--- kind: "section" citation: "10 U.S.C. § 2174" title: "10" title_heading: "Armed Forces" number: "2174" heading: "Interest payment program: members on active duty" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/10/2174" units: - "Subtitle A — General Military Law" - "Part III — Training and Education" - "Chapter 109 — Educational Loan Repayment Programs" --- # §2174. Interest payment program: members on active duty - (a) **Authority.—** - (1) The [Secretary concerned](/usc/10/2801.md?p=c-5) may [pay](/usc/10/101.md?p=a-15) in accordance with this section the interest and any special allowances that accrue on one or more student loans of an eligible member of the [armed forces](/usc/10/101.md?p=a-4). - (2) The [Secretary](/usc/10/4951.md?p=3) of a [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) may exercise the authority under [paragraph (1)](#a-1) only if approved by the [Secretary](/usc/10/4951.md?p=3) of Defense and subject to such requirements, conditions, and restrictions as the [Secretary](/usc/10/4951.md?p=3) of Defense may prescribe. - (b) **Eligible Members.—** A member of the [armed forces](/usc/10/101.md?p=a-4) is eligible for the benefit under [subsection (a)](#a) while the member— - (1) is serving on [active duty](/usc/10/101.md?p=d-1) in fulfillment of the member’s first enlistment in the [armed forces](/usc/10/101.md?p=a-4) or, in the case of an [officer](/usc/10/101.md?p=b-1), is serving on [active duty](/usc/10/101.md?p=d-1) and has not completed more than three years of service on [active duty](/usc/10/101.md?p=d-1); - (2) is the debtor on one or more unpaid loans described in [subsection (c)](#c); and - (3) is not in default on any such loan. - (c) **Student Loans.—** The authority to make payments under [subsection (a)](#a) may be exercised with respect to the following loans: - (1) A loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ([20 U.S.C. 1071](/usc/20/1071.md) et seq.). - (2) A loan made under part D of such title ([20 U.S.C. 1087a](/usc/20/1087a.md) et seq.). - (3) A loan made under part E of such title ([20 U.S.C. 1087aa](/usc/20/1087aa.md) et seq.). - (d) **Maximum Benefit.—** The months for which interest and any special allowance may be paid on behalf of a member of the [armed forces](/usc/10/101.md?p=a-4) under this section are any 36 consecutive months during which the member is eligible under [subsection (b)](#b). - (e) **Funds for Payments.—** Appropriations available for the [pay](/usc/10/101.md?p=a-15) and allowances of [military](/usc/10/801.md?p=8) personnel shall be available for payments under this section. - (f) **Coordination.—** - (1) The [Secretary](/usc/10/4951.md?p=3) of Defense and, with respect to the Coast Guard when it is not operating as a service in the Navy, the [Secretary](/usc/10/4951.md?p=3) of the [Department](/usc/10/101.md?p=a-6) in which the Coast Guard is operating shall consult with the [Secretary](/usc/10/4951.md?p=3) of Education regarding the administration of the authority under this section. - (2) The [Secretary concerned](/usc/10/2801.md?p=c-5) shall transfer to the [Secretary](/usc/10/4951.md?p=3) of Education the funds necessary— - (A) to [pay](/usc/10/101.md?p=a-15) interest and special allowances on student loans under this section (in accordance with sections 428(o), 455(l), and 464(j) of the Higher Education Act of 1965 ([20 U.S.C. 1078(o)](/usc/20/1078.md?p=o), 1087e(l), and 1087dd(j)); and - (B) to reimburse the [Secretary](/usc/10/4951.md?p=3) of Education for any reasonable administrative costs incurred by the [Secretary](/usc/10/4951.md?p=3) in coordinating the [program](/usc/10/2101.md?p=1) under this section with the administration of the student loan [programs](/usc/10/2101.md?p=1) under parts B, D, and E of title IV of the Higher Education Act of 1965. - (g) **Special Allowance Defined.—** In this section, the term “special allowance” means a special allowance that is payable under section 438 of the Higher Education Act of 1965 ([20 U.S.C. 1087–1](/usc/20/1087–1.md)). ## Source credit (Added Pub. L. 107–314, div. A, title VI, § 651(a)(1), Dec. 2, 2002, 116 Stat. 2578.) ## Notes ### Editorial Notes ### References in Text The Higher Education Act of 1965, referred to in subsecs. (c) and (f)(2)(B), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219. Parts B, D, and E of title IV of the Act are classified to parts B (§ 1071 et seq.), D (§ 1087a et seq.), and E (§ 1087aa et seq.), respectively, of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables. ### Statutory Notes and Related Subsidiaries ### Effective Date Pub. L. 107–314, div. A, title VI, § 651(e), Dec. 2, 2002, 116 Stat. 2581, provided that: “The amendments made by this section [enacting this section and amending sections 1078, 1087e, and 1087dd of Title 20, Education] shall apply with respect to interest, and any special allowance under section 438 of the Higher Education Act of 1965 [20 U.S.C. 1087–1], that accrue for months beginning on or after October 1, 2003, on student loans described in subsection (c) of section 2174 of title 10, United States Code (as added by subsection (a)), that were made before, on, or after such date to members of the Armed Forces who are on active duty (as defined in section 101(d) of title 10, United States Code) on or after that date.” ### Transfer of Functions For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.