Active Duty Student Loan Repayment?

[pilotman24]

Does the AF help out AD guyys with the repayment of their loans? Thanks

 

[Toro]

There's no repayment plan that I know of, but there is a deferment plan through the military - the interest is deferred for the first three years after you're commissioned.

 

[skyward80]

Lots of folks applying to fly means no loan help. I hear the ACP (Aviation Continuation Pay) for AD is awesome! Could change in a few years depending on what Uncle Sam wants to do. Search yahoo with those words (ACP) and it should turn something up.

Skyward80

 

[skyward80]

Don't forget the SSCRA entitles you to an interest rate cap of 6% on all debts. However, you must request an interest rate deduction--it is not automatic. Doesn't mean much right now, because if you consolidate and lock in a low rate, you should be a hair under 6% on a lot of things.

Skyward80

 

[Apache54]

Loan Repayment and ACP issues

Hello all,

As far as the Soldier's and Sailor's Relief Act, it is true that you are reduced to somewhere near 6%, but some creditors state that it is only good for the balance you had prior to active duty - while some like Chase, extend it out to any balance you might have pre- and post active duty. (I don't work for them).

There are loan repayment options for active duty, but none are for pilots. Most of these exist for medical positions (MD, DDS, RN, PA, NP, CRNA, etc...).

Rumors abound about the ACP "bonuses". Here in the army, a little birdie that lives at PERSCOM said the army is near 97% strength for warrants and that the bonus might not be around too much longer. Hell, last year no new bonus money went out anyway. He eluded to the fact that the air force, and navy might be in the same boat - but I think that's the army playing a game. Any news on this out there?

Fly safe

 

[skyward80]

Apache:

Indeed, the SSCRA only applies to debts incurred prior to joining the service. Also, joining the service must be a financial burden in order for this to apply, or if you are Guard or Reserve and you are activated, this will apply since the mil rarely pays as good as civ jobs of an equivalent nature. However, proving that the service would be a financial burden is left up to the creditor. Generally, creditors will not require "evidence" of financial burden since this is not in the spirit of the act.

ACP in the USAF is around the last I heard. However, we have a phenomenon now where pilot factories (particularly in FL and AZ) have been churning out pilots for years. Now, many of those pilots have been furloughed or cannot find a job at all. Many of them (me included)--but not most--will look to the military for jobs. I think this will alleviate the need for ACP to a large degree in the future since many of the USAF's needs will be met in the next couple of years. That's just my opinion though.

Skyward80