20,000 CSAB for HPSP

[MaximusD]

Now that the AF has instituted this, I am finding myself with a dilemma seeing as I will be accepting a 3-yr HPSP scholarship. Although Ridiculous says that the contract is somehow different my recruiter has told me that accepting the 20k CSAB bonus will add a year to my service obligation. I would like some clarification if this is not the case. It hardly seems like 20k is enough to warrant an extra year of service obligation.

Thanks in advance and for your comments.

---

Members don't see this ad.

 

[NavyFP]

Now that the AF has instituted this, I am finding myself with a dilemma seeing as I will be accepting a 3-yr HPSP scholarship. Although Ridiculous says that the contract is somehow different my recruiter has told me that accepting the 20k CSAB bonus will add a year to my service obligation. I would like some clarification if this is not the case. It hardly seems like 20k is enough to warrant an extra year of service obligation.

Thanks in advance and for your comments.

It depends on how the AF is handling it. The Navy is treating it as a minimum service obligation, so as long as you do your internship on active duty, your covered and owe no additional time. With the AF propensity for deferals and outservice training, that could indeed add another year to your time.

 

[mtthwscott1]

I think the reason(s) to take the 20K for another year of service (if you're in with the three year scholarship) is if you are pretty sure that you'll be doing another year of service anyway - incurring another year by taking a long residency (5+ years), by taking a fellowship (not likely), or by enjoying it enough to stay in for another year or two.

 

[Milamber]

I say take the 20K and invest it while you are in school This way you have a nest egg in case unexpected events crop up while you are in school and if not you have a nice chunk of change to use for your retirement down the line.

 

[elderjack21]

If you could live on the stipend and ADT pay along each year while in school, you should be able to stretch that 20k out over the 4 years and use it to max out your IRA contributions each of the 4 years while you are in school.

The retirement benefits of the military are not very imressive if you are a physician (at least from my point of view), but I think one of the benefits of HPSP and the extra pay while in residency is that you can get a leg up on saving for retirement down the road and let the power of compounding interest run its course.