Scholarships and the USNA

[jomass]

I'm sure several of you have had this same circumstance and I'd appreciate learning how this works.

Son will be entering plebe year and has received a few scholarships; one for $5K/yr x 4yrs; another for $2.5K x 4 yrs; and another for $1K x 4 yrs.

I heard that upon entering, plebes receive something like an $8,500 loan to purchase their uniforms, etc; the $8,500 is then paid off each pay period, which results in the plebes actually netting ~$100 after paying off their loan payment.

So if they do have scholarship money, can that be used to pay off the $8,500 loan in part or in total? (depending on the scholarship amt) And if so would much more (if not all) of their monthly pay go right into the plebe's account to use as they wish?

What about succeeding yrs when scholarship money is received? Does this go right into their account? Or can scholarship money not even be received in succeeding years? The Mids do have other costs to pay here and there throughout their 4 yrs, I assume, correct?

I would appreciate any info and/or accurate corrections to the above info from someone who's familiar with how this all works.

Thanks!

 

[MJOmom]

My plebe son received a scholarship ... which went toward his loan ... there are official papers/forms at the admissions office that had to go to the organization awarding the scholarship.



Check the rules attached to your son's scholarship ... some can not be converted to $$$ ... and each organization has different rules ...

I would suggest contacting the USNA admissions/finance office directly ... for their policies on such matters.

 

[Kero]

Yes the loan can be paid off, but no he won't get more than $100 a month.

However, the other money doesn't dissapear it goes into a held pay account that gets paid out at the end of each semester after your first semester.

 

[Memphis9489]

I'm sure several of you have had this same circumstance and I'd appreciate learning how this works.

Son will be entering plebe year and has received a few scholarships; one for $5K/yr x 4yrs; another for $2.5K x 4 yrs; and another for $1K x 4 yrs.

I heard that upon entering, plebes receive something like an $8,500 loan to purchase their uniforms, etc; the $8,500 is then paid off each pay period, which results in the plebes actually netting ~$100 after paying off their loan payment.

Actually, all the midshipmen get the exact same pay - no matter whether they are a plebe or a firstie, $900+.

The Academy has a forced savings program, however. Midshipmen do not get their full paycheck. They only get a portion of it. With each year, they get a little more of their paycheck. The rest is placed into their account and can not be withdrawn until they either quit, get separated, or graduate.

From the amount they do not get, the Academy withdraws from it each month until their entire loan is paid off.

The process is completely transparent to the midshipmen. It is automatic.

The nice part of this process is that they all graduate with a few thousand dollars. That amount can very from individual to individual because there are some optional expenses that can be charged to that account throughout their 4 years.

 

[Whistle Pig]

Memphis is correct, and allow to expand upon one of his points. This is unrelated to the thread except to edify/expand upon his comment of ...

they all graduate with a few thousand dollars.

In fact, Mids can end up with an additional $35K or so ...from their 2nd class loan (this year's was that amount). Now, unlike our government's MO, this money eventually must be repaid, but it's free $$ for awhile ...

 

[jomass]

Thanks all, but some conflicting answers....

Kero says the $ 'goes into a held pay account that gets paid out at the end of each semester after your first semester.'

Memphis9489 says it 'is placed into their account and can not be withdrawn until they either quit, get separated, or graduate.'

 

[Kero]

Unless it has changed recently you got between $500 and $3000 at the end of each semster starting at the end of your plebe year. This is not the complete balance of your held pay account but a good portion of it. The complete balance was paid off after graduation, which amounted to a few thousand dollars, however, I think firsties no longer even have held pay and they just get the balance of their paycheck after deductions.