Army Nurse- Loan Repayment Plan

Itshamrtym · Apr 25, 2008

:redbeathe:redbeathe

I was told that they must be federal loans but on the paperwork there was an area to check "government" or "private" next to the loan listed. They may do that to weed out the private loans that people may try to list--who knows. In my case I only listed federal loans.

Thank you for your response!!! So I guess government loans would be stafford loans etc..??? I have been on the fence about joining ANC for quite awhile. I started BSN but didn't get very far. I would need some sort of assistance to help out. From what I have found, it seems that the government loans are such small amounts. And I have heard of people having huge student loan debt, and think where did they get that loan??

Thanks again The Little Greek!!! Take CARE:nurse::redbeathe:nurse:

iToniai · May 6, 2008

Can someone please explain to me what does it mean that the loan repayment is taxed? So if I have about 80K of student loans, what does that mean if the army agrees to pay off the 80K? Does that mean I would have to pay whatever the tax comes out to be on the 80K or does that mean even though it says 80K will be paid after taxes only about 50K will be paid. Can someone please clarify that for me.

The Little Greek · May 6, 2008

Can someone please explain to me what does it mean that the loan repayment is taxed? So if I have about 80K of student loans, what does that mean if the army agrees to pay off the 80K? Does that mean I would have to pay whatever the tax comes out to be on the 80K or does that mean even though it says 80K will be paid after taxes only about 50K will be paid. Can someone please clarify that for me.

The way I understand it is that no money will come out of your pocket. Essentially the Army says "here, we are giving you $80K, but before we do we are going to tax it like income". They then take out the amount needed to properly tax you and send the remainder to your student loan company. So if they say they are going to pay off $80K, it's really $80 less the taxes. I'm not sure how much is taxed on $80K but I'm sure it's quite a bit! I am also assuming that the $80K is then added into your W2 as income for that year so that you can show the feds that you received that extra money (which is standard in civilian sector too when you receive bonuses and such).

Does all that make sense?

iToniai · May 6, 2008

The way I understand it is that no money will come out of your pocket. Essentially the Army says "here, we are giving you $80K, but before we do we are going to tax it like income". They then take out the amount needed to properly tax you and send the remainder to your student loan company. So if they say they are going to pay off $80K, it's really $80 less the taxes. I'm not sure how much is taxed on $80K but I'm sure it's quite a bit! I am also assuming that the $80K is then added into your W2 as income for that year so that you can show the feds that you received that extra money (which is standard in civilian sector too when you receive bonuses and such).
Does all that make sense?

Thank you for explaining, I didn't get it at first. However, I just got off the phone with a health officer recruiter, this is what he said that made more sense to me. He said if I sign up for the minimum (3 years) and take only the loan repayment option then it works out that the army would pay around $31,000 a year after taxes. He told me he wouldn't recommend taking the loan repayment and bonus option because of the time commitment. I thought that was strange, aren't they suppose to try and get me to sign up for as many years possible? Anyhow, I would be eligible for the 12 month nurse residency program, so I'm excited to learn more about it when I meet up with him.

Itshamrtym · May 7, 2008

please keep us posted.. THanks....

jmet1020 · May 8, 2008

Hi Deetonia,

As I understand it the army gives you a set amt for loan repayment and divides it up among your three years or service (assuming you take that option). Also, I was told by a healthcare recruiter that they DO NOT pay the interest on the loan meaning that their disbursements will only be applied to the prinicpal balance. So, depending on your interest rate, you may still have to pay off some portion of the loan.

And I'm in agreement with Little Greek's explanation above that the $80k would be taxed as income. I honestly never got a direct answer from the healthcare recruiter on this, but this is what makes the most sense. In the end, all monies are taxed. So you would have to anticipate paying alot more taxes, especially on $80k (divided up among three years of course). I hope this helps.

Please keep me posted. I'm still looking into this option myself and would like to get all the details possible.

Good luck!

The Little Greek · May 8, 2008

Also, I was told by a healthcare recruiter that they DO NOT pay the interest on the loan meaning that their disbursements will only be applied to the prinicpal balance.

Good call on the interest. I hadn't even thought about that!

iToniai · May 10, 2008

So I met with the recruiter today and I asked him about the loan repayment and interest, I was told that the interests are paid too. He said whatever the total amount of your loan is what that gets paid. I'm already getting frustrated with this process because of the conflicting information. My recruiter also told me that I would come in designated as a med/surg nurse but my contract will guarantee that before the end of my contract I can take one of those 16 week course, is that true?

Itshamrtym · May 10, 2008

I would just make sure that everything is in writing!!!!! Because if it isn't in writing, then I guess you are out of luck... get it all in your contract. Good luck and take care.!!!!!!!! It will all work out for you.

The Little Greek · May 10, 2008

So I met with the recruiter today and I asked him about the loan repayment and interest, I was told that the interests are paid too. He said whatever the total amount of your loan is what that gets paid. I'm already getting frustrated with this process because of the conflicting information.

I'm sorry that you are getting frustrated. I got frustrated at times too (and still do a little) but you'll make it through just fine.

As for loan interest, I can definitively say that for the AF, the paperwork very clearly stated that loan repayment was taxed. I had to initial by it so I'm sure it's a point they want everyone to be 100% clear on. It may be different for Army so I'd suggest trying to track down an Army nurse who's been through the process. As Itshamrtym said, everything that you've been told to be true needs to be be in writing in your contract.

Keep on keepin' on. You'll sort through it all eventually!

azariasRN · May 15, 2008

Ok - I have learned more about this program on here than what most recruiters know. I am a nursing student with 2 semesters left before graduation. I have been looking to use this program to pay off my student loans, but can't get an answer if prior service are eligible for the program? I have served 4 yrs Active Army and 2 years Guard. I have long since exhausted my MGIB funds, so i need to see how I can get the $43K in students loans forgiven.

scout2505 · May 16, 2008

I have 8 years prior service and my loans are going to be repaid. Prior service doesn't matter. At least if you are going active duty, I cannot vouch for the reserves.