Sir,
I saw your experience with USAA career starter. I am a junior ROTC contracted cadet and am considering the loan. Howeve, I have the posibility of attending medical school and receiving an educational delay. If I receive the educational delay I will commission but will not be coming to active duty until later. Would these factors affect the USAA career starter loan and would a longer deferrment be possible? I would be entering with a higher rank (O-3) if I do get the educational delay.
Exercise extreme caution. Contact USAA Career Starter Loan team to discuss and understand the loan contract terms as they apply in this case. If you have the loan brochure in your ROTC dayroom or lounge, call that number. If you don’t have it, call the general number and ask for the Bank and Career Starter Loan people.
I worked for USAA and very closely with this program until 2 years ago, so my info may be dated - hence my recommendation to call the primary source. The policy for many years has been to start the repayment about 3 months after graduation, when the new officer would be expected to be receiving active duty O-1 pay. The terms of the loan require Direct Deposit of DFAS pay to a USAA account; loan payments are taken out by automatic transfer.
I was very familiar with USNA grads going to med school. If they went to USUHS, all was well, because they receive AD pay. For those going to civilian med school, four-year deferments of the loan repayment period were not authorized. The loan rate is already so low, and repayment can already be deferred from 2/c year, that a potential 6-year deferment was not considered a prudent business decision.
I did hear on occasion that NFCU would grant longer deferments, but I don’t know how that applied to ROTC mids and cadets. Their loan is structured the same with Direct Deposit, etc.
Similar to most loans, especially no-collateral signature loans such as this, there is a clause that jumps up the interest rate to something like 18% in the case of default or not meeting the terms of the loan.
I am calling out to
@hornetguy who I believe now works at USAA to help you out.
I can’t emphasize enough for you to call and get direct answers from the loan provider.