Army Rotc Forgiveness loans

[clarksonarmy]

To the best of my knowledge this will be offered to the currently accessing MS IVs. Whether it will be around next year is anybodies guess. Cadet Command reg 145-1 revised Oct 2010 still lists the SLRP. You are all right in that these are incentive programs that come and go, and should not be counted on. About 4 years ago we didn't have ADSOs, and they were offering branch of choice if you wanted ordnance, field artillery, or chemical corps (I think those were the three choices.

 

[Pima]

Honestly, this is shocking to me. The Army is still offering this while the DOD budget is being cut, including the idea that retirees who served 20 yrs AD will pay more for Tri-Care?

Seriously, please tell me I have this wrong. Tell me, I am not reading this right...serve an extra 2 yrs in the Army in any capacity and you get to knock off 50K!

Sad fact...Army pay to jump out of perfectly good airplanes is still at the same pay as it was 40 yrs ago.

Not trying to pee in anyone's cheerio's just saying that I don't get them.

 

[dunninla]

Not trying to pee in anyone's cheerio's

I would NEVER accuse you of that

This could be a case of Cadet Command wanting to keep an incentive in place that may have been used to recruit a cadet into the program in 2009, 2010, or 2011...after all it applies to both scholarship and non-scholarship cadets. But who knows, really? I'm still not convinced it is in force currently, and hasn't simply been an oversight to remove it from the CC Reg 145-1. But what do I know?

 

[Pima]

I am not sure the units can do this because it would be AD and ROTC. It would mean ROTC would have to have the $$$ in the bank. That would bring them to a NPF tax issue.

Again, I have to ask how the Army would say SURE...give this out while we have not increased Jump pay in decades for our AD? Or do this while we decreased the amount of scholarships?

I really would like to hear from Clarkson or Marist why they offering to pay this with such a high retention rate and reduce scholarships.

 

[Jcleppe]

I am not sure the units can do this because it would be AD and ROTC. It would mean ROTC would have to have the $$$ in the bank. That would bring them to a NPF tax issue.

Again, I have to ask how the Army would say SURE...give this out while we have not increased Jump pay in decades for our AD? Or do this while we decreased the amount of scholarships?

I really would like to hear from Clarkson or Marist why they offering to pay this with such a high retention rate and reduce scholarships.

The Army can be a mystery sometimes.

Add this to the fire. Even during this time of cutbacks the Army is increasing the number of cadets they will be sending for CULP by around 600 for this year. Considering the travel and cost per cadet that totals a tidy sum. They still offer CLIP money for approved languages, son received $1250.00 last year for one semester of Arabic. You can bang your head against a wall sometimes trying to figure out how the government spends money.

 

[Aglahad]

I remember one semester I didn't even get book money and a few stipends were messed up...aww good times. Interesting program, although I am always leery of ADSOs in any form haha. However, I could see how this ADSO could be a lot more beneficial then say something like a post ADSO

 

[clarksonarmy]

Two things...take a look at the stipulation that only certain loans are eligible. I think this quickly reduces who can take advantage of this program. And unlike some of the other services, business is still "good" for the Army.

 

[paradoxer]

New program

Info on this program can be found here:

http://www.finaid.org/loans/publicservice.phtml

I have not had any experience with this program. Does anybody know someone that actually utilized this program ?

This program began in 2007 so no one will have forgiveness until 2017. Most people will have paid off their loans within the 10 year time frame needed to meet the 120 payments of this program. But it's great for those with federal loan debt that exceeds their income for a significant period of the 10 year repayment. Think public defenders: $120,000 debt and $40,000 in salary or family physicians $300,000 debt and $100,000 incomes. Note also that you have to be employed by a 501c3 during the entire repayment period while making the 120 payments.

 

[Pima]

I am not sure if this still exists, but curious if it does.... as an ROTC graduate, you use to be able to defer your loan repayment for a yr after going AD compared to the traditional repayment beginning after 6 months from graduation date.

I knew it existed decades ago because we had friends who did that as 2nd Lts. I assume the theory for it was many do not go AD right away, and that even for the 1st yr., they maybe in "training" and moving frequently.

Clarkson, I am not sure what you mean by "business is still good", it is in reference to the budget, funding scholarships, or retention or no RIFs. I am polish, and my mind is not processing that comment.

 

[paradoxer]

Changed a bit

I am not sure if this still exists, but curious if it does.... as an ROTC graduate, you use to be able to defer your loan repayment for a yr after going AD compared to the traditional repayment beginning after 6 months from graduation date.

I knew it existed decades ago because we had friends who did that as 2nd Lts. I assume the theory for it was many do not go AD right away, and that even for the 1st yr., they maybe in "training" and moving frequently.

Clarkson, I am not sure what you mean by "business is still good", it is in reference to the budget, funding scholarships, or retention or no RIFs. I am polish, and my mind is not processing that comment.

http://http://ifap.ed.gov/dpcletters/attachments/GEN1017AttachPostActDefReqMilServDefer.pdf

 

[Pima]

Thanks for the link, honestly it left me with more questions.

Am I reading this correctly?

Military Service Deferment. I meet the eligibility requirements for this deferment as described in Sections 6 and 7 and request that my loan holder defer repayment of my
eligible loan(s) beginning on the date I began performing the military service that qualifies me for the deferment, and ending 180 days following completion of my qualifying
military service.

So in essence they can defer for yrs upon end?

It than goes on and seems to contradict their self.

Title 10, Section 101(d)(1), US Code
(d) Duty Status.--The following definitions relating to duty status apply in this title:
(1) The term ``active duty'' means full-time duty in the active military service of the United
States. Such term includes full-time training duty, annual training duty, and attendance, while in
the active military service, at a school designated as a service school by law or by the Secretary
of the military department concerned.

For the Military Service Deferment only:
• Active duty means full-time duty in the active military service of the United States as defined in 10 U.S.C. 101(d)(1), but does not include training or attendance at a
service school

I don't know any officer who doesn't attend "training" prior to going AD, so wouldn't that make it null and void right off the bat.

Look at rated officers, UPT/UNT is 1 yr. Yet at the same time I know that they stated they were able to defer, however, I will admit it was yrs ago, so maybe that is how they closed the loop hole.

I get the service school, if they are saying attending an SA, but I don't get training.

 

[paradoxer]

Training = Basic

Thanks for the link, honestly it left me with more questions.

Am I reading this correctly?


So in essence they can defer for yrs upon end?

It than goes on and seems to contradict their self.





I don't know any officer who doesn't attend "training" prior to going AD, so wouldn't that make it null and void right off the bat.

Look at rated officers, UPT/UNT is 1 yr. Yet at the same time I know that they stated they were able to defer, however, I will admit it was yrs ago, so maybe that is how they closed the loop hole.

I get the service school, if they are saying attending an SA, but I don't get training.

Basic Training is what is referred to here. So you can't have a deferment during Basic or if your are active duty and at your initial/primary assignment. BUT when you get deployed then you have the ability to have the deferment and have it multiple times for each deployment. Also you have to remember that there is still a cost involved because any unsubsidized loans will continue to have interest accrue.

 

[Pima]

Than that really makes no sense to me because if you are deployed, assuming they mean a hazardous duty area, you get that pay, + many times a cut in taxes, so if anytime you could afford to pay it, it would be at that time due to the increase in pay.

It really appears that this is a program not worth the paper it is written on due to all of the squares that they must fill just to be eligible.

To me what is sad, is that many ROTC grads don't go AD right away, and many take student loans because they weren't scholarship. This means as they are awaiting to go and serve, they will have to worry about paying the loan, and if they can't afford them as a waiter at AppleBees, they risk their TS clearance due to credit issues.

Bullet back in 87, did not go to UNT for 9 months. He had no student loans, but if he did, he would have had to start re-paying 90 days prior to going AD. That was in a much stronger economy.

I may have missed something, but I did not see it stating you must be deployed. I took it as if you are AD, not in training, than you are good to go. UPT/UNT may fall into a different category, because you are not TDY, but actually PCS'd to these schools. TDY is anything under 6 months.

I took the deployment issue to say, they will give the deferment if you were forced to go AD, but not to mean you must be AD and deployed to be eligible for the deferment.

 

[paradoxer]

Loan Servicer interpretation

Than that really makes no sense to me because if you are deployed, assuming they mean a hazardous duty area, you get that pay, + many times a cut in taxes, so if anytime you could afford to pay it, it would be at that time due to the increase in pay.

It really appears that this is a program not worth the paper it is written on due to all of the squares that they must fill just to be eligible.

To me what is sad, is that many ROTC grads don't go AD right away, and many take student loans because they weren't scholarship. This means as they are awaiting to go and serve, they will have to worry about paying the loan, and if they can't afford them as a waiter at AppleBees, they risk their TS clearance due to credit issues.

Bullet back in 87, did not go to UNT for 9 months. He had no student loans, but if he did, he would have had to start re-paying 90 days prior to going AD. That was in a much stronger economy.

I may have missed something, but I did not see it stating you must be deployed. I took it as if you are AD, not in training, than you are good to go. UPT/UNT may fall into a different category, because you are not TDY, but actually PCS'd to these schools. TDY is anything under 6 months.

I took the deployment issue to say, they will give the deferment if you were forced to go AD, but not to mean you must be AD and deployed to be eligible for the deferment.

I actually called a federal loan servicer who admitted that this was not a straight forward document but that this was the intrepretation of how they looked at training/deployment and what it would take to qualify.

All federal loan borrowers whether military or not have access to other deferment and repayment plans. In your example if you can document low income you can actually be in repayment and the monthly payment is 0. The calculations are based on income, poverty level and family size and it's known as Income Based Repayment and is a fairly new option. So no one should have credit issues because of lack of income.

You are exactly right that there are many federal programs that aren't worth the paper they are printed on but exist because someone in Washington and not living on the same planet with the rest of us implemented a program that really benefits very few. The mysteries of life....