USAA pre-commission loan rate hike warning

[DanMa1156]

My class was originally offered a 25k loan from USAA at about 1.5 or so, as well. NavyFed countered with a 30k loan at 0.75%. Even though I had already invested the 25k, I took out the 30k with NavyFed, paid off the USAA loan, and invested another 5k.

The difference in the rate and the extra 5k made it well worth it (although my current portfolio says otherwise).

See and that's good - you were able to cut your rate in half. I'm talking ~.2% - but the difference is made up in the fact that you have to take out an additional $2,000 than USAA anyway. In my mind, the superior service of USAA is worth that .2%.

And I forget who it was before - but yeah NFCU was not offering pre-comm loans in the fall - they started offering this one in early/mid April.

 

[Reconjoe]

I called Navy Fed yesterday and they told me they dont offer a pre-commissioning loan....they several types of Personal loans but they all have higher rates than the USAA 2.9 or even the 4.9 in june.

 

[DanMa1156]

I called Navy Fed yesterday and they told me they dont offer a pre-commissioning loan....they several types of Personal loans but they all have higher rates than the USAA 2.9 or even the 4.9 in june.

Ah, my bad, must just be for USNA then.

 

[torpedo0126]

Ah, my bad, must just be for USNA then.

Yea your right. My old roommate when to USNA and has that <1% Navy Fed loan too.

 

[Achilles]

Anyone with first hand updated knowledge? Did the rate jump to 5% as mentioned earlier? I am broke dick poor and have to find some money to make the drive to RI and then FL.

I just took the loan out earlier this week. The rate did jump to 5%, I think the monthly payment comes out to $475ish for 5 years. There is a 90 day grace period till loan payments are due. You can defer the payments later but interest will still accumulate.

 

[dsevo]

Anyone with first hand updated knowledge? Did the rate jump to 5% as mentioned earlier? I am broke dick poor and have to find some money to make the drive to RI and then FL.

Sorry to go OT, but I didn't know you got selected Phil? Thats awesome news! When is your class date? What designator? Once again congrats, I know you went through a lot of shit.

 

[scoolbubba]

check navy fed's career starter loan. their rates have historically been lower than usaa's, but they aren't as internet friendly as USAA.

 

[The Renegade]

I took out the career starter loan with USAA. The rate did jump up to 5% and the monthly payment is 485 per month. You won’t have to pay until 90 days after you are commissioned, so I won’t have to start paying on my loan until Feb 2010.

check navy fed's career starter loan. their rates have historically been lower than usaa's, but they aren't as internet friendly as USAA.

I called both to make sure I got the best deal. Come to find out, the Navy Federal’s career starter loan is only for USNA and NROTC bubbas, NOT OCS selectees/candidates. We are not even eligible after commissioning… Oh well. I’m not sure about the interest rate, thou and I believe the amount offered is lower the $25k, so I would have went with USAA anyway.

 

[KCOTT]

USNA and NROTC bubbas, NOT OCS selectees/candidates. We are not even eligible after commissioning

wondering why they wouldn't even offer it after commissioning...do they still offer it to USNA/NROTC guys after commissioning as well or only while they are midshipmen?

 

[phrogpilot73]

do they still offer it to USNA/NROTC guys after commissioning as well or only while they are midshipmen?

When I was at USNA, it was "take it now, or forever hold your peace..."

 

[turbobore]

I started my auto insurance with USAA in 1987 when I bought my "ensign mobile" right after I got commissioned from AOCS. I've since had all of my insurances and banking with USAA. They are not always the very least expensive or have the very best interest rate but they are extremely competitive. They are not a charity but in business to provide the best insurance and financial services to the military members and their families. To do this they need to remain financially strong and USAA is one of the financially stongest and stable companies in the world.

I worked in the investment company of USAA for 10 years and advised cadets on their pre commission loans at the Air Force, Navy and Merchant Marine Accademies. It can be a good deal to pay off higher interest debt but it is not a good deal for everyone. In addition, USAA has the latest and greatest technology both internally and in it's website. For example, if you have a check you need to deposit you can photograph it with your I-phone and then directly deposit it into your bank account. No other bank does this.

I also worked at a "Navy Fed oriented credit union" (figure it out), and can say that USAA is vastly superior in terms of it's website functionality and global reach customer service.

I travel worlwide now and USAA has provided all the services I need with easy reach. If I were going active duty with the posibility of being deployed worldwide there is only one strong choice for financial and insurance services and it's USAA.

 

[tturaider]

1

 

[rondebmar]

Not a charter member...but won't be long now, and they'll (USAA) be sending me my "50 Year Member" decal.

 

[The Renegade]

...do they still offer it to USNA/NROTC guys after commissioning as well or only while they are midshipmen?

They can get it as a mid and for a short period after commissioning, I think it’s a year from what I remember the guy telling me.

 

[beaverslayer]

Seriously? Back in November navy fed told me they were not even offering the pre-commmisioning loan anymore so I went with USAA at 2.99%. I got ripped off!!

I'm doing some research into these loans, so I thought I might as well update this thread. I just spoke with Navy fed, and they told me that juniors and seniors at any college COULD get a pre-commissioning loan of up to 30k at 1.25%, but it was only available through the Coast Guard Academy branch. So if you feel like travelling all the way there from wherever you are to sign the papers then you could get it. Might be nice for anyone in that area, but for the rest of the country it kind of sucks. The USAA loan is up to 4.99% and a limit of 25k.