USAA's loan, same as NFCU and other "career starter loans," are very low interest signature loans, meaning there is no collateral for the loan. The loan is given for your signature, based on the fact you are obligated to your service commitment at this point, expecting 0-1 pay, then O-2 pay, then 0-3, for at least 5 years after graduation - the period of loan repayment. Your payment will come out automatically from your USAA checking account where your Air Force pay will be Direct Deposited. USAA has calculated the odds, and your history would likely not stand out as an issue. They see many cadets who have had issues, especially prior enlisted, or those who went elsewhere to college and have student loan debt. If for some reason you were declined, you have up to your commissioning, and, I think it's still true, a year after, to take the loan, and heal up any credit issues. You may take smaller amounts of money.
Ideally, you take advantage of the free financial counseling by the salaried advisors (no one at USAA works on commission), or consult your trusted family advisor, and do smart things with the money: pay off consumer debt, fully fund an IRA, start other short/mid/long-term investments, buy a good used car, build up your emergency fund, set aside some funds for graduation expenses, get serious about your budget. Those who have the discipline to do that, usually find this was a good choice for them. It's not everybody's choice, as there are many schools of thought about taking on debt. The loan rate has varied between .5 and 1.25% over the last several years, which is usually several percentage points lower than the going rate for a signature loan for someone with good credit scores.
Ensure you read and understand the contract, when the bank rep goes over it with you. The default rate is 18%, a standard for signature loans, should you fail to make payments or otherwise not meet the loan's terms.
USAA does this at a loss, for all 5 Academies, ROTC and direct commissioning programs such as OCS/OTC, because they want a lifelong relationship with you and your eventual family for their products and services.
More than you wanted to know. When I worked for USAA, I dealt with the CSL for the 4 SA's in my territory. USAA did decline loans for those who were really in bad shape, as it was not the right thing to do. Interestingly enough, the vast majority do smart things with the loans. There are always a few who are complete idiots: the mid who "loaned" most of it to a bankrupt uncle and never got a cent back, the mid who chartered a party bus to NYC with buds and dates for Ring Dance Weekend, just sheer stupidity stories.
You are smart to take steps to get your credit all shipshape again - I know you are AF but can't recall an equivalent zoomie term.