What Student Loan Repayment Options/Perks Are Available To Officers?

2018-09-05T14:39:06-04:00

Officer Loan Repayments Options:

Back Story: Currently a Cadet in Army ROTC and was awarded a 3-year scholarship in 2016 and the Army paid and is currently paying for the remainder of my tenure here at ERAU. Unfortunately, the Scholarship didn't cover my first year in school so I inquired debt (not a small amount either). I understand that some enlistment contracts pay back student loans, this isn't the case for ROTC commissions. So after becoming an officer is there a program of some sort that will assist me in loan repayments or even possibly relieve me of the debt?

Here is my current projected career path (in case it assists in providing an answer of some sort): I'm set to commission in May of 2019, God willing, I will go through the Education Delay Program (which I'm not sure if it will pay for my Seminary or not) so that I may study for my Master's Degree in Divinity to become a Chaplain. Upon completing my requirements to become a Chaplain I wish to serve on Active Duty.

Extra Information you don't need to read but will give you some more insight into the situation: If I'm not accepted for an Educational Delay, I may get picked up for an Active Duty slot in a normal branch (then I wouldn't really have to worry about the loans, because, I believe I would be paid more than well enough to pay them back without a struggle). Which I'm ok with, later down the line I would work on the requirements necessary to become a Chaplain in the future. However, if I don't get accepted for an Educational Delay or get picked up for Active Duty Slot I would just go into the reserves and then enter into the Chaplain Candidacy Program and become a Chaplain anyway.

Response by CW5 Private RallyPoint Member made Sep 5 at 2018 2:59 PM

2018-09-05T14:59:13-04:00

As far as I know, there isnt anything available once you have your commission. What you can do is have the loan deferred so it no longer accrues interest and payments are suspended. I did that while I waited for my LRP to kick in. The only requirement was to be active duty.

Response by MAJ(P) Private RallyPoint Member made Sep 5 at 2018 3:09 PM

2018-09-05T15:09:29-04:00

USAA usually has a starter loan up to $25,000 with a very low interest rate less than 2%. Now that will only help you if u commission upon graduation. You don’t start paying it back until about 3 months after you are on active duty. I am pretty sure you need to be in your last year which you are so that shouldn’t be a problem. If you are granted an ed delay then that would get rid of that option. Also i assume u are speaking with a Chaplain Recruitee bc they can help you find some other potential ways as well. Where are you located? You can contact my old stomping ground in TX. MAJ (CH) Browne is awesome. [login to see] they will get you to her if you are not speaking with one already.

Response by LTC Private RallyPoint Member made Sep 5 at 2018 3:19 PM

2018-09-05T15:19:38-04:00

There are no options for past balances accrued for officers, but I do pray you get picked up for Ed Delay and get your MDIv.

If you get AD you can work to earn your MDIv using TA, and work in a chucrch pastoring while on AD and when you get your degree you can have a packet ready to transfer to the Ch Corps.

Your USAR plan will work very easily.

I would not defer your payments and start paying the loans off now. I deferred through two masters and two start up PhDs and it made me incur interest only for those months in school but extended my payments to almost 20 years...It sucked so start now and get them gone as quickly as possible. I would set aside 5% of your take home pay to put against the loans and they will not be a burden to you again.

Lastly-learn from this, there is no reason to go in debt for school again if you work the system correctly!

Good luck!

Response by Maj John Bell made Sep 5 at 2018 7:02 PM

2018-09-05T19:02:22-04:00

OK I guess it is on me to be the jerk.

Delayed gratification is an admirable thing. You acquired a debt. You gave your word to pay it back. The debtor lived up to their word. Be a man of your word. Don't take the educational delay. Sacrifice, live below your means, pay back your debt as quickly as possible. It is the "Chaplain" thing to do. Would any other path give your spiritual shepherd more credibility? Having "Regular Guy" military experience will also give you more credibility with your soldiers.

2 Peter 1:5-8
"For this very reason do your best to add goodness to your faith; to your goodness add knowledge; to your knowledge add self-control; to your self-control add endurance; to your endurance add godliness; to your godliness add Christian affection; and to your Christian affection add love. These are the qualities you need, and if you have them in abundance, they will make you active and effective in your knowledge of our Lord Jesus Christ."

Response by SPC Jeff Hogan, M.S., M.P.S. made Sep 5 at 2018 7:43 PM

2018-09-05T19:43:46-04:00

Whatever you do keep your loans with the fed government. Should you go into a public service job your loans can be forgiven after ten years. Or if you get injured while on duty you can have them forgiven if you become 100 percent service connected.

Neither help you if you transfer your loans to a private provider.

Response by CPT Private RallyPoint Member made Sep 9 at 2018 6:37 PM

2018-09-09T18:37:42-04:00

I agree with LTC Bornn. I encouraged both of my sons to start paying their loans back while they were still in school. Even if it's $50 a month or $100 a month whatever you can afford. Just start chopping at that tree one swing at a time. Every little bit helps and it's just like eating a whale, one bite at a time. My sons both paid off their student loans prior to graduation by using this strategy. However, if you still have the loans when you are commissioned, put them into a deferred status and you can still make payments, but not have to pay any interest on them. That's what I did. I didn't pay a penny more than I borrowed over the course of the loans because they were on deferred status until they were paid off. Every payment goes to the principal.

Response by LT Private RallyPoint Member made Jan 6 at 2019 1:55 PM

2019-01-06T13:55:47-05:00

PM me if you'd like to talk about various avenues into AD Army Chaplaincy. I was an ARNG Chaplain Candidate and then a Guard Chaplain before I moved to AD Navy. There are various types of scholarships and funding if you get your Ed delay and get picked up as a USAR chaplain candidate