Both HPSP and loans

[itsmekook]

Anyone planning to get loans while they are getting HPSP?
How much?
What's your plan to pay them off?

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[gatorfan99]

I had undergrad loans when I first came in, I was very careful with my spending and paid them all off in my first 18 months in the Army.

Remember, you do get paid ~90k/yr when you first join + all the "hidden benefits" (they all add up to A LOT): no need to pay for health/dental/malpractice/disability insurance+ tons of discounts + cheaper gas/groceries on post, the list goes on and on..

 

[chill45]

There is really no reason to get loans if you are on HPSP unless you live in an extremely expensive place or you use your bonus to pay off other loans. HPSP pays for 95% of everything, including food, gas, rent, and a little fun money. Biggest expense I typically encounter that sneaks up on me are the taxes for the dental kits. An $8,000 dental kit will cost me ~$800 in sales tax and I forget to budget that in sometimes. There are a couple other school fees that they won't cover, SGA fee is one I can think of, but they don't tally more than $100 a semester.

 

[darknightzzz]

There is really no reason to get loans if you are on HPSP unless you live in an extremely expensive place or you use your bonus to pay off other loans. HPSP pays for 95% of everything, including food, gas, rent, and a little fun money. Biggest expense I typically encounter that sneaks up on me are the taxes for the dental kits. An $8,000 dental kit will cost me ~$800 in sales tax and I forget to budget that in sometimes. There are a couple other school fees that they won't cover, SGA fee is one I can think of, but they don't tally more than $100 a semester.

do you think if it is super hard to obtain army hpsp?

 

[chill45]

do you think if it is super hard to obtain army hpsp?

Not if you apply early and have decent stats. O and the most important thing is a good recruiter. I tried to do Army first and he was worthless so I went to the Navy recruiter and he was worth his weight in gold when it came to helping me out. All branches probably have recruiters of each type though so just call around and get a feel of what is going to work better for you.

 

[darknightzzz]

Not if you apply early and have decent stats. O and the most important thing is a good recruiter. I tried to do Army first and he was worthless so I went to the Navy recruiter and he was worth his weight in gold when it came to helping me out. All branches probably have recruiters of each type though so just call around and get a feel of what is going to work better for you.

a good recruiter, in your term, is the one that get your application completed and submitted and waiting for board? lol

 

[chill45]

a good recruiter, in your term, is the one that get your application completed and submitted and waiting for board? lol

Yes

 

[chompsss]

FYI - depending on how your school interprets your HPSP stipend, you may not (and likely will not) qualify to take out additional loans.

You will be able to take out loans in addition to HPSP stipend/pay if:

• Your school's posted "Cost of Attendance" exceeds what you're paid with the (~$2,100/mo * 10.5 mo of stipend) + (1.5 mo of ADT pay which includes Basic pay, BAH and BAS).
  • Example: University of the Meharry Pacific Creighton Ostrow School of Dental and Enlightened Biomedical Oral Health Science Institution School has a set Cost of Attendance of $110,000 per year ($80k for books, fees, tuition, etc. and $30k for cost of living, travel expenses, etc.). The government pays all the tuition, books, etc. ($80k) and then if the stipend + ADT pay only adds up to $25k, you'd be eligible to take out $5k in loans.

OR

• Your school interprets the stipend as "Income"

You will not be able to take out loans in addition to HPSP stipend/pay if:

• Your school's posted "Cost of Attendance" does NOT exceed what you're paid on HPSP

AND

• Your school interprets the stipend as a type of federal funding (which, it is technically correct to interpret it this way)

There is some gray area here - some schools allow it, some don't. It ultimately comes down to how your financial aid office interprets the stipend and whatnot. I would strongly encourage you to call the financial aid office of the schools you're interested in and get their clarification. That will be all you need to determine, definitively, whether you'll even be able to or not.

@USArmyHPSP do you concur? You seem to know a ton about this stuff.

 

[chill45]

If a school is considering your stipend as a part of your scholarship then I would go talk to them about that. I've always treated my stipend as income and I don't see why a school wouldn't either. But besides that your school's cost of attendance includes estimated living costs and such, so if you your stipend doesn't cover that then you'd be able to take out a little bit more, but if it does then you shouldn't need any extra anyways. That extra should be going into a savings account, retirement account, or paying on undergrad loans. I live pretty comfortably on my stipend and can go out at night or golf or whatever pretty much whenever I want within reason and still have enough to contribute to my Roth IRA.

 

[USArmyHPSP]

@staapes57 your example is dead on.

In 2002/2003 the Department of Education issued a policy ruling that schools should include the HPSP stipend when determining a student’s qualification for loan amounts. Schools previously included only educational costs (tuition, reimbursed expenses) paid under the HPSP in determining loan qualification. Stipend is now part of the loan qualification because it is not pay for employment, but rather an HPSP entitlement.

Existing statute appears to support the policy interpretation. Section 1087kk, Chapter 28, Title 20 United States Code (Subchapter IV, Higher Education Resources and Student Assistance) prescribes the amount of need as: The cost of school attendance minus the family (includes student) contribution and estimated other financial assistance received.

Section 1087ll prescribes the cost of attendance as tuition/fees, books, supplies, equipment, computer rental/purchase, transportation, room and board, and if applicable, expenses for child care.

Section 1087mm and 1087nn includes the student’s income as part of the family contribution. Section 1087vv (j) (other financial assistance; tuition prepayment plans) indicates that estimated financial assistance received by the student shall include all scholarships, grants or other assistance at the time of determining need.

The HPSP tuition payment is treated as a tuition prepayment plan under Section 1087vv (j)(2) and reduces the cost of attendance. The stipend appears to fall under Sections 1087mm, 1087nn, and 1087vv (j) that prescribe other financial assistance shall include all scholarships, grants or other assistance.