Air Force Student Loan Repayment (or lack thereof??)

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Specializes in OR, Clinic, Med-Surg.

Hello All,

I have posted on other older forums related to this a couple months ago. It seems as though the story has changed for me, yet again.

Originally, my recruiter said to me that I could choose either the loan repayment (28,000 after taxes) for 3 years comittment or a bonus (~23,000 after taxes). I chose the loan repayment. No matter what It would all be for loan repayment anyway. He said that I will know whether or not I'll get the loan repayment prior to this summer. I submitted my application for this in early January. My recruiter has always said that if I don't get he loan repayment I can always try for the bonus.

As of a couple months ago, I was put on an alternate list. Then my paperwork needed to be resubmitted last month because some info that my recruiter filled out related to months and years of comittment was incorrect. He said that it seems hopeful being that they've obviously looked at it, which means they could be reviewing my case.

Then I talked to him last month. Now he's saying that I most likely will NOT know whether I am getting the loan repayment prior to swearing in. He said that I may know a couple days prior to COT. IF I don't get it then we can always switch to the Bonus. My COT starts 08/23/10.

This all is starting to sound fishy to me. Do recruiters make more $$ if they get you to take a bonus over loan repayment? Why does it seem that the story is constantly changing? I do really want to know prior to swearing in if I'm going to have to do more than 3 years active. My recruiter keeps pushing the bonus at me. All the while, I'm feeling like I'm getting the shaft. Isn't there a chance that they'll run out of bonus money as well. Then what??? I sign for 4 years for nothing? Yes I do understand the other perks (ie tax free income, free medical, and etc.) of going into the USAF. I'm also extremely patriotic. But please don't try to guilt me into being okay with nothing like my recruiter has already tried. "You're not joining the Air Force just for Loan repayment or the Bonus, Are you?" I'm not okay with this if I know that others have gotten the 3yr/$28,000 and I'm getting nothing. Now he's saying that people would "Kill" for my spot in COT. Making it sound like I should be thankful that I have my spot. (Hey I started this whole process over a year ago so that I'd have this spot. Please don't try to use this to guilt me too!)

I was told in times past not to worry about this and to worry more about COT. Well I can't help but worry about this. This is MY Life and no one else is going to have to pay the $750/mo. my loans will cost me for 10 years without the loan repayment, except for ME. Thus I am a bit freaked.

Sorry I rambled on and on about this. Is anyone else in this situation?

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Bottom line, we're all here to get paid. We don't volunteer for the job, so we all understand where you are coming from. This is your finances and they're important. The recruiter doesn't make any money off you. The bonuses and loan repayments come from different departments. The bonuses will be there for the fiscal year and the loan repayments sometimes run out. Carolinapooh wrote about this on another thread that she was on the alternate list and now she's got it. If you don't get the loan repayment, I can't see why you wouldn't get the bonus.

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Check out AirForce Nursing Bonus, Student Loan Repayment page 13. Carolina Pooh talks about how she didn't get loan until COT. Keep your fingers crossed.

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I'm not familiar with the AF bonuses but I 'feel' like 3 years is incorrect.

The loan repayment for both the Army and AF occurs over a 3 years period... each end of the year they pay of 1/3 of the original balance minus taxes, 3 years is the time it takes to pay the loan.

My thought is that your obligation active duty time will be 4 years.. as this is the case both in the navy and the army and almost all bonuses that are also used as 'enlistment bonsues'. 3 is just not used ;)

I've personally been in a similar circumstance and chose the slightly lesser value that had less risk of going wrong and still enabled me to reach my goals. Personally I would have chose then loan repayment as it is more of a sure thing. Like you said you didn't get feedback, not sure the origin of your loans or if they are in pursuit of a BSN...

I'd re-look into your commitment understanding as 3 years seems wrong to me. I'm wondering if there was is a misunderstanding of the duration of loan repayment and confusing that with obligation period. I might be wrong but would look into it.

best of luck

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Specializes in ED. ICU, PICU, infection prevention, aeromedical e.

I think the loan repayments are cycled thru in different fiscal cycled that would be difficult to understand. Others were told the money for loan repayment had all been spent and they would get the bonus instead, but then the money got allocated to the loans and they got it.

I do understand your frustration. We know it isn't about the money. I would hate to be standing next to someone who is doing the same thing as me, but not struggling financially due to paperwork and money allocations.

I doubt you'll be out of both. I suggest you keep your spot. Aim for the loan, but be satisfied with the bonus. You may find yourself pleasantly surprised that it all works out. (I can't believe my stuff is all working out, believe me! After the long wait and frustrations, I can feel yours!)

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I am sorta in this situation as well, and I can certainly empathize, its difficult not knowing whats going on, and being afraid whether or not the choices you are being given are the right ones to make or not.

I am also interested in a question that was asked and wanted to clarify it, if no one minds.

Is it possibly to change from no bonus to getting the bonus at COT? or would it be only before going to COT?

thanks

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The bonus is currently (and someone correct me if I'm wrong, because this was true a month ago) $30K for a four year commitment. If you take the bonus AND the loan repayment, the bonus becomes $25K. The loan repayment, if it is available, is up to $40K and adds another two years - so if you get both, it's a six year commitment total. Both of these are taxed - you lose about 6-7K (I got $18.5K and I don't pay any state taxes, only federal) and about 30% of the loan payback.

I submitted my packet to the board in February and didn't hear anything until the end of May (of last year). Twice paperwork was returned to my recruiter because she screwed it up. The packets are reviewed for errors before they hit the board, so that's probably what's happened.

Bonus money is not allocated the same way by Congress as loan repayment money. The services are (and some of this I'm surmising based on pieces of information I've been given, and not from recruiters) promised X amount per head in sign-on bonuses over a fiscal year (this money doesn't really run out). If the Air Force says it's going to take 200 new nurses over a fiscal year, Congress tells the Air Force it will give it bonus money for that many RNs. Loan money is allocated until it runs out - and since different people take different amounts, it tends to disappear.

When I commissioned, I was told the loan repayment money was gone. I didn't care - I told them I'd take the bigger bonus for a four year commitment. About halfway through COT, I got an email from Wright-Patt AFB saying there was loan repayment money available if I wanted it. So I took it.

Some of what your recruiter is feeding you would annoy me as well - you KNOW that for every slot in COT there's probably three (if not more) qualified applicants, so him telling you that is just recruiter propaganda. :) If you want to be an Air Force officer, take the four years with the $30K because there's a very very good chance you'll be offered the loan repayment. I'm currently serving with RNs who came in a year earlier than me who DIDN'T get as much free cash as I did (this person was surprised at how much me and the other new officer on my unit, a captain, received - hey, she asked!), and that's the way it works. That's something you have to accept.

It's like flying on an airplane - there's always going to be someone who paid more for your same ticket and someone who paid less. You and only you have to decide if you can live with that. If you took the $30K bonus and you get the $21K after taxes, put that amount to your student loans. Even if it doesn't pay them off, it will lower the crap out of your payment. Where else are you going to get $21K these days just by holding out your hand?

Your recruiter may want to know if you're wasting his time and he's got a crappy way of asking the question. Recruiters, oddly enough, don't always have the best people skills.

The story hasn't changed. The situation has changed. Most of us went through the same thing.

BTW, there were multiple RNs I ran into at COT that got an email from Wright-Pat while we were there.

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just_cause said:
I'm not familiar with the AF bonuses but I 'feel' like 3 years is incorrect.

The loan repayment for both the Army and AF occurs over a 3 years period... each end of the year they pay of 1/3 of the original balance minus taxes, 3 years is the time it takes to pay the loan.

My thought is that your obligation active duty time will be 4 years.. as this is the case both in the navy and the army and almost all bonuses that are also used as 'enlistment bonsues'. 3 is just not used ;)

I've personally been in a similar circumstance and chose the slightly lesser value that had less risk of going wrong and still enabled me to reach my goals. Personally I would have chose then loan repayment as it is more of a sure thing. Like you said you didn't get feedback, not sure the origin of your loans or if they are in pursuit of a BSN...

I'd re-look into your commitment understanding as 3 years seems wrong to me. I'm wondering if there was is a misunderstanding of the duration of loan repayment and confusing that with obligation period. I might be wrong but would look into it.

best of luck

The initial commitment is 3 years with nothing (no loan, no bonus), 4 years with a sign-on bonus only, and 6 years with a sign on and the loan repayment. The Air Force pays out the loan repayment in one lump sum - they contact your lender, calculate what you get, and the POOF - one day your loans evaporate. It's a wonderful feeling!

Of course, since you're an officer, after the initial commitment you're usually "free", so to speak, to serve "at the whim of the President" until you're either force-shaped, resign your commission, are booted out (!!!!), or retire.

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And thanks to Shapely for remembering me! :) Makes me feel good!

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Specializes in all.

Are you sure that 3yr is no bonus/no loan repayment? Also, I was told that once AD we could apply for some loan repayment program...you I really need to start writing down what my recruiter tells me....

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Specializes in OR, Clinic, Med-Surg.
carolinapooh said:
The initial commitment is 3 years with nothing (no loan, no bonus)...

Whoa.... wait a minute. I was told that for 3 years I could get the loan repayment (40k or 28k after taxes).

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No, that's not accurate. The loan repayment incurs a six year commitment, and it's up to forty grand, and it's paid directly to your lender.

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