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USAA Loan/New Officer

Discussion in 'Military Medicine' started by TAbrown, 07.14.06.

  1. TAbrown

    TAbrown Junior Member

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    SDN Members don't see this ad. (About Ads)
    Does anyone know if the USAA loan, which is fixed at 2.5%, for newly commissioned officers is available for HPSP students also?
  2. HooahDOc

    HooahDOc

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    I wouldn't think so. The "income" of the HPSP student is far, far below the income of an AD O-1, which I surmise is the basis for the fixed rate.
  3. AFSmiley

    AFSmiley Member

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    My guess is the only way they'll give it to you is when you go active duty after medical school.
  4. kaikai128

    kaikai128 Yes SIR. ;-)

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    I got a loan for newly comissioned officer's thru USAA. Mine is not @ 2.5%, I think it may be 3.5%...but that was a little while ago. Call them...They are the only ones that can tell you for sure if you are eligable and at what rate. Make sure you have it all set up within your first year of comissioning.
  5. pgg

    pgg Laugh at me, will they? Moderator

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    Don't know, but when I came in, Navy Mutual Aid Association had a program similar to that ... a loan for new officers, something like $2500 at 1.5%, repaid over 30 months by allotment.

    It's also free money, at worst you could leave it in a CD or money market and profit.
  6. USAF_O

    USAF_O Junior Member

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  7. HooahDOc

    HooahDOc

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    Where is this loan found at? I am in my USAA account and do not see any "new officer" specific loans. Also, what are the credit requirements? (min FICO etc)
  8. USAF_O

    USAF_O Junior Member

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    You'll have to call them and ask for the loan. For officer trainees, the loan is no questions asked (no credit check).
  9. HooahDOc

    HooahDOc

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    What about current officers? I find it hard to believe they're just going to give 25K to anyone regardless of creditworthiness.
  10. USAF_O

    USAF_O Junior Member

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    good question..i have no idea... best thing to do is to call them and ask.

    it really is a great deal if you can get it. if you put the money back into their savings account, you'll get an extra 1% on the APY (total is about 5.2). remember you borrow the money at 2% APR, and the yield is at about 5.2% APY. APR does not equal APY.
  11. HooahDOc

    HooahDOc

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    Ok, I just got off of the phone with them.

    They DO look at your credit, but have different criteria than normal lenders. Naturally she would not tell me what it was.

    I have crappy credit because of applying to med school, and my wife has a lot of debt but good credit. However, I was still approved for $22,000. Most of the money I had made out as vouchers to the creditors, so I am now credit-card debtless. I did get some money back as well.

    I love USAA.
  12. Heeed!

    Heeed! On target, On time!

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    So what is the official name of the loan program I should call and ask for?????
  13. USAF_O

    USAF_O Junior Member

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    that's odd, they didn't ask for my credit history when i signed up... it was pretty much no questions asked... what was the rate they gave you?
  14. Heeed!

    Heeed! On target, On time!

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    HoohahDOc and USAF_0, what is the name or type of loan you are talking about from USAA??? I could use the $$$! Thanks.
  15. USAF_O

    USAF_O Junior Member

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    I got the USAA Pre-Commissioning Loan..

    http://airforceots.com/portal/modules.php?name=Forums&file=viewtopic&t=4423

    About USAA: USAA is a Fortune 200 financial services company that requires military affiliation to join. They offer products such as Auto Insurance, Property Insurance, Life/health Insurance, Banking, and Investments.

    USAA Eligibility: Generally speaking, to be eligible for USAA, you must actively serving in the military or be in pre-commissioning status, retired from the military, or a dependent of a USAA member. Check www.usaa.com for specifics. Since you are here at AirForceOTS.com, we'll proceed assuming you are currently serving or in pre-commissioning status.

    USAA Pre-Commissioning Loan: USAA offers a Pre-Commissioning Loan for those selected for OTS. Details of the loan are as follows:
    - Amount: any value up to $25,000
    - Use: whatever you choose; they’ll ask for a ‘reason’ as a formality
    - The loan is unsecured: no collateral required (read: like cash money)
    - APR: as of November 2005, fixed 2%
    - Payments: over 60 mos (5 years)
    - The loan is a one-time shot. I believe you are eligible to apply from the point you receive your class letter up to 1 year post-commission date. Call for specifics.
    - You can chose to defer loan payments up to 3 months post-commission date. The interest will accrue, but at 2%, this is reasonable. You can make payments regardless of the loan being deferred.

    Loan Requirements:
    - You must set up a USAA bank account
    - Loan amount gets deposited into checking account when finalized
    - Must set up your mil-pay (primary income, military payroll, whatever) to direct deposit into said account
    - Loan payments are automatically withdrawn from said account

    Furthermore, USAA offers a credit card as overdraft protection with a good rate (~prime + 2%), up to $15 per month in ATM fee refunds, and no-fee checking/saving/electronic bill pay. Any (hard-copy) check deposits are accomplished via mail. Of course you can open up a local bank account or use the BX for check-cashing services if this is a big problem.

    It takes about 1/2 hour over the phone to initiate the loan, checking, savings, and credit card. They will run your credit, reportedly as a formality; the rate is 2% regardless. USAA will overnight the loan paperwork and include an overnight prepaid return envelope inside. As soon as USAA receives your signed loan paperwork and processes it, you get your money deposited into the USAA account (~2-3 days). The other checking/savings/credit card paperwork takes about 7-10 days.

    How to apply:
    Call 1-800-531-2265, (210-456-8000 in San Antonio)
    Monday - Friday, 7:30 a.m. - 10 p.m. CT
    Saturday, 8 a.m. - 6 p.m. CT
    Sunday, 1 p.m. - 6 p.m. CT

    Some folks (civilians) have called to be denied the loan (i.e. you are not currently in the service). Our advice is to call with the following approach:

    "Hi, I am going to get commissioned in the USAF. I'd like to apply for the pre-commissioning loan. Per my OTS class letter, my commission date will be xxxxxx. Also, I understand I can defer payments up to three months post-commission date. I also understand that I have to change my direct deposit to your bank. How can I begin?"

    The first time one of our members called, he was told that since he was active-duty, he could only defer payments up to 3 months after the loan paperwork was completed (not, post-commission date). When he called back to apply for the loan (and spoke to a different rep), they simply deferred him 3 months post-commission date.

    The take-home lesson here is don’t volunteer too much information. Talk to the rep very specifically about the ‘pre-commissioning’ loan and be sure to notify them of your projected commissioning date. Of course, don’t lie, or cheat the system, however since different reps give different answers, make sure to call until you speak with the rep who gives you the accurate information.
  16. Heeed!

    Heeed! On target, On time!

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    The link you posted is broken. I don't have access to whatever system the website is on. And since I'm already commissioned, I guess I wouldn't be eligible for pre-commissioning loan.
  17. USAF_O

    USAF_O Junior Member

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    hmmm... the link worked for me when i clicked on it...

    it never hurts to try... it's almost like free money! :)
  18. HooahDOc

    HooahDOc

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    Hey guy,

    it's the pre-commissioning loan. The name is a bit misleading as I was eligible for it. You have up to a year after your commissioning date to get it. There is no direct number to call. I can't remember if someone posted this on here or not, but call the normal number, then ask for "Loans", and then, "other". Then ask about the "pre-commissioning loan". I actually asked for the, "New officer loan or whatever" and they knew what I was referring to. :D

    I got the fixed 2% rate. I basically saved myself a ****load of money and now have no revolving debt, only installment debt. It should be pretty easy to fix my credit now.

    USAF,

    They probably pulled your credit anyway, I don't know. I had to provide income and some other stuff, but that may have been because I was already commissioned, my credit, or both. I got the impression they really only look for really bad stuff like bankruptcy, liens, judgements, etc.
  19. USAF_O

    USAF_O Junior Member

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    glad it worked out for you!

    isn't it nice to be able to defer the payments for 6 months? :D
  20. HooahDOc

    HooahDOc

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    USAA is crazy but I love them.
  21. El_Medico

    El_Medico New Member

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    I just got it. $25,000 2% Thanks for the heads up!
  22. USAF_O

    USAF_O Junior Member

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    take that money to vegas and bet it on one hand of blackjack. be sure to double down if the dealer is showing a two, three, four, five, or six! :cool: thank me later!

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