I was wondering if anyone knows what happens when u enter the academy with debt? I know there are high school seniors or prior enlisted that get into debt getting a new car or a loan, so i was wondering if there a way to cap the intrest before entering the academy or any financial options? Any input would be great.
Debt and the academyyy
- Thread starter NavyBoy14
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I don't know about specific financial options but the academy does have full financial services available which can help with things like financial counseling and debt consolidation. In severe cases there is also the Navy/Marine Corps Relief Society which can also provide education and counseling as well as zero interest loans when they deem the need. I knew more than one prior who struggled through the academy because of large debts they had aquired before joining the academy and taking the huge pay cut.
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Is there a specific issue you have?
It is doubtful any high school senior gets a loan for a new car or otherwise without a co-signor. If you go to USNA with outstanding debt payable monthly and you can't (or don't) pay it, the lender will look to the co-signor.
It is doubtful any high school senior gets a loan for a new car or otherwise without a co-signor. If you go to USNA with outstanding debt payable monthly and you can't (or don't) pay it, the lender will look to the co-signor.
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Anytime you think you may not be able to live up to your debt obligations, talk to your lender about options. Re-financing might be an option - extending the life of the loan with smaller monthly payments. You pay more interest overall but are better able to cover the monthly payment.
You do not want to have financial institutions trying to track you down for nonpayment at a SA (or anywhere else in the military). That kind of thing also affects security clearances down the line.
If it's a secured loan, i.e., for a car, consider selling it and paying off/down the loan. If it's credit card debt you're carrying, start living very lean (el cheapo pay-as-you-go phone, be clear on what your needs are versus your wants, sell any toys, drink water) and pay more than the minimum required monthly payment.
There might be a family member who would help you cover the payments, if you execute a loan agreement with them, contracting to repay them as soon as your financial situation improves.
The Navy and Marine Corps Relief Society, as well as similar organizations in the other services, do exactly as noted in the previous post. The challenge would be to get to them during Plebe Summer - doubtful. This is something to handle before reporting.
Kudos to you for thinking about this now. If you face up to and solve this challenge successfully, you will look back with pride years from now, when you will be in a much more comfortable financial situation.
You do not want to have financial institutions trying to track you down for nonpayment at a SA (or anywhere else in the military). That kind of thing also affects security clearances down the line.
If it's a secured loan, i.e., for a car, consider selling it and paying off/down the loan. If it's credit card debt you're carrying, start living very lean (el cheapo pay-as-you-go phone, be clear on what your needs are versus your wants, sell any toys, drink water) and pay more than the minimum required monthly payment.
There might be a family member who would help you cover the payments, if you execute a loan agreement with them, contracting to repay them as soon as your financial situation improves.
The Navy and Marine Corps Relief Society, as well as similar organizations in the other services, do exactly as noted in the previous post. The challenge would be to get to them during Plebe Summer - doubtful. This is something to handle before reporting.
Kudos to you for thinking about this now. If you face up to and solve this challenge successfully, you will look back with pride years from now, when you will be in a much more comfortable financial situation.