College Loans/Future Education/Salary questions

[Gazi]

I'm entering my senior year of college and will have my BSN by this time next year. I have more than one reason for wanting join the military. As I approach graduation, College Loan Repayment, Future Education opportunities and Salary are some of my biggest concerns at the moment. I will eventually go and talk with a medical recruiter but I'd like to go in somewhat informed as I don't know much about these areas. Please bear with my questions and I appreciate any help you can give!

I hope with these questions I don't come off the wrong way. These areas of concern that I express are not the only reasons why I'm considering joining the military. As I prepare to graduate and enter the real world these are major concerns in my life right now. How sweet it would be to be able to serve my country all the while simultaneously furthering my career.

College Loans:

1. I read on both the Army and Air Force websites that new-grads can qualify for up to $120,000 in loan repayment over 3 years (max $40k per year). Does this mean they will pay all loans up to $120k? (I will have approximately $90k in loans total from a state college by the time I graduate if that matters)

2. Is there any "catch" to loan repayment? (ie for every year the military repays my loans do I owe the military a certain # of active duty years in return, etc.)

Future Education:

1. My goal after graduation is to become a CRNA or possibly an NP. Will joining the military hinder or benefit me in any way to achieve that goal? (will I be put on a track to achieve this goal such as being positioned in a critical care setting and gaining experience to ready me for grad school)

2. Does the military have their own exclusive CRNA or NP program or will I attend a civilian grad school?

3. Will the military pay for grad school as well as continue paying my normal salary?

4. Similar to my loan repayment question, is there a "catch" for the military putting me through grad school? (ie for every year of grad school they put me through I owe in return a certain # of active duty year, etc.)

Salary:

1. Is the salary for all officers the same or is there a differential for nurses? (After looking at the Officer pay grade chart I've noticed that the salary for an O-1 is almost 1/3 what some of my friends are making in the civilian world with their BSN) This is not such a big deal when considering loan repayment, grad school costs, etc. but it is an area I'm a little cloudy on.

2. Does salary and loan repayment become intertwined/overlap in any way or are they two separate entities? (ie if the military is repaying my college loans will I receive a lower salary?)

[Gazi]

I have some questions regarding taxes if anyone is in the know:

Someone told me soldiers don't pay tax for anything. Is this true? (ie If I buy a car or house am I exempt from paying taxes? How just a general item like a notebook or clothing?)

Does anyone know how to determine the amount of taxes that's deducted from a soldiers base pay? (assuming that food and housing are not taxed)

Does it depend on the home state? Would the soldier be exempt from any of the taxes civilians pay (ie medicare, etc)?

Thank you

[lifeafter40]

Your base pay will be taxed just as any other paycheck would be to include SS, medicare, etc. State tax will be withheld according to your state of residence (whatever you claim).

There are exceptions to the taxes for those serving overseas or in combat zones.

As far as sales tax...I believe the post/base exchanges and commissaries are still tax free, but you will still pay sales tax anywhere else just as civilians do.

[jeckrn, BSN, RN]

your base pay will be taxed just as any other paycheck would be to include ss, medicare, etc. state tax will be withheld according to your state of residence (whatever you claim). true, some states only make you pay if you are stationed in the state, like pa, and others like ny (the vampire state) no matter where you are stationed.

there are exceptions to the taxes for those serving overseas or in combat zones. not all overseas locations are exempt from federal & state income taxes.

as far as sales tax...i believe the post/base exchanges and commissaries are still tax free, but you will still pay sales tax anywhere else just as civilians do.

the commissaries you pay a 5% surcharge on your purchases before taking off coupons. but for the most part you will still be saving 30%. the exchanges you need to be careful what you buy. some products are cheaper, mainly electronics, but others are more expensive. but you need to figure in the local sales tax.

[jeckrn, BSN, RN]

i have some questions regarding taxes if anyone is in the know:

someone told me soldiers don't pay tax for anything. is this true? (ie if i buy a car or house am i exempt from paying taxes? how just a general item like a notebook or clothing?) depends on what state you are stationed in. but for the most part you will be paying local sales tax. what you will not be paying is local tax on your vehicle every year if you do not have it registered in that state or if the state exempts you. plan on paying local property taxes on your house.

does anyone know how to determine the amount of taxes that's deducted from a soldiers base pay? (assuming that food and housing are not taxed)

does it depend on the home state? would the soldier be exempt from any of the taxes civilians pay (ie medicare, etc)?

thank you

also see earlier post from lifeover40

[carolinapooh, BSN, RN]

No one is exempt from Medicare and OASI (Social Security) tax. Everyone pays that.

Generally the tax rate is somewhere around 30% for most folks, depending on whether or not you pay state income tax and what tax bracket you fall into.

[Gazi]

Thanks.

How long does it typically take to move up through the ranks? (O1->O2-> etc.)

What factors determine who is promoted in rank? Is this purely based on time, or can someone with minimal years be promoted much quicker than the rest? (ie O3 within 2 years, or O6 within 6 years, etc.)

Other than pay, what are the benefits of moving up through the ranks?

[carolinapooh, BSN, RN]

O1 to O3 are "given" to you. You have two years time in grade (TIG) at O1 for O2, then two years TIG at O2 for O3. There are set amounts of time you must spend in each rank after O3 in order to be eligible to apply for the next rank; there are also different responsibilities, jobs, and education levels you must achieve in order to make that package competitive.

You won't be making O6 in six years, I can assure you - in any branch.

[Enthused RN, BSN, RN]

Great information, thank you everyone! I have had my eye on an expensive accelerated BSN program ($55k) and I wanted to join the AF afterwards but I thought I would be too "broke" from paying student loans to even consider that.

[just_cause, BSN, RN]

mx, even if the military could repay your loans I would recommend NOT doing an expensive program and assuming the commission will be a sure thing - people get disqualified, number of billets don't always support your timing, and loan repayments are not a 'sure' thing as incentives change or can change on an annual basis. I'd only do a program you could shoulder the burden of cost should the military not work out.

v/r

[Enthused RN, BSN, RN]

After I hit the submit button I realized I should have put a short disclaimer. I know I'm taking a risk in thinking about expensive BSN program and commissions are not sure things. It's just it gives me another option to consider in addition to working for the VA, health service, county, numerous other employers ...

[just_cause, BSN, RN]

mx, I had a similar choice a ways back.. 2nd degree accel bsn vs an ADN or standard BSN... in hindsight I'm VERY happy with choice to get the BSN. It afforded me more time to learn a lot of critical skills, time to gain part - time nurse tech employment (which at this time is one of the few ways to really transition into a job at graduation with economy as it is) and the lower cost provided flexibility rather then have limitations imposed by big student loans that required payback. That is journey... best of luck with accel route. Sounds like you have your plan setup with multiple routes.

v/r