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

[SpookyCat]

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?

[The Little Greek]

kato10 said:

It would be an extension onto whatever contract you already have. So, say you took the nursing bonus and owe 4 years and now want the incentive special pay then you accrue whatever else you sign-up for....another 2, 3, 4 years. I have the pdf print out from my recruiter so it is true. He told me to decline the "sign on bonus" as the incentive pay is much better deal. If you are expecting to stay in for 8 years then do both.

I've scanned most of the file into my computer, so if you want more info the just send me PM with email address.

Kato10, I'm going to PM you my email address because I'd like to see the pdf to clarify this. I have just taken and passed my RNC exam and will be applying for the ISP (which I think is what you are talking about here) when I am eligible. The ISP packet is very specific that you must have completed or be within one year of completing your initial commitment. That being the case, it wouldn't matter if you took the sign-on bonus or loan repayment because you would have to complete your initial commitment to get the ISP anyway. Because the ISP is actually an incentive bonus I can't imagine why they would let you apply for it if your commitment has just started. I could be totally misunderstanding what's being said here so if I could see what the recruiter has given you perhaps it would help clarify. I would hate for you to miss out on money based on a misunderstanding.

Sending that email address now...

[SpookyCat, BSN, RN]

carolinapooh said:

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.

Yes I was told that it would go directly to my lender but I would never see the whole 40k because of taxes. I swear I was told that it was a 3 year commitment of active duty. Now there were some additional years tacked on at the end of inactive reserve. Is that what you are referring to as 6 years?

I was offered both the loan repayment and the bonus for 6 years of active. However, I was told not to take it because once I fulfill my commitment of three years I can request loan repayment again if my loans are not paid yet for an additional year of commitment.

[carolinapooh, BSN, RN]

The Little Greek said:

Kato10, I'm going to PM you my email address because I'd like to see the pdf to clarify this. I have just taken and passed my RNC exam and will be applying for the ISP (which I think is what you are talking about here) when I am eligible. The ISP packet is very specific that you must have completed or be within one year of completing your initial commitment. That being the case, it wouldn't matter if you took the sign-on bonus or loan repayment because you would have to complete your initial commitment to get the ISP anyway. Because the ISP is actually an incentive bonus I can't imagine why they would let you apply for it if your commitment has just started. I could be totally misunderstanding what's being said here so if I could see what the recruiter has given you perhaps it would help clarify. I would hate for you to miss out on money based on a misunderstanding.

Sending that email address now...

Thanks for your post. I haven't been able to comb the Kx for the particulars and wanted to be sure I posted correct information. I've just now been able to sit down for a lunch break and thought I'd surf the board here. Thanks for posting how this works.

[carolinapooh, BSN, RN]

SpookyCat said:

Yes I was told that it would go directly to my lender but I would never see the whole 40k because of taxes. I swear I was told that it was a 3 year commitment of active duty. Now there were some additional years tacked on at the end of inactive reserve. Is that what you are referring to as 6 years?

I was offered both the loan repayment and the bonus for 6 years of active. However, I was told not to take it because once I fulfill my commitment of three years I can request loan repayment again if my loans are not paid yet for an additional year of commitment.

The loan repay with bonus is a six year active commitment and unless something's changed in the last week they are a package deal. Once you turn down loan repayment, you cannot get it again, and that's straight from the folks at AFIT (out of curiosity I had asked them that myself). If you refuse it, you refuse it forever; you don't get a second chance.

If you owe less than forty grand, you are only paid the amount you owe, and it is taxed. For example, if you owe $20K, they give you $20k, and hold back the correct amount of state and federal taxes. If you owe 32k, same thing. You only get 40k if you owe 40k or more.

[HNELLA]

Well I owe a tad over 45K so we will see what is up

[carolinapooh, BSN, RN]

HNELLA said:

well I owe a tad over 45K so we will see what is up

The maximum you'll get is forty grand, and that will be taxed at a rate of at least 28%, more if you pay state income tax.

[mkggirl]

carolinapooh said:

You can't get the loan repayment without a bonus. It's a package deal. 20K + up to 40K in loan repayment for a six year commitment.

I'm curious as to why someone wouldn't want the bonus. If you only want a bonus, it's 4 years for 30K, which you can apply to your student loan debt. But a three year contract gets you no bonus of any type, no loan repayment - no extras at all.

I was told today by a recruiter that for three years I could choose the student loan repayment or the bonus. The website veifies this to be true. I could have both if I signed for 6 years. I am not sure why there are so many stories. Did this change recently?

[carolinapooh, BSN, RN]

Then they've changed it - because while my original orders say a three year commitment, my information in AFPC changed to four when I accepted the bonus, and then to six when I got the bonus and the loan repayment. I wonder if there's any way for me to get a straight answer out of AFPC (don't anyone else do this, please - I'll see if I can check a few sources out myself).

The main reason I find this odd is I know the AF is meeting its recruiting numbers. The big problem now (for some reason) is retention - we have three RNs on my floor alone who are captains and who are separating before the end of the year. It's unusual for a service to lower commitment times and up the freebies, if you will, when the problem is retention.

If it turns out I've been wrong, I'll throw my hand up with no problems. My main concern is I want to be sure (especially as a Guide!) that people are getting correct information. I don't know if I can find anything out over a weekend (I doubt it, very seriously) so if folks are willing to give me a few days, I've scored an extra day off next week as payback for some on-call time I did as a favor for my flight commander and I can see what I can find out.

[carolinapooh, BSN, RN]

mkggirl said:

I was told today by a recruiter that for three years I could choose the student loan repayment or the bonus. The website veifies this to be true. I could have both if I signed for 6 years. I am not sure why there are so many stories. Did this change recently?

Can you provide the link for that website? I might be able to find something I'm looking for on there. I went to the recruiting website for the AF and can't find specific information on the loan or a signing bonus, so I'm guessing you're on another site that I can't find for some reason. Thanks!

Edit to add: if it's airforcetimes.com, please keep in mind that that website and that publication are private and independent of the Air Force and actually aren't endorsed by the Air Force directly - even though some of the information they reveal to the AFT is a bit shocking when you consider operational security. Also, the numbers on that page that I found are old; I know this because a captain on my floor received that particular bonus when she came in three years ago. (This person was shocked when she found out what I received!)

[carolinapooh, BSN, RN]

The reason I say this is inaccurate is because I came in under FY 2010 and this is not what was offered nor how it was offered - there was no bonus for three years, only for four.

(My earlier edit referenced another page I found on airforcetimes.com, with old numbers that must have been an old link.)

I'm still researching....I do want folks to have straight answers.

[carolinapooh, BSN, RN]

Here's a copy of a convo between me and a chat operator on airforce.com - I registered and asked a few questions. You can go to airforce.com, register, and talk to a live operator at any time. Keep in mind this website IS the USAF. (I left up the addy and phone of the SA recruiting office only because you can Google this information anyway, and I wanted to leave the conversation intact. I copied and pasted this information directly with no changes at all - as I've said, I want people to have straight answers.)

Please wait for a site operator to respond.

Hello, this is'Ray', what can I do for you?

Kim : Quick question - can you tell me the current bonus, student loan repayment, and contract lengths for Air Force nurse accessions? thanks

Ray: Here's the info we have on that amounts

Ray: those*

Ray: NURSES Accession bonus: $30K for a 4 years commitment/ or / Accession bonus+ HP loan repayment: $20K/ $40K for a 6 years Commitment

Kim : THANKS so much! Can you give me the number and name of the Health Professions recruiter in the San Antonio area? I have a friend who's very interested

Ray: Searching:

Kim : IS that UP to 40 K for student loans, or just a straight forty grand?

Kim : and is that taxed?

Ray: Up to

Ray: and yes, it's taxable

Kim : Thanks

Kim : Ok

Ray: 8200 IH-10 West, Ste 101

Ray: San Antonio, TX 78230

Ray: Telephone:

Ray: 210-341-6802

Kim : Thanks again for all your help

Ray: Thank you for visiting airforce.com and our Live chat. Best wishes.

Kim : you as well

Chat session has been terminated by the site operator.

[mkggirl]

Attached are the links that they sent me. But I also asked over the phone and I was told three years (for nursing corps) for the loan repayment or the bonus, and 6 years for both. However they never even mentioned anything about 4 years. Review "active Duty Benefits" and it states "under the three year plan" you are eligible for up to $40,000 per year of student loan repayment.

https://www.goarmy.com/careers-and-jobs/browse-career-and-job-categories/medical-and-emergency.html

https://www.goarmy.com/careers-and-jobs/amedd-categories/nurse-corps-jobs.html

I hope this helps and doesn't make it more confusing. I am very interested to know what the final answer is. So please keep us posted on what you find out.