Basic economics: A cadet for 2 years is use to getting less than $200 a month. In their 3rd and 4th year there, they will be getting most of their $900. If they were able to put $400 of it away each month, they'd still have a nice amount of money (That they weren't use to having each month). 2 years later, upon graduation, they'll have approximately $10,000. Take the $35,000 almost interest free loan. Take $10,000 from it and add it to the $10,000 you already saved. Now; you can spend $20,000 on everything you will need starting off your new life. Including a decent used car; uniforms; some furniture; etc... Take the leftover $25,000 from the almost 0% loan and put it in a modest 4.5% interest CD. (Insured by bank). Leave it there for the next 40 years when you get ready to retire. It will be worth $150,732.88.
The $35,000 loan over 5 years will be about $590 a month. But, because you have everything you need and it's PAID FOR IN CASH; $590 is easy to do on a 2LT's pay. Now; 2 years down the road, you become a 1LT and get a pay raise. 2 more years later, you're a Captain and another nice pay raise. 1 year later you have a choice. You get out of the academy and your $590 loan is PAID OFF, and you start your new life debt free (with the long term retirement supplement taken care of.) Or, you stay in the Air Force and you've now given yourself an instant $590 pay raise (For all perspective purposes). Give yourself a $290 pay raise and take the other $300 (because you're not use to having it anyway); and put that into a nice modest CD or similar at 3%. Do this until you retire (approximately 20 years) and you'll have another $105,399.04. Without adding anything more to this, it will be worth $191,905.83 when the first chunk becomes worth $150,732.88. Now; you're sitting there with almost $350,000; a military retirement; ANY RETIREMENT or 401K that you received from your 2nd career that you did for 20 years after the military; and anything you saved. This will net you approximately $75-$100,000 a year income without every having to work again. You can truly retire and enjoy life.
And you did all this without living payday to payday or taking out 1 penny of money you were LIVING ON and would put a damper in your lifestyle. Not using any of this money I'm talking about, your budget will still allow you to buy that new car with payments, travel, vacation, home, etc... I'm explaining basically a 5 year plan. After the 5 years, the rest of your life is financially pretty well set up. Again; 5 years of planning, and you can set yourself up for life. Remember, you should be "Working to Live"; NOT "Living to Work". Anyway, this is my $0.02478583 (inflation). later... mike....