Education/Student Loan questions (SCRA, repayment)

[Guest CrazyErnie]

I've done the search, but no real solid answers.

Are officers in the Guard given student loan repayment benefit?

-Thanks

[Guest 130Nav]

I was given the student repayment as part of a re-enlistment package while I was enlisted. They fail to tell you that they only make payments once a year on your anniversary date. So they made two payments and then I got my commission.

After commissioning I was told that officers are not eligible for this program and no further payments were made.

[Guest Slye]

But the SCRA allows you to get a military defferment and a 6% interest rate cap. Better than nothing, especially if you have private loans.

[Guest gapilot21]

I am a recent graduate and have accummulated substantial loans through flight training. I understand the Guard or Reserve has a program to reimburse loans made for education. How much will it reimburse and will loans for flight training be elgible for the reimbursement? I was planning to apply for a officer position but if I get my loans paid off I would apply for an enlistment. Any info someone could provide is helpful. I am particularly interested in the Atlanta, Macon or Montgomery AL areas.

Thanks

[Guest Cattelan]

To my knowledge, every State is different, I'm in a WI guard unit and the loan reimbursement is only for certain jobs. I have it with my AFSC as a Ground Radio Tech and they pay $500 per loan per year for up to 5 different loans. So a total of $2500 a year up to $20,000 total for your enlistment. This isn't much if you have a lot in loans.

Now I just got a pilot slot with another unit in WI, so I'm not sure if my loan program is going to carry over, but I don't have much taken out to begin with. I'm not sure how other states work, but I wouldn't apply for an enlisted posistion just for a loan repayment program, espcially if you desire to be a pilot. Hope this helps

[Guest gapilot21]

Thanks FB. If that is the way it works then that would barely pay the interest on 20 grand. I think I will wait for a pilot slot. Gotta take the AFOQT test soon. I am only 22 but I need to get start now. I have PPL, started on instrument and had good grades in college. Do you recomment joining first to help get a slot later on?

[Guest Robes]

If you are joining a unit for the sole purpose of getting a pilot slot then I would say no, there are plenty of heartbreaks when you go in with that attitude. However, if you know that X unit is the unit you want to serve with and be a part of for the next 6+ years regardless of if you are a pilot or not then yes, enlist.

Robes

[Guest ShortThrow]

Well, looks like I'm going to have to bite the bullet and take out some student loans for this summer and next year's tuition and everything.

Now I know this isn't the greatest place for info but before I go into school to talk to a specialist I'd like to hear what you guys have to say.

Things you should know:

1. My school is EXPENSIVE

2. I'm planning on holding off on the payments until after graduation.

My questions are:

1. Will they generally include with the loan money for rent even if I'm living off campus? My school lists tuition as xx,### per year including housing so could I get a loan for all of that even if I'm living a block or two away?

Any info or advice you can offer up is appreciated.

Thanks.

[Guest mghodgson]

1. Yes, the amount you qualify for generally includes tuition, fees, books, and living expenses. You will tell them in your app where you are going to school, so they know how expensive it is and what it costs the average student to go there.

2. They don't care where you live; they know it will cost you money either way. It depends on the school, but most get the loan check, take out what they need for tuition, etc. and give you a check for the rest. What you do with it from there is up to you.

3. You do not have to begin making payments on your student loans until six months after you graduate.

4. As soon as you have your tax info for your 2006 tax return, fill out the FAFSA online (fafsa.ed.gov). This summer is part of the 2006-2007 school year, so you will need to fill out the form for that year, then you can update it for next school year. The priority deadline for applying for the 2007-2008 year is March 1, so the sooner you can get going on this the better.

5. If your parents are still claiming you on their tax return, you will run into problems. You need to be completely independent of them (in the eyes of the government) to get the money you will need.

[Toasty]

If you're still looking for which place to take loans out from, I have two loans from MyGreatLakes.com and Nelnet.com.

Payments, as said above, didn't start until 6 months after graduation. For me, it was enough time to get settled at my first base and collect a couple paychecks before the loans came in. Hope you don't get stuck on the 180-day wait for AD.

[Techsan]

Tertle,

Just be careful on how much of a loan you take. I took a little too much while I was in school, and am now wishing I hadn't. My wife (girlfriend then) also had student loans, so now I have to pay for 2 loans! The loan payments per month aren't bad at all, but then you are paying on them for what seems like an entire lifetime.

Nelnet.net is a good place to borrow from. Like all the others, you get discounts for having the payments made via automatic draft. I always hate sending in a stupid check every month for bills.

[Guest ShortThrow]

Originally posted by C21Cowboy:

Tertle,

Just be careful on how much of a loan you take. I took a little too much while I was in school, and am now wishing I hadn't. My wife (girlfriend then) also had student loans, so now I have to pay for 2 loans! The loan payments per month aren't bad at all, but then you are paying on them for what seems like an entire lifetime.

Nelnet.net is a good place to borrow from. Like all the others, you get discounts for having the payments made via automatic draft. I always hate sending in a stupid check every month for bills.

Can you explain how or why you took to much and why now you wish you hadn't? Besides the higher payments obviously?

[Techsan]

I took out money so that I would have to work as much during school, and hopefully make better grades. It all worked out fine, but I just wished that maybe I would of worked more so that I won't be paying on the loans until I'm in my 40's.

The monthly payments don't hurt at all, just the fact that you're paying interest on the loan for so long.

[Guest ShortThrow]

Has anyone taken out one of those low interest loans that one of the AF affiliates offers at like 2% and put it towards your student loans just so that there interest is less?

[osulax05]

If you consolidate your student loans you should be able to get down close to the 2% or whatever it is that USAA offers.

To answer your question tertle, I've known people who have done that. But I buy into the whole 'don't take out loans to pay for another loan.'

Just an opinion, but yes it has been done.

[Guest sleepy]

But the SCRA allows you to get a military defferment and a 6% interest rate cap. Better than nothing, especially if you have private loans.

Thread revival:

Read something the other day about rates increasing yet again in July.

I am sending letters to my creditors today to get my rate knocked down to 6%. Even on my mortgage. If anyone wants to use my letter and simply plug in their numbers and applicable addresses, PM with your e-mail address and I'll send it to you.

Note: As I understand it, SCRA only applies to loans incurred prior to military service.

Cheers!

[Guest JimmyH]

Note: As I understand it, SCRA only applies to loans incurred prior to military service.

True. ALSO, it applies retroactively to your EAD, so be sure to include proof of EAD and you'll actually be able to fold all that money you've been paying since you entered back to the principal or get a check for the overpaid interest. It ended up being quite a bit of money for me because I had gone so long between my EAD and when I was made aware of that SCRA benefit and sent in my letters. I even got money back from debt I had paid off long ago.

[Chicken]

True. ALSO, it applies retroactively to your EAD, so be sure to include proof of EAD and you'll actually be able to fold all that money you've been paying since you entered back to the principal or get a check for the overpaid interest. It ended up being quite a bit of money for me because I had gone so long between my EAD and when I was made aware of that SCRA benefit and sent in my letters. I even got money back from debt I had paid off long ago.

I have gotten this to work for some creidt cards, but does this work for mortgages as well?? We also have a timeshare we bought after being on active duty for a couple years, requested the 6% from them, and they sent us a letter stating something about us not being able to get the 6% as we were already on active duty when we got the timeshare.. where is this act spelled out, and what it can get you?

Active duty BTW... not guard.

[LJ Driver]

True. ALSO, it applies retroactively to your EAD, so be sure to include proof of EAD and you'll actually be able to fold all that money you've been paying since you entered back to the principal or get a check for the overpaid interest. It ended up being quite a bit of money for me because I had gone so long between my EAD and when I was made aware of that SCRA benefit and sent in my letters. I even got money back from debt I had paid off long ago.

So if I just sent in my letter will they just send me a check for finance charges paid over the 6%?

[Herk Driver]

I have gotten this to work for some creidt cards, but does this work for mortgages as well?? We also have a timeshare we bought after being on active duty for a couple years, requested the 6% from them, and they sent us a letter stating something about us not being able to get the 6% as we were already on active duty when we got the timeshare.. where is this act spelled out, and what it can get you?

Active duty BTW... not guard.

Right, only applies to pre-service debt or pre-called to AD debt.

Google SCRA and you can find the whole thing and read for yourself.

[Guest JimmyH]

I'm surprised this isn't briefed more when you join the military. I was shocked when I found out my benefits. I'm not going to google it (short on time at the moment) but what I do remember:

1. It applies to all PRE-service debt. If you took out the loan/credit after your EAD, it won't help you out. If its a credit card you can ask them to apply it to all transactions BEFORE the EAD and they'll adjust accordingly.

2. It does not apply to ALL debt, but it worked on nearly all of my debt. I didn't have a pre-EAD mortgage, so I can't be sure on that. Also, I couldn't get it applied to my car (secured debt?) but I may have been able to try harder? My car interest rate was never higher than 6.2% before it got paid off so I sorta just let that slide.

3. Some companies will fold your "rebate" into the principal if you still owe. Basically, you won't see a check, but the term on your loan will be shorter (or possibly the monthly payment).

4. This has saved me thousands upon thousands of dollars. DEFINATELY look into doing it, ESPECIALLY if you have large private college loans with adjustable rates that wouldn't consolidate at lower than 6%. Heh.

I have absolutely no debt accured AFTER my EAD (other than mortgage), so it lowered my payments, the term length, in some cases eliminated the debt, and in some others I ended up getting money back on credit cards I had long since paid off. I wasn't the most responsible with money before I joined, and definately paid for that my first couple years by having a lot less money to throw around than the average brand new Lt.. But after having found out about this I ended up with a bunch of money I didn't expect that I was able to immediately save. And now I'm proud to boast an oustanding credit rating. Had it not been for the SCRA I would still be digging myself out of debt that is now a distant memory. The only debt I still have is those godawful student loans and my mortgage.

Oh, watch out for tax implications of retroactively lowering high interest rates. My taxes were somewhat complicated after the SCRA, though fortunately it didn't hurt me more than just slightly.

[BADFNZ]

Does this apply to spouses too?

[pawnman]

Does this apply to spouses too?

Joint credit cards or loans, yes. Credit cards or loans that apply ONLY to your spouse, no.

[Guest Sooner]

Nothing to do with the SCRA but up until 1995 (maybe 1994) any military officer could defer his student loans up to four years upon commisioning into the service. Former President Clinton changed this during his tenure.

[Guest sleepy]

Many of you asked for the form letter I wrote. I hope it has served you well.

Now I need some help, please. Sallie Mae is pissing on my leg and trying to tell me it's rain.

After mailing my letter to them for my student loans, I received an application for deferment from them. I was not looking to defer my payments; my intent in sending the letter was to have my interest rate reduced.

Along with the application came a page of obligatory legalese. Among the definitions, I found these interesting tidbits:

-Active Duty means serving in full-time service of the United States (U.S.), not including training or attendance at a service school. (italics mine)

-Qualifying National Guard Duty means training or other duty, other than inactive, performed by a member of the U.S. Army National Guard or the Air National Guard on full time National Guard duty as called to service authorized by the President or the Secretary of Defense. The training or other duty must be performed for more than 30 consecutive days in connection with a war, other military operation or a national emergency as declared by the President and supported by Federal Funds. (italics mine)

-Serving in Active Duty means service by an individual who is a Reserve of an Armed Force ordered to active duty under section 12301 (a), 12301 (g), 12302, 12304, or 12306 of title 10, U.S. Code, or any retired member of an Armed Force ordered to active duty under section 688 of such title, for service in connection with a war or other military operation or national emergency... (blah, blah, blah)

I called today and, of course, spoke to someone who barely spoke Engrish. I was told that I had been sent an e-mail--an e-mail? but I sent them a letter--stating that I was not eligible for the reduction in interest that the SCRA provides. This e-mail was news to me, so I asked "Hillary," who I am sure is known by her friends as Suydatamara, if she could have this e-mail sent to me again. It will be on its way in 48-72 hours, supposedly. Hmm...The hamsters powering the computers in south Asia must be on vacation.

Granted, I have not yet received this e-mail informing me why I am not eligible (who thinks I will actually receive it? Bueller?). Nevertheless, would my status as a Guardsman on Title 32 orders have anything to do with it?

I'm no lawyer, but the first two bullets contradict themselves in terms of the training clause.

I don't get it. What should my next move be?