HCSP or take on loans with no scholarship??

[AllAboutSmiles7]

Hello all,

Looking for advice!

I have an opportunity to quickly act on getting a 4-year HCSP scholarship with the Navy. Unfortunately, it is too late for me to pursue HPSP, which I know would be the better option in my case, but I'm still wondering if this is an opportunity I should take.

I'll be attending an expensive private school (about 85k a year with tuition and fees + maybe 9k per year living costs). I'll want to travel during my school breaks/on some weekends and after school will likely do an AEGD/GPR.

Should I pursue this opportunity having no experience with the military, not knowing if I will fully enjoy it, or graduate from school and figure out paying it off as I go? I am single and will have my family that I eventually want to go back to in WA, but otherwise am unattached and enjoy travel, so it seems like a cool opportunity.

I've attached a file below that shows some old numbers for the HCSP pay scale.
I would basically get 200k while in school, plus health insurance and I'm guessing about 93k per year with increases after each year once I graduate.
It looks like the Navy pays for CE/conferences as well and you don't need malpractice insurance.

"Health Services Collegiate Program (HSCP) – receive pay and benefits of an active duty member. Military obligations while a student are limited to 2 semi-annual Physical Fitness Assessments, yearly drug screening, transcript review every term, and monthly check-in with a local Navy recruiter. Students start at E6 pay and can be advanced to E7 by referring another student to a Navy officer program. Time in the program counts as active duty time and credited towards retirement. The commitment to military service for the HSCP program is the length of the scholarship (3 year min).

The table below illustrates the financial benefit over the next 4 years you will receive if you accept a HSCP medical/dental scholarship assuming a 2% annual DOD pay increase. Not included in this table is FREE medical care for the student AND their dependents. That can add an additional $1,200-$4,000 a year in benefits depending on individual circumstances. "

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[DrRickJames]

I think this a very personal decision. If you are super down to live and practice wherever you're placed and are willing to deal with it for 4 years then yes absolutely it is a good opportunity. However, the question is more about how opposed you are to it and personally whether its worth undertaking the loans for your independence. The other nice thing about doing it is that it's a guaranteed full time job and you come out with work experience that can help you get your next job wherever that might be.

 

[AllAboutSmiles7]

A little side note: you can still apply for the 3 year HPSP program. You'll still have student loans for 1 year but guaranteed employment with 75% of your loans taken care of is a no-brainer.

It's too late for Navy unfortunately, and with all the rollovers it seems like a bit of a stretch this late in the game is only the Army a viable option at this point?

 

[redhotchiligochu]

It's too late for Navy unfortunately, and with all the rollovers it seems like a bit of a stretch this late in the game is only the Army a viable option at this point?

If you're still gunning for the military route, then yes, apply for the Army. They also have a nice signing bonus (forgot the amount, could be around $25k or more), but the Army is known for being more "rough" than the other branches. Someone should chime in and see if the Army's still got spots for this cycle, but I highly doubt it.

If Trump decides to increase the budget for military spending, there's a chance that more HPSP spots could open up for next cycle, but that's just my own wishful speculation.

 

[AllAboutSmiles7]

If you're still gunning for the military route, then yes, apply for the Army. They also have a nice signing bonus (forgot the amount, could be around $25k or more), but the Army is known for being more "rough" than the other branches. Someone should chime in and see if the Army's still got spots for this cycle, but I highly doubt it.

If Trump decides to increase the budget for military spending, there's a chance that more HPSP spots could open up for next cycle, but that's just my own wishful speculation.

Can we still apply for the scholarships this summer/while we're in our first year of school? Or they're less likely to accept you when you've already started?

 

[schmoob]

What's your plan? Are you planning on doing 4 years and getting out? Or are you going career? The answer will affect my advice significantly.

 

[AllAboutSmiles7]

What's your plan? Are you planning on doing 4 years and getting out? Or are you going career? The answer will affect my advice significantly.

Well it depends how my experience is. I would make a career of it if I enjoyed it. But that's something I won't know until I'm doing it. I've never experienced military/Navy life so it's hard to say right now.

 

[schmoob]

Ok. The reason say this is because if you are going somewhere expensive, it would make sense financially for you to go career. Here is why:
1. Max out ALL your federal loans.
2. Pay for tuition and invest ALL of the rest by maxing out your TSP. Change your fund from the default G fund to a Lifecycle 2050 fund.
3. Switch to an IBR plan.
4. Stay in for 16 years after graduation.

Here is why - Because you will be taking out such a large amount, your IBR repayment will be no different by maxing out the loan because it is based on your income, not your principle. Your taxable income will allow you to be only responsible for a small payment.
Once you hit 10 years, you are eligible for PSLF and your remaining balance will be forgiven. At that point, you only have 6 years left until retirement! Plus, by maxing out your TSP for 4 years, it has 40 YEARS to compound. You are literally setting yourself up for your retirement years between that and your military pension.

 

[Vortex_Ring_State]

Navy>>>Army. If you have any doubts about that you might be a good fit for the Army.

HSCP is a good deal- you might save a bit on those tuition numbers due to the fact you'll have health insurance through the Navy - which is vastly superior to whatever health insurance program your school will have. There are some proposed changes to the system, but currently if you're in HSCP you can enroll in IB loan repayment for 10 years and have the remaining balance of your student loans forgiven due to the public service loan forgiveness. So, if you're smart about it and stay in for 10 years following graduation you'll have your remaining loans forgiven TAX-FREE.

Also, many people don't really understand the way military folks are paid. On the HSCP you're active duty - google "active duty compensation calculator" and type in E-6 with 0 years of service and whatever zip code your school is in to figure out exactly what you'll get paid. Things like BAS and BAh often aren't figured into people's calculations for what you'll make while in school, but they really do add up.

Either way, best of luck, if you're smart enough to be thinking about how to avoid student debt now, you're miles ahead of a ton of people and will do great!!