MIL Officer loan after ROTC

Discussion in 'On Topic' started by shiba, Jan 26, 2007.

  1. shiba

    shiba Active Member

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    I was wondering if anyone that came from ROTC can gime me some insight on the 25k loan that they offer to new officers. All i know about it is that there is only a 2% interest rate. I was wondering if it would be a good idea to take that loan out to pay off all my student loans and focus on paying this off. Is there any downside to it? Are there also any stipulations to the loans? (ie 18 year contract)
     
  2. ManinCamo

    ManinCamo I wear big boy pants.

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    Its a 2% unsecured loan from USAA... there is ZERO reason to not take this loan. Even if you don't need it for anything, you can earn more by sticking it in a bank account, or even more through investing. The only catch is you have to have your military pay deposited into your USAA account. All military pay is direct deposit. USAA is a fantastic bank, so it's not like that's a big deal.

    I used mine to buy a new car -- not the best investment choice, but a 2% car loan is rarely beaten.
     
  3. nadahonda

    nadahonda Member

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    No stipulations. It's legit. USAA is probably one of the best companies in the world. They aren't going to try and screw you over.
    If you have student loans, then I would definately pay them off with the loan.

    The only downside is IF you take the FULL 25K, your payments will be about ~1/4 of you base pay. So I would only make the loan for the amount you need.
    It's a great offer. You'll probably never find another offer like that for the rest of your life. But don't be stupid and blow it all on needless items.

    I took the full amount but I haven't spent a single penny. I got the full amount to boost my credit so I can get a house later on, and I'm making money off the interest. But I plan on repaying the majority if not all of it back as soon as I have a steady paycheck.
     
  4. shiba

    shiba Active Member

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    how much would those payments be per month?
     
  5. JSin

    JSin New Member

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    I pay about 438.30 a month...
     
  6. nadahonda

    nadahonda Member

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    It depends on how early you get the loan. Because even though you don't have to pay until 90 days after you commission. That money is still accruing interest. I think I was quoted at $446.
     
  7. Gatsby

    Gatsby New Member

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    I pay 442 per month.
     
  8. 3MTA3

    3MTA3 er skotin mit mein ambatt

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    I remember back in '98 the best a new O-1 could get was a 2% unsecured $5K loan from Navy Mutual Aid. USAA only would help out with the purchase of a first vehicle + upto an additional $3K @ 7%. Take the free money and invest it.
     
  9. SweetDaddyO

    SweetDaddyO we need a montage!!

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    one of the best deals out there - you'll probably never be offered a loan at that interest rate, for that amount, ever again.

    just make sure you have a useful way to spend (or invest) it.
     
  10. shiba

    shiba Active Member

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    I'm assuming you guys are on a 2 1/2 to 3 year plan. Are they flexible with the length of time it takes you to pay them back?
     
  11. Gatsby

    Gatsby New Member

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    You can always pay it back early, or take out less money. But it's a 60 month loan.

    Also if you fail out of ROTC through PT, Grades, ETC... you default on the loan (18%). The exception is if you are medically dq'ed, or other reasons out of your control.
     
  12. jmx2323

    jmx2323 OT Supporter

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    i got 10k from that loan, did'nt need the full 25 but I should have done it simply for the intrest from the savings acct, it would more then pay for the 2% intrest you are charged
     
  13. RecklessYouth

    RecklessYouth godamnlurker

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    I got the USAA loan when I was in OCS. Awesome loan, I used mine to buy a car as well. You just cant beat 2% interest.
     

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