Taking out extra loans when on HPSP

[natedizzle]

I'm going to be a first year with the HPSP through the Air Force. Would I be able to get the subsidized Stafford loan? If so are there restriction to what you can do with the money? Say, put it into a CD for 4 years?

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[HumptyDumptyMil]

I'm going to be a first year with the HPSP through the Air Force. Would I be able to get the subsidized Stafford loan? If so are there restriction to what you can do with the money? Say, put it into a CD for 4 years?

I believe it depends on the school you go to. I was able to receive both subsidized and unsubsidized loans. My financial aid lady at school told me I can do anything I want with the money because "they will never know"...

and don't forget to look into the commissioned officer loan through USAA. $25000 max at 2% interest. I was making car and credit card payments at an interest much higher, so I consolidated with this loan and saved lots of money in the long run. The only downside is that you have to make payments right away, which still wasnt bad for me because I was already making larger payments for the car and credit cards

 

[Droopy Snoopy]

I believe it depends on the school you go to. I was able to receive both subsidized and unsubsidized loans. My financial aid lady at school told me I can do anything I want with the money because "they will never know"...

and don't forget to look into the commissioned officer loan through USAA. $25000 max at 2% interest. I was making car and credit card payments at an interest much higher, so I consolidated with this loan and saved lots of money in the long run. The only downside is that you have to make payments right away, which still wasnt bad for me because I was already making larger payments for the car and credit cards

You wouldn't happen to have a link for this would you? I just surfed around USAA and didn't see it. I do have my home loan through them, though, which I highly recommend to the OP if s/he plans on purchasing a home. OP, you can take out as many loans as you want, but many schools include HPSP funds as part of your overall allowable financial aid. Thus, without HPSP you can take out say $36,000 in Stafford loans; with HPSP you can only take out $22,000 (or whatever the cap minus the scholarship is). Of course you can take out as many private loans as you can get approved for, but some of these might not allow you to defer until after residency.

 

[met19]

I believe it depends on the school you go to. I was able to receive both subsidized and unsubsidized loans. My financial aid lady at school told me I can do anything I want with the money because "they will never know"...

and don't forget to look into the commissioned officer loan through USAA. $25000 max at 2% interest. I was making car and credit card payments at an interest much higher, so I consolidated with this loan and saved lots of money in the long run. The only downside is that you have to make payments right away, which still wasnt bad for me because I was already making larger payments for the car and credit cards

Some schools like mine will catch you with the loans. What they do is subtract the scholarship from the total cost of attendance. I was able to take the difference out in loans for 2 reasons.
1) Stipend is taxed
2) Stipend is less than cost of living in NYC.

USAA loans? I thought you needed to be active duty or a retiree to get them. HPSP is reservist who doesnt qulaify. If I am wrong, I would love to pay off some of my higher interest private school loans with them.

To the OP- I would not do HPSP again for a multitude of reasons. If you really want milmed service FAP is a better option.

 

[BomberDoc]

I'm going to be a first year with the HPSP through the Air Force. Would I be able to get the subsidized Stafford loan? If so are there restriction to what you can do with the money? Say, put it into a CD for 4 years?

I took out the max loans while in med school and bought individual stocks. Very risky? Yes. Very profitable in 1999-2001 timeframe? Think > 1000% return. Think CSCO when they were on top of the world. I know I'm damn lucky to have sold it all (almost) before the bubble burst.

 

[Gastrapathy]

I took out the max loans while in med school and bought individual stocks. Very risky? Yes. Very profitable in 1999-2001 timeframe? Think > 1000% return. Think CSCO when they were on top of the world. I know I'm damn lucky to have sold it all (almost) before the bubble burst.

Would have been a bad move today.

 

[HumptyDumptyMil]

Call this number: 1-800-292-8302 and ask for the special loan for commissioned officers and they will give you all the information you need. I'm always impressed with USAA service

 

[Droopy Snoopy]

Call this number: 1-800-292-8302 and ask for the special loan for commissioned officers and they will give you all the information you need. I'm always impressed with USAA service

Just an update on this. I called and was informed that as a medical student one has to be at least within 18 months of graduation and have a USAA checking account with direct deposit of pay/stipend. Additionally, it is not an automatic qualification, but the guy I talked to said it was pretty rare to deny someone if they at least had a vehicle or something to secure the loan with. The direct number to this department is (800) 531-4610.

 

[DD214_DOC]

Just an update on this. I called and was informed that as a medical student one has to be at least within 18 months of graduation and have a USAA checking account with direct deposit of pay/stipend. Additionally, it is not an automatic qualification, but the guy I talked to said it was pretty rare to deny someone if they at least had a vehicle or something to secure the loan with. The direct number to this department is (800) 531-4610.

That's weird, I was never told I have to be within 18 months of graduation. Maybe the requirements have changed since I applied back in June.

Also, I was able to get the payments deferred for 4 months. I would call and talk to someone different, unless the program has changed in the past few months.

Regarding taking out additional loans, the others are correct in stating it depends upon the school. Some schools count the stipend, which in my opinion should not be done because it is taxable income, and some don't. The amount you can take depends on the annual budget set by the school minus your awards. I take out the full amount and get back roughly $23,000 a year. I use some to pay off higher-interest stuff, some goes into savings, and some goes into investments.

 

[BigNavyPedsGuy]

FYI I just opened a checking and savings account, and then spoke with someone about the comissioned officer loan. YOU HAVE TO TAKE OUT THE LOAN WITHIN 18 MONTHS OF BEING COMISSIONED. Being a Sr. Medical student, I was comssioned the day I signed my HPSP contract and therefore am not eligible for the loan. . . . . I'm pissed .

However, the service on the call was great, and I will still use them for car insurance and car loan, b/c I can move and not have to find new coverage.

 

[Droopy Snoopy]

FYI I just opened a checking and savings account, and then spoke with someone about the comissioned officer loan. YOU HAVE TO TAKE OUT THE LOAN WITHIN 18 MONTHS OF BEING COMISSIONED. Being a Sr. Medical student, I was comssioned the day I signed my HPSP contract and therefore am not eligible for the loan. . . . . I'm pissed .

However, the service on the call was great, and I will still use them for car insurance and car loan, b/c I can move and not have to find new coverage.

After reading this response and the one before it, I decided to call USAA back and find out what the deal was (since I will be outside of the within-18-months-of-commissioning-window next month). I talked with a different guy, and was again told that LINE officers are eligible for this loan within 18 months of commissioning. Commissioned officers in an advanced degree program like us are eligible within 18 months of graduation. PedsGuy, give them a call back and verify this if you wouldn't mind, and if they still say you're not eligible try to get them to send you the requirements in writing (and please post it here). I've never had a problem with USAA, but man it seems like they either don't know what they're talking about on this one or are giving us the run-around.

 

[BigNavyPedsGuy]

Hooray! Hooray! Tic's right. I just had to drop the phrase "advanced degree program". You have to be 1) within 18 months of graduation 2) have a checking account with them and 3) get all of your military pay directly deposited to that account.

I'm all warm and fuzzy inside

 

[met19]

Hooray! Hooray! Tic's right. I just had to drop the phrase "advanced degree program". You have to be 1) within 18 months of graduation 2) have a checking account with them and 3) get all of your military pay directly deposited to that account.

I'm all warm and fuzzy inside

the idea of 2 percent for 25k is nice. The question I think is also payback. My own loans are at a higher rate, but can be deferred for the amt of time I am in residency. I called USAA and payback begins within 90-120 days of the origination. Its nice a loan if 1) you need some moving, vacation, or down payment cash 2) plan on paying back your own loans during residency anyway. Me on the other hand, probably will not pay back my loans till after residency and therefore the loan does not make sense.

t-10 days till match

 

[Droopy Snoopy]

the idea of 2 percent for 25k is nice. The question I think is also payback. My own loans are at a higher rate, but can be deferred for the amt of time I am in residency. I called USAA and payback begins within 90-120 days of the origination. Its nice a loan if 1) you need some moving, vacation, or down payment cash 2) plan on paying back your own loans during residency anyway. Me on the other hand, probably will not pay back my loans till after residency and therefore the loan does not make sense.

t-10 days till match

I'm planning on paying off our two vehicles, both financed at around 6%. That'll also let me drop the collision insurance on one of them (the other I'll keep for a few more years). I'll have a few grand leftover that I'll either pay off some mortgage principle (financed at 6.15) or put back for the residency app process.

 

[met19]

I'm planning on paying off our two vehicles, both financed at around 6%. That'll also let me drop the collision insurance on one of them (the other I'll keep for a few more years). I'll have a few grand leftover that I'll either pay off some mortgage principle (financed at 6.15) or put back for the residency app process.

pay off the mortgage...equity is also a positive!