costs

Discussion in 'Naval Academy - USNA' started by waiting2018, Jan 21, 2014.

  1. waiting2018

    waiting2018 Member

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    I see that wp has a deposit for upfront costs and computer they have to pay before starting. Is naval academy the same way? Are there costs we have to pay?
     
  2. OysterMom

    OysterMom Member

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    USNA gives 4/C MIDNs (Plebes) an interest-free Advance for Clothing and Equipment [ACE] Loan right up front. Repayment is automatic from ones monthly pay. Scholarship funds, if any, can be used to defray the balance.
     
  3. waiting2018

    waiting2018 Member

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    Anyone know if you can use 529 money to pay loan?
     
  4. gmemgoch

    gmemgoch Member

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    what is the total amount of this for USNA?
     
  5. OysterMom

    OysterMom Member

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    It was $8,500 for the Class of 2017.
     
  6. OysterMom

    OysterMom Member

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    Yes, but it won't make a difference in the MIDN's cash pay for a while. The loan is interest-free, so doesn't really make sense to pay off early.
     
  7. gmemgoch

    gmemgoch Member

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    thank you for the info
     
  8. JShawshank

    JShawshank Member

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    Academies don't qualify for use of 529 funds....

    Technically, 529 Plans can't be used for USNA, USMA or USAFA because they are not "eligible institutions" as defined by the IRS. However, if the beneficiary of a 529 plan goes to one of these academies, the owner of the 529 can withdraw an amount up to the equivalent cost of attending that school. The catch is that the owner has to pay tax on the gain in the 529 account upon withdrawal.

    It's a personal decision if one wants to use those 529 funds to pay-off your MIDs $8,500 debt. Is the idea that the burden falls to the MID or do the parents want to take that debt off the table since the 529 funds were set-aside for DS/DD eduction in the first place?
     
  9. parentalunit2

    parentalunit2 Parent

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    And note that you can change the beneficiary of a 529 to another individual (i.e. younger sibling) at any time. Jimmy is going to an academy, so Jimmy's 529 money for college now becomes little Johnny's 529 money for college. Or leave it in there for grad school for the original beneficiary. (In this case beneficiary is not who gets the asset if you die; it is the literal FBO 'for the benefit of' person that is listed on the account.)
     
  10. OysterMom

    OysterMom Member

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    Sorry for the bad information. I thought I understood from another parent on another forum that he had found a way to do this at USNA. Apologies!:frown:
     

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