Published
The bonus is paid in a lump sum and is taxed 28% no matter what your tax bracket is. Therefore, if you receive $30,000 you can expect to pocket approx $21,000.
The loan repayment is also paid in a lump sum directly to your loan company (or companies depending on your situation). It too is taxed 28% upfront and the remainder is paid to your loan company.
As an aside, USAA offers a really awesome loan to all newly commissioned members. I can't remember what it's called right now, but I know it's not featured on their website. If you call their personal loan department they will know what it is. In short, it's a loan for $25,000 with a fixed interest rate of only 2%! That was two years ago, so the interest rate might be different now. I received the loan and used it to pay off credit card debt I accrued while in nursing school. Since it's a loan you can use it as you choose. I've known people to use it to invest, to buy a home, a car, etc.
The loan through USAA is the Pre-Commissioning Loan, which you're eligible for once you're accepted through one year past your commissioning date. It's for up to $25K and the rate is stupid low - I think they told me it's 4.4%.
If your BLS has expired, I would renew it. I would not report for a military position or for COT without it. I believe it's one of the certs that they ask for on my list of stuff to have at arrival, but I won't say for sure.
Anyone heard a figure for the loan repayment for 2010 (ADHPLRP)? I can't believe this document doesn't state a specific amount considering how specific it is naming eligibilty requirements?!
Looks like the commitment was changed from 4 to 6 years for 20k (from 30k) and ADHPLRP whatever that amount is...
I just called about the USAA loan. It's called the Career Starter Loan. It's a personal, unsecured loan up to $25,000, so you can use it for anything you want. You have to establish a checking account with them and I think have your paycheck direct deposited. You have a 5 year payoff period and repayment doesn't start until 3 months after commission. The phone number I called was 800-531-USAA. I'm still waiting to commission, but they went ahead and gave me a member number and said to call back after I commission to apply.
DrCOVID, DNP
462 Posts
Good news those pending Air Force induction: Signing bonus is to be offered FY2010, and my recruiter said there will be loan repayment as well (See attachment).
I have my RN license, but my BLS/CPR is expired... will I renew this at some point in the AF before I start working or do I have to do this on my own?
accession bonus.pdf