becomes effective.

Person Contractual Agreement Payment Amount

Person Contractual Agreement Payment Amount is the total dollar amount of the monetary agreement to be provided to the person signing the contractual agreement by the United States government.

Person Contractual Agreement Termination Date

Person Contractual Agreement Termination Date is the calendar date on which a contractual agreement is terminated.

Person Full Legal Name

Person Full Legal Name is an official label given to a person that is found on the birth certificate, marriage license, adoption decree or similar government issued document.