benefits guard vs reserves

[msml]

Ok since no one wanted to comment on the diff btwn the guard and reserves themselves...... Anyone care to compare the latest that they are hearing in reference to the benefits between the 2?

The reserve recruiter I spoke to yesterday told me that the loan repayment is being increased to 250k from 50k.

Is this now a better offer than what the guard is offering?

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[notdeadyet]

The reserve recruiter I spoke to yesterday told me that the loan repayment is being increased to 250k from 50k.

Ask for the policy document on that in writing. The Guard and Reserves tend to have very similar loan repayment benefits. Both just went up to $120K over 3 years very recently. I'd be surprised if the Reserves took that big a jump so recently. Let us know what you find out.

By the way, those loan repayment things are taxed.

 

[EMH]

Ask for the policy document on that in writing. The Guard and Reserves tend to have very similar loan repayment benefits. Both just went up to $120K over 3 years very recently. I'd be surprised if the Reserves took that big a jump so recently. Let us know what you find out.

That's exactly what I wanted to know. Is this a rumor or did it actually go up to 250k. I remember a year ago the recruiter in my state's guard said the same thing: "It's susposed to go up to $250k."

By the way, those loan repayment things are taxed.

Yes, but not directly. You'll have 40k paid towards the loans and you then are responsible at the end of the year to find the cash to pay the taxes on that income, for someone in our tax bracket that could be 10K plus. Be forewarned.

 

[notdeadyet]

That's exactly what I wanted to know. Is this a rumor or did it actually go up to 250k. I remember a year ago the recruiter in my state's guard said the same thing: "It's susposed to go up to $250k."

It actually has now. The Reserves are officially offering Loan Repayment up to $250K total, paid in yearly increments of $40K. The Guard is currently only offering up to $120K.

The word (read: rumor) is that the Guard might bump theirs up in the new fiscal year, starting in October. Though the Guard and Reserves are allowed to offer up to the same benefits, they have flexibility in how to spend their budgets and the Guard opted for other programs this year (ahem, ASR?). Word is that the Guard will equalize HPLRP with the new budget.

HPLRP is a great incentive for graduating residents, but I wouldn't look at it with too much weight as a medical student, because god knows what it will look like in 5-8 years.

 

[krust3]

250$

my recruiter told me max 160$ (40K yearly over the 4 year payback).

and why the F don't they just take out the tax on the 40K?! so now i'm gonna have to bank away 10G's a year to accomodate the payback?!?!?! thanks for making it difficult Uncle Sam seriously... what the F.

 

[EMH]

250$

And why the F don't they just take out the tax on the 40K?! so now i'm gonna have to bank away 10G's a year to accomodate the payback?!?!?! thanks for making it difficult Uncle Sam seriously... what the F.

Sorry to upset ya. I don't know that they do this from first hand experience but I have been told by a LT @ NGB that is the way it works. Just don't let it sneak up on you.

 

[EMH]

Okay, so next good question. Does anyone have a link to this information. I know a 2nd year resident with 400k+ in loans who has said to me he'd join if the military would pay off half his loans. I think he'd jump for the $250. I couldn't get him to bite on the $120.

I doubt there is any sort of incentive or bonus for me to recruit someone to the reserves if I'm NG, am I correct? Might I just as well be recruiting them to the coast guard?

 

[notdeadyet]

and why the F don't they just take out the tax on the 40K?! so now i'm gonna have to bank away 10G's a year to accomodate the payback?!?!?! thanks for making it difficult Uncle Sam seriously... what the F.

Well, in fairness, you won't be getting the loan repayment money until you're board certified, right? That being the case, if you can't bank $10K/year to get a benefit of $40K/year, you've got problems.

Also, their not taxing it up front is actually a good thing. If they paid it out to you like a bonus to an employee, you'd get taxed up to 50% and pay social security, SDI, etc. By doing it this way, you just owe income tax, right?

 

[notdeadyet]

Okay, so next good question. Does anyone have a link to this information. I know a 2nd year resident with 400k+ in loans who has said to me he'd join if the military would pay off half his loans. I think he'd jump for the $250.

Try this. Keep in mind that the $250K may only be for "critical wartime specialties." If you're interested, talk to a a recruiter.

I don't have a policy doc like I do for HPLRP for the Guard, since I'm not in the Reserves. Some sites have older limit amounts posted, just like some Guard sites still talk about $50K. But the site above is their main physician recruiting site, and I've verified it with recruiters.

The Guard is talking about bumping theirs up, as the Guard and Reserves tend to go hand-in-hand with policies and benefits. Wouldn't expect them to do so until October at the earliest, when the new fiscal year starts.

I couldn't get him to bite on the $120.

If I were him, I'd wait until he was six months from finishing residency to sign anything. Who knows how things will look then?

Also, if his only interests in the military are financial, he should probably think long and hard before joining.
d

 

[notdeadyet]

I doubt there is any sort of incentive or bonus for me to recruit someone to the reserves if I'm NG, am I correct? Might I just as well be recruiting them to the coast guard?

Correct and correct. I try to make the folks I talk to aware of both, since I'd like them to make the right decision, but at the end of the day, you root for the home team.

There's a significant enough difference between the Guard and Reserves that the current difference in the loan repayment program shouldn't be that big of a deal.

Say someone is interested in joining the military just for the cash (caveat: bad idea) and knows they want to get out after six years of drilling. They decide to join right after residency.

Reserves: They get six years of HPLRP for a total of $240K paid toward loans.

Guard: They get three years of HPLRP for a total of $120K paid towards loans plus three years of Special Pay (which folks are ineligible for if they're taking HPLRP) for a total of $75K. Combined total of $195K.

So the total difference in this scenario is $45K. That's for six years of service in a deployable capacity. The Guard has a domestic mission for homeland disasters and crisis that the Reserves lack. It also has a state rank structure that makes it easier to know and work with your chain of command and colleagues. Is that worth $8K/year towards your loans? Your call.

And again, this delta in loan repayment is probably only valid for a few months, so it's probably only relevant to those graduating residency this month. If the Guard and Reserves maintain a significant difference in HPLRP, it'll be a first that I've heard of.

 

[EMH]

Also, if his only interests in the military are financial, he should probably think long and hard before joining.
d

As always good advise but he's from a military Family and has said he almost enlisted after high school. He likes the idea.