What's the interest rate on payback of an Enlistment Bonus?

2021-03-24T00:06:35-04:00

I got out of the Air Force several years ago on what I was told would be a medical discharge where I was assured I would have no debt and would get assistance. After the fact, I discovered that my discharge was listed as a "Personality Disorder" and that I had to repay my enlistment bonus, but I was given no information on the interest rate or exact amount.

Does anyone know what the interest rate on this is?

Response by MAJ Byron Oyler made Mar 24 at 2021 12:20 AM

2021-03-24T00:20:05-04:00

Whomever is making you repay the bonus will provide all of this information and no one on here can really give you any good info with the limited details you have provided.

Response by SFC Private RallyPoint Member made Mar 24 at 2021 3:15 AM

2021-03-24T03:15:50-04:00

There is no interest rate. You will pay back a prorated portion. If you served one year of a three year enlistment then you pay back two of those years.

However, you'll pay back the pre tax amount, not the post 22% tax deduction amount you received

Response by MSG Manuel Garcia made Mar 24 at 2021 8:29 AM

2021-03-24T08:29:54-04:00

A little monster hidden in the closet came to visit me as I retired. That was the SSB I received back on 92. Now our excellent DFAS is taking 50% of my retirement pay until I pay back the money they gave me back then. As far as I know, there is no interest rate. Best advise is call DFAS [login to see] . Please make sure you have lots of patience because you will need it for the waiting time, and being passed around because no one seems to know anything.

Response by SSG Edward Tilton made Mar 24 at 2021 1:04 PM

2021-03-24T13:04:21-04:00

Go to the VA, Get a rating. If it is over 30% you fill out DD149 and submit it to the Air Force Board ofCorrection of Military Records for Medical Retirement. This will cause them to re examine your case. There is no telling where it goes from there