Loan repayment for Army Nurse

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Hey,

I just got selected for the Army Nurse Corps, and want to choose the Loan Repayment.. has anyone chose this and does it work out okay? I have a draft of my contract and it says the army only will pay back bank loans OR government loans, and only 40,000 at the end of your first year ONCE. However my recruiter told me all loans would be paid back, up to $120,000, 1/3 at the end of each year for 3 years. I have big loans from both nak and gov.. anyone been through this and can you tell me your experiences.. I know nothing is final unless it is in writing and you can't believe everything your recruiter tells you so I'm trying to get this figured out..

Thanks!!

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Specializes in Pediatrics.

I'm not sure about the 120K vs 40K. But do be aware that the loan repayment will be taxed at 28%....So if they are paying back 120K only $86,400 will actually go towards the loans and $33,600 will go to the Fed Gov't for taxes. Which will still leave you with the $33,600 to pay back on your loans. Just a heads up in case you weren't already aware of that.

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Congrats on getting accepted! I should find out next week if I am in... I too am going for the full loan repayment option and I didn't know you have to wait until your first year is complete before the army starts to pay.... I was under the impression that $40k is paid each year, excluding taxes. I'll have to ask my recuiter about this. I graduate May 2010 and I know you have a 6 month deferrment and I would probably go to the August OBLC.

Is your duty station in your contract? What places did you list?

When are you looking to go to OBLC?

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thanks :-) in the contract it does say there is 28% tax on the loan money they give you.. after reading it with my recruiter it does say 40k for up to 4 yrs but the first year is one year after your arrival day at your first assignment after OBLC.. I haven't listed my choices yet.. I should be going over final papers and comissioning in a week or two.. But i am looking to go this January 2010

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The payments you will have to make during that first year, before the Army pays out the first 40k, is part of the 28% of those loans you will be responsible for anyway, so it is not as bad as it sounds. Although it would be nice to be able to pay your part at the end when hopefully you have a couple of promotions to boost the income some ;)

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