Quote from jmet1020
Thanks for the response Scout.
Were you also informed that they do not pay the interest on the loans?
Do you have any idea how that would work out?
Here is what I was told by my recruiter....
Bonus is taxed. You are paid one lump sum when you report to your duty station (after officer training). Right now the bonus is about $25K for a 4 year commitment I believe....at least that's what mine is.
Loan repayment is not taxed, but the loans are not paid off right away. The military puts them into deferment for one year and after that year they will pay off the amount that you were granted when you commissioned. I'm not sure the reason for the deferment, but that's how she said it works.
Granted, I'm not in the AF yet, I'm still waiting to hear back about my application, but this is the information that I have been given thus far. Details may also differ by branch so Army might be different.
Anyone out there who knows different, feel free to correct me. I'm just going off of what I've been told.
Hope this helps a little.