Military Pay Off Loans

lionstudent · Dec 13, 2008

LESS 30%......taxes

....Wait a minute, U get taxed 30% on the student loan repayments also???...I knew there was a tax for the ascession bonus....Gosh!!!

olderthandirt2 · Dec 13, 2008

LESS 30%......taxes
....Wait a minute, U get taxed 30% on the student loan repayments also???...I knew there was a tax for the ascession bonus....Gosh!!!

I believe so....

JDCitizen · Dec 13, 2008

I believe so....

Ditto from what I have read :-(

Yep you end up giving some time for free and still have some debt.

just_cause, BSN, RN · Dec 13, 2008

That is correct... Your loan repayment is only based off the initial principle of your loan - 28% tax... and first payment doesn't hit til end of year 1 completion in the army.

So if you have 50K in loans you could get 31K payback at the end of year 1 in army and you will still owe the 19k remainder plus the interest that accumulated to that point....

Please note: this is my understanding as they say.. IMHO

lionstudent · Dec 13, 2008

That is correct... Your loan repayment is only based off the initial principle of your loan - 28% tax... and first payment doesn't hit til end of year 1 completion in the army.
So if you have 50K in loans you could get 31K payback at the end of year 1 in army and you will still owe the 19k remainder plus the interest that accumulated to that point....
Please note: this is my understanding as they say.. IMHO

Hey Just Cause, thanks for all the info...U seem to be highly informed...I have another question...I am prior service (4 yrs) AD plus active reserve (4 yrs)...my question is, does my AT (active training) during my reserve time count towards my "active time" to give me more than 4 yrs total prior service....I'm asking this so I can b sure I qualify for O-1E thru O-3E status....Thanks Bro....

just_cause, BSN, RN · Dec 14, 2008

Lionstudent, you planned this out didn't you.... for the O1/2/3E all you need is 4 years and 1 day of 'time in service'... my understanding is reserve 'drills' count up day by day and so should your active training... so as long as you clear that 4 yr + 1 day mark you should be golden for the "E" status on your paycheck. (Making a guess that when you transition out you have a dd214 type deal that will have the cumulative effect that should tallied up for your change to RegArmy).

v/r

midlifecareerchg · Dec 14, 2008

hey just cause,

When you say they will pay off student loans, does that include loans I may have accumulated before enlisting? I have loans from getting that MA in Sociology....

If yes, then how do I apply? I have to re-enlist as a reservist due to my age, but if I transfer to active later, how would I apply for the student loan pay off?

Sandy

just_cause, BSN, RN · Dec 14, 2008

The loan repayment incentive for 'nurses' pays back the nursing degree.

You have mentioned 'enlisting' in a non-nurse capacity and you could use the army's loan repayment program for that if it's what you choose to do...... i don't know about the new gi bill - but the old one if you chose the loan repayment you waive your gi bill benefits.

Once again if you want to be an RN I do not suggest enlisting and then thinking it facilitates and RN degree - as it will be almost impossible to do while active duty.

midlifecareerchg · Dec 14, 2008

I am joining the reserves, not active duty.

I was thinking about switching to active duty later, especially if that meant getting some of my old student loans paid off. But it sounds like it may only be something a person can do as part of the enlistment package.