Pre-commissioning Loan USAA

[xmid]

The only problem is that if you don't finish OCS and commission (which could be do to a physical issue that is no fault of your own) the loan jumps to some astronomical rate and you are can be considered in default. There's probably a slim chance of that, but there's still a chance. You will get payed more than enough to cover all of your uniform and other expenses at OCS, and your uniform bill is not due until sometime (6 months?) after you finish OCS. If you are going to take the loan take it for other reasons, 'cause that ain't a good one.

 

[jt71582]

Well, some goes to refinance some student debt. Some went to buy my new man-truck, and the rest will be buffer money for OCS.

 

[Mac510]

Well thank you, I about 24K in student loans so I'm thinking about consolidating then using this loan. I appreciate the help.

 

[JIMMY]

It's not linked. Call them and ask about it.

Thx!

 

[MasterBates]

FYI, you can write off student loan interest up to $2500/yr.

Career starter loan, you cannot.

 

[Spekkio]

Also, if your student loans are all federal loans (hooray state colleges), it's likely that the starter loan would actually increase your monthly payments substantially.

 

[SVT_Cobra]

"All Hail Thunderkiss, Vanquisher of USAA Peons!"

Dude, lose the chip on yer shoulder...

Man I LOL'd at that. Wow.

 

[gatorjake18]

I just spoke with one of the loan specialists today and got an update on the Pre-Commissioning loan from what I heard from them.

25K at 2.99% fixed, 60 months, payments deferred utnil 3 months after commission.

Eligibility begins 4 months prior to commission date.

requirements:
qualify (credit check)
establish checking account with USAA, with overdraft protection (credit card)
Documents:
Application
Fax- Military ID (front and back)
copy of orders with both OCS clas date and commission
If commission date not on orders then you need a letter from commanding officer with commission date

It was on another post, but just to remind. The number is 1-800-531-4610.

I know that others have gotten 1.99%, but I don't know if this is the new set rate or initial one they give you and then lowered to 1.99 based on credit score.

 

[navy09]

Eligibility begins 4 months prior to commission date.

I know that others have gotten 1.99%, but I don't know if this is the new set rate or initial one they give you and then lowered to 1.99 based on credit score.

Eligibility begins 4 months prior now? I got mine 18 months out from commissioning. Also, I had (almost) no credit and got 1.99%. It's a sign of the times I guess.

 

[nugget81]

Eligibility begins 4 months prior now? I got mine 18 months out from commissioning. Also, I had (almost) no credit and got 1.99%. It's a sign of the times I guess.

That it is. The tightening of credit in the US leads to higher interest rates (because it is assumed that there is more risk involved, and interest is based on the amount of risk) and to stricter guidelines. 2.99% is still a killer deal on any loan for that amount.

 

[Godspeed]

You guys have been getting 2.99%? Man, you must have AWFUL credit, I have 1.99%. What a bunch of sh*tbags... Pay your bills gentelmen.

 

[MidWestEwo]

So what happens when you have bills while at OCS? I have a car payment of 150 per month, and students loans that will be coming to me soon. Can those be deferred until you are finished with training under some stipulation? Or would it be easier to just get one of these loans to consolidate everything with a lower interest rate that would begin to be paid three months after commissioning? I guess I just don't know what I would do about coordinating bill payments each month while I am on a drill instructors leash.

 

[torpedo0126]

The USAA rate has gone up, its no longer 2% (with our current economy). However, if you can I recommend checking out the Navy Federal loan. My roommates (both went to the Academy) both got Navy Federal loans for 0.5%. I couldn't believe it until he showed my the contract and the online statement.

He took this loan out in 2008, and maybe its only available to academy grads, but look into that as well.

 

[FENIAN]

I would not use the "Career Starter" or "Cadet" loan toward college loans because of all the loan repayment plans implemented in recent years. Keep in mind (or take notice) that Marines commissioned in FY 08 can apply for a Stafford loan repayment program. Call your OSO. When I got my USAA loan, it was a year prior to my commission date, I only needed a letter from my OSO stating OCS training complete and Comm Date, and I got the 1.99 APR and 25K with a 48 month payoff. My direct deposit had to be changed to USAA and the APR would shoot up to 20% at any time I became delinquent.

 

[RedFive]

Okay, wtf. I called USAA and got approved. They told me what I needed from my recruiter since the Navy doesn't provide "commissioning dates" (also listed here in other posts). I emailed the recruiter with the info and I got this:

Your enlistment docs is what they are asking for. It's depends on the date
you come in and enlist.

Do I really need to take the oath for this? I'm not going to be doing that for weeks. Is my recruiter just mistaken? Suggestions?