Can I Pre-pay for Uniforms and other first year costs?

S

S_Austin

5-Year Member
Joined
Mar 12, 2018
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Now that DD is destined for USNA with her recent LOA (contigent upon Nom), I am starting to research into first year out of pocket costs. I notice a big chunks is deducted from monthly stipends. I was wondering if the group can share any advice for allowable expenses that be pre-prepaid. My other DS graduated from USCGA was able to prepay for uniforms with scholarships and savings. This resulted in higher monthly net stipend. The saving helped him kickstarted his transition from academy to being on his own especially many hotel nights at port calls.
 
I wanted to do that too, back in 2018. It turned out that my son didn't want that. He said that I reminisced about "being poor" when I was starting out and he wanted to have the same experience - not because it was hard - but because it shaped me as a person. I was struck by the wisdom of that, so I stepped back and watched him deal with only having an extra $100 each month. He got through it fine and unlike me, he never had to sell plasma.

I used my Discover card points to get him gift cards to Chipotle. He never turned those down! :)
 
Even if you prepay, they will still receive the same ‘paycheck’ as everyone else (plebe year). Excess is dealt with through held pay, which is adjusted at different times, but on a day to day, month to month basis each plebe will have the same funds from their paycheck. So they are all the same.

They will eventually get it for that ‘transition from academy…’.
 
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Yes you can. The more you pay up front the more net pay will show up in your DD's monthly check. This is right out of the Midshipmen Stipend Budget Book:

d. Midshipmen may apply outside funding that is intended to subsidize educational expenses to the
repayment of their ACE [Advance for Clothing and Equipment] and future uniform and textbook issues. The estimated average amount of a
Midshipman’s gear issue and other mandatory fees over their four years at USNA is approximately
$30,000. USNA cannot accept money intended to pay for tuition and/or lodging. This money is only
for books, uniforms, equipment, or other mandatory education expenses. Authorized funds include
personal checks or public and private scholarships. Educational savings plans such as state 529
companies may not submit funds to directly to USNA as we are not a qualified institution. 529 funds
would have to be disbursed directly to the owner then submitted to USNA, if desired.
 
My kid is at AF prep and her scholarships were able to be applied no problem. I believe USNA was the same when we asked last year going through the process. Mine has been able to add to her ROTH and TSP with the extra money. Keep applying for the scholarships :)
 
Based on posts on this same topic that recur annually, the candidate should research whether the scholarships themselves do not have restrictions on their use that make them inapplicable at a service academy. For example, if a scholarship specifically states it is for tuition or room and board, a service academy dues not charge for those costs. Ideally, a scholarship is a straightforward grant to help with general college costs to be applied as needed.

Well done to the poster who provided the link to the annual budget book - everything handily explained there.
 
crha said:
My kid is at AF prep and her scholarships were able to be applied no problem. I believe USNA was the same when we asked last year going through the process. Mine has been able to add to her ROTH and TSP with the extra money. Keep applying for the scholarships :)
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A small heads-up - when your daughter successfully completes USAFAPS (yay, what a great deal) and becomes a cadet, she will not be able to contribute to her TSP until after she graduates. Whatever she has been able to put in from her USAFAPS pay enlisted status will continue to grow over her 4 years as a cadet at USAFA. As she gets ready to graduate from USAFA, she will be able to complete the admin that re-starts her contribution from her O-1 officer pay.

Just one of those quirks at service academies, cadets and midshipmen are not eligible to contribute to TSP. It’s not a SA policy, it’s something way higher in regulations, similar to the 4 years at a SA not counting toward military retirement but can count toward federal civil service retirement.

For those unfamiliar with TSP, the Thrift Savings Plan is the federal equivalent of a 401(k) plan. Similar rules, Roth option, various funds, etc.

Home | Thrift Savings Plan

www.tsp.gov www.tsp.gov

Your daughter can wisely continue to contribute to her individual Roth IRA in accordance with whatever rules apply relating to her max contribution amount and actual earned income at USAFAPS, USAFA and as an officer.
 
Birdman said:
Yes you can. The more you pay up front the more net pay will show up in your DD's monthly check. This is right out of the Midshipmen Stipend Budget Book:

d. Midshipmen may apply outside funding that is intended to subsidize educational expenses to the
repayment of their ACE [Advance for Clothing and Equipment] and future uniform and textbook issues. The estimated average amount of a
Midshipman’s gear issue and other mandatory fees over their four years at USNA is approximately
$30,000. USNA cannot accept money intended to pay for tuition and/or lodging. This money is only
for books, uniforms, equipment, or other mandatory education expenses. Authorized funds include
personal checks or public and private scholarships. Educational savings plans such as state 529
companies may not submit funds to directly to USNA as we are not a qualified institution. 529 funds
would have to be disbursed directly to the owner then submitted to USNA, if desired.
Click to expand...
Much appreciated ... Thank You
 
Capt MJ said:
Just because I happened to run across it while researching primary sources about TSP, this popped up for USAFA, WRT applying scholarships and educational plans.


And yes, I discovered the TSP restriction for service academy cadets and midshipmen is indeed rooted in US Code, but I’m not diving down that rabbit hole here.
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Yes which is frustrating for sure, but she plans to send some money into her ROTH during her academy time because she'll technically have earned income. YAY! Thank you!!
 
S_Austin said:
Now that DD is destined for USNA with her recent LOA (contigent upon Nom), I am starting to research into first year out of pocket costs. I notice a big chunks is deducted from monthly stipends. I was wondering if the group can share any advice for allowable expenses that be pre-prepaid. My other DS graduated from USCGA was able to prepay for uniforms with scholarships and savings. This resulted in higher monthly net stipend. The saving helped him kickstarted his transition from academy to being on his own especially many hotel nights at port calls.
Click to expand...
My advice is to do the prepay with scholarships, if any but not with Savings or the Bank of Mom&Dad or Bank of Grandparents. Anything from the latter two banks could instead fund a Roth or other IRA so that your DD earns interest and Dividends on the money while letting the uniforms be paid for by an INTEREST FREE loan from the government. Your DD's net worth will appreciate this nuance. Scholarships and awards are a different animal as they tend to be use it or lose it money while the Family Funds can be applied a bit more flexibly.
 
Birdman said:
Yes you can. The more you pay up front the more net pay will show up in your DD's monthly check. This is right out of the Midshipmen Stipend Budget Book:

d. Midshipmen may apply outside funding that is intended to subsidize educational expenses to the
repayment of their ACE [Advance for Clothing and Equipment] and future uniform and textbook issues. The estimated average amount of a
Midshipman’s gear issue and other mandatory fees over their four years at USNA is approximately
$30,000. USNA cannot accept money intended to pay for tuition and/or lodging. This money is only
for books, uniforms, equipment, or other mandatory education expenses. Authorized funds include
personal checks or public and private scholarships. Educational savings plans such as state 529
companies may not submit funds to directly to USNA as we are not a qualified institution. 529 funds
would have to be disbursed directly to the owner then submitted to USNA, if desired.
Click to expand...
Does anyone know if a grandparent could withdraw $ from a 529 without penalty to pay for these costs? I see that they can’t disburse directly to the academy, but would this be a qualified disbursement? Grandma savved and wants to help out. My parents said they’d fund the Roth from their 529
 
2025HSGraduate said:
Does anyone know if a grandparent could withdraw $ from a 529 without penalty to pay for these costs? I see that they can’t disburse directly to the academy, but would this be a qualified disbursement? Grandma savved and wants to help out. My parents said they’d fund the Roth from their 529
Click to expand...
They just changed the tax code on 529 money into Roths this past year!
 
Birdman said:
Yes you can. The more you pay up front the more net pay will show up in your DD's monthly check. This is right out of the Midshipmen Stipend Budget Book:

d. Midshipmen may apply outside funding that is intended to subsidize educational expenses to the
repayment of their ACE [Advance for Clothing and Equipment] and future uniform and textbook issues. The estimated average amount of a
Midshipman’s gear issue and other mandatory fees over their four years at USNA is approximately
$30,000. USNA cannot accept money intended to pay for tuition and/or lodging. This money is only
for books, uniforms, equipment, or other mandatory education expenses. Authorized funds include
personal checks or public and private scholarships. Educational savings plans such as state 529
companies may not submit funds to directly to USNA as we are not a qualified institution. 529 funds
would have to be disbursed directly to the owner then submitted to USNA, if desired.
Click to expand...
The additional disbursement will come out in 2/C and 1/C year. First and second years everyone gets the same stipend monthly no matter what is in your held pay account. The end of the budget book has sample worksheets and LES to review.
 
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