No. As an initial matter, the JRJ loan repayment benefits may not be paid directly to a beneficiary. Per 42 U.S.C. §3797cc-21(c), payments are to be made directly to the holder of the loan (i.e., the lending institution) for the benefit of the borrower. Furthermore, the statute specifically authorizes repayment of loan obligations, not tax obligations, of a beneficiary.
The beneficiary remains liable for their loan debt and for any late fees assessed by their lender. The JRJ Program is intended as a supplement to, not a substitute for, each beneficiary’s individual loan payments.
As of 4/3/2018
