Army Nurse- Loan Repayment Plan

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Hi Folks,

I will be graduating this coming May with my BSN and am considering signing up to become an army nurse. I'm considering opting for the student loan repayment program, not the sign-on bonus, because I attend a private school and have a tremendous amount of student loans.

I know that I would sign up for three years and the student loan repayment money would be divided up among those three years. I was wondering if anyone has gone through this simply because I would like to know how much I should expect to be taxed on this money?? Is it considered income? It is considered to be bonus money, in which case it maybe subject to a higher tax rate?

I'm excited to join, but I also need to plan ahead to figure out how to prepare myself financially. I've tried asking the army health care recruiter and searching online but I can't find this information anywhere. So I'd appreciate any information that anyone may have.

Happy new yr!

Thanks-JA

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Specializes in Did the job hop, now in MS. Not Bad!!!!!.
Hi Folks,

I will be graduating this coming May with my BSN and am considering signing up to become an army nurse. I'm considering opting for the student loan repayment program, not the sign-on bonus, because I attend a private school and have a tremendous amount of student loans.

I know that I would sign up for three years and the student loan repayment money would be divided up among those three years. I was wondering if anyone has gone through this simply because I would like to know how much I should expect to be taxed on this money?? Is it considered income? It is considered to be bonus money, in which case it maybe subject to a higher tax rate?

I'm excited to join, but I also need to plan ahead to figure out how to prepare myself financially. I've tried asking the army health care recruiter and searching online but I can't find this information anywhere. So I'd appreciate any information that anyone may have.

Happy new yr!

Thanks-JA

Actually JA, I'm curious as to how old you are and where you live. Only because this thought has been crossing my own mind lately, and I just feel like I'm going in slower motion than many younger nurses. I am also out of work, somewhat newly graduated and in debt for thousands and thousands of dollars b/c I too went to a private university for nursing school and I'm terrified that I'm going to spend my "comfort years" in pain, stress, and debt...

Chloe

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I am 30 and an from NYC. I decided to switch careers and so I returned to nursing school. Did you just graduate recently or have you been working for a few years? Have you been looking into becoming a military nurse?

Thanks- J

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Specializes in Did the job hop, now in MS. Not Bad!!!!!.

As I state above, out of work and $1000's in debt. Yup, I graduated last May. Became the victim of a home invasion 2 days after grad., and on benzo's prepped myself for NCLEX which I passed w/ minimal Q's mid August. End of Sept landed a job on a highly acute stressful idiot Onco/Heme/Hospice unit with only a 6 week orientation for new grads?! Horribly sick w/ UTI and peeing/pooping blood, I quit and haven't found employment yet.

That's my nutshell. I'm also fr upstate NY originally and hating the south. But will relocate almost anywhere else!!!

any suggestions?

Chloe

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Chloe,

Sorry to hear about your situation. It sounds awfully stressful, but keep in mind that things will get better. Maybe you can look into some staffing agencies. Also, try calling an army health care recruiter. Joining the service (any branch) may give you the opportunity to possibly relocate and help relieve your financial difficulties. It can't hurt to inquire. There are more options out there for you than you realize.

Best of Luck!!- J

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Hi Folks,

I will be graduating this coming May with my BSN and am considering signing up to become an army nurse. I'm considering opting for the student loan repayment program, not the sign-on bonus, because I attend a private school and have a tremendous amount of student loans.

I know that I would sign up for three years and the student loan repayment money would be divided up among those three years. I was wondering if anyone has gone through this simply because I would like to know how much I should expect to be taxed on this money?? Is it considered income? It is considered to be bonus money, in which case it maybe subject to a higher tax rate?

I'm excited to join, but I also need to plan ahead to figure out how to prepare myself financially. I've tried asking the army health care recruiter and searching online but I can't find this information anywhere. So I'd appreciate any information that anyone may have.

Happy new yr!

Thanks-JA

I am going throught the application process right now, and it is my understanding that it is taxed as a bounus, but still comes out to be a great amount.

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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?

Thanks-J

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Specializes in L&D, mother/baby, antepartum.
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?

Thanks-J

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.

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Hello:

Just curious for any one who knows??? If you join the ARMY Reserves, you would only be entitled to the bonus or the loan repayment, and not both...??? Thanks in advance.

Any one know what the current bonus is??

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Specializes in L&D, mother/baby, antepartum.
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.

i'd just like to correct the above statement in red. my recruiter told me that loan repayment is not taxed but in fact it is taxed. i should have known it was too good to be true :nono: anyway, i signed my loan repayment paperwork today and it very clearly states that all loan repayment is taxed. i just wanted to clarify this so as not to pass along erroneous information. despite being taxed it is still a good bit of money.

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I'm pretty sure: but the loans MUST be federal student loans?? Is this the case?? Thanks....

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Specializes in L&D, mother/baby, antepartum.

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.

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