Commissioning Loans

[iwishiwaseatin]

I got a good one for you. I have both $25K USAA loan @ 2%, and a $30K @ 3% NFCU loan both taken out over the summer (2007). The rules as they were explained to me said USAA only requires that your money be paid out of their account every month (not necessarily from direct deposit), so NFCU gets my direct deposit, but USAA receives an allotment to automatically repay the loan.

However, I have invested/online savings accounted nearly the entire sum. The loans combined for an interest rate a bit over 2.5% so as long as I can make the payments and keep the money in an account with greater than 3% Ill do alright for myself.

I did this to get started investing each month, and to ensure that I save the money. As long as I have a loan payment I am ensuring that I keep saving (since all the money is in savings/stock accounts). At the end of the 5 years (or sooner if I get tired of debt/want to buy a house/have a better credit score) Ill have a sweet 55K. Yes this means that I have roughly a $1000 a month loan payment, but I live well below my means/frugally so it hasn't been that rough.

After talking to a personal financial planner he said I'm either brilliant (will be rich) or an idiot (will be poor). I guess Ill find out in a few years.

NFCU probably still has the loan, though no one knows anything about it, and you have to keep asking questions. I had to go into a branch office and have them call corporate to get the details.

I dont recommend anyone else try my plan. I however, had lots of time in A-Pool and read lots of fine print, made phone calls, and continue to check my bank accounts nearly as often as I check my email.

 

[Nomar116]

I've done the same thing with just the USAA loan. I tried to find the NFCU loan you referred to but only so an Auto loan at 3.5%. That's a little too high for me right now with the Market down to try and make $$ off of it.

In my investment I have lost a little money on this deal though. None of my mutual funds with USAA have made money over the past 7 months, they've all lost. I have over half of my money in Money Market accounts that make that back. But then I pay interest on the USAA account so in the end a small loss on my end.

The only reason I make this post is to point one thing out. While its great to invest promotional money (that isn't yours) because you can earn a higher interest rate, you have to invest this money in something SECURE. Throwing the money into stocks is very risky and aggressive mutual funds can be too. A financial planner once told me your doing very well for yourself if you have 10-15% of your net worth invested in the market. When you consider taking out $25k (or even $55k!) and investing you have to think you're now putting much, MUCH more of your net work in the market. Just a thought.

 

[FLYTPAY]

Do Not Pay Off Student Loans By Taking Out A Commissioning Loan.

first you finance the wedding and before you know it..... your alimony payments will be sending her on a vacation with her new lover... great plan!

MB needs a vacation! Daddy needs a new pair of shoes!

These loans sound like a really sound deal. I have about $12,000 in student loans at close to 6% that I would love to pay off ASAP. When can we apply for these loans? Pre-OCS, during, after?

Thanks in advance!

The interest you pay on your student loan is taken off your Gross income, giving you a tax advantage because of a lower Adjusted Gross Income. Paying it off deletes this tax advantage. Pay down your debts by highest APR debt FIRST, then followed by any investment. (unless of course the investment pays a rate that is higher than what you are paying on your debt (after taxes)...kabish? Bottom line, if you are paying 15% APR on credit cards and pay off that debt, it is just like getting a GUARENTEED 15% rate of return......just don't get yourself into that situation to begin with.

 

[BACONATOR]

Call them again. I got the loan approved in 15 minutes over the phone and the money the following monday. I also got it just over 18 months from commissioning, but she let it slide. The wheels were put in motion and I simply got faxed the papers, signed them, and sent them back. Great Loan. I am just retarded for not investing it, but instead spent it on a depreciating asset. Learn from me.

 

[OneBadSSS]

Are those of us enrolled in the STA-21 program eligible for these "commissioning" loans?

I have already been a USAA member for over a year (used to be with NFCU but switched) and I'd love to payoff my CC, car note and fatten my Roth IRA...

 

[Slammer2]

Call up their loan department and ask them. I think as long as you commission within the given time (they even make exceptions for that too) you should be fine. The number is 1-800-531-4610. When you call, the robot bitch on the phone makes you enter in your USAA membership number before it hands you off to a person so have that ready. The people on the phone are very friendly and easy to deal with.


My money finally came in this morning. It took two weeks. There were a few "things" along the way which delayed it, but actual time that it took would have been 3 working days. 15 minutes on the phone with USAA initially, got approved. Recruiter sent in the fax saying that i am in fact in the program (forgot to do it at first, so that took a whole week), usaa took a second day to authorize that and post my contract up online. I didnt get it posted online until Friday evening, so because of MLK day, tuesday was the first day to fax it in. The d-bag at kinkos pissed me off so i didnt fax it in until yesterday. Money showed up in account today.


Bottom line - it works and its pretty damn fast. I would reccommend that you call them after the two faxes to confirm that they got them so that you dont waste time. It takes them about an hour or so to process the fax so give it time after they are sent in.

 

[Morgan81]

Bumping this to hear everyone's opinion.
I just got off the phone with NFCU who told me their loan is for NROTC pre-grads only. I'm fairly sure this is BS, but if someone knows if someone who commissioned almost 6 months ago via OCS can still apply for the NFCU loan it would be helpful, since the 800 number people sound like they just made up an answer to get rid of me.
Thanks.

 

[mmx1]

Bumping this to hear everyone's opinion.
I just got off the phone with NFCU who told me their loan is for NROTC pre-grads only. I'm fairly sure this is BS, but if someone knows if someone who commissioned almost 6 months ago via OCS can still apply for the NFCU loan it would be helpful, since the 800 number people sound like they just made up an answer to get rid of me.
Thanks.

That's what they told me, and the lady I spoke with was quite helpful in looking up the program specifics and apologetic that I didn't qualify as an OCS grad.

 

[SavvyPR]

Sorry to bring up this old thread again, but I was wondering if this applies to Reserve Direct Commission Officers. Like others on this thread, I have about $13K in student loans that have an interest rate of 5% and it would be nice to pay them off.

 

[scottwith1t]

Sorry to bring up this old thread again, but I was wondering if this applies to Reserve Direct Commission Officers. Like others on this thread, I have about $13K in student loans that have an interest rate of 5% and it would be nice to pay them off.

if you had called you'd know by now

 

[SavvyPR]

if you had called you'd know by now

True, but I can cruise the Internet while on my work break/lunch and can't use the phones for personal calls during this time. So I thought maybe I'd have a quicker answer via the Internet... if I don't, yes, I will call when I get done volunteering after work

And yes, I checked USAA's website and it says nothing about being active duty or Reserves... just about commissioning. So that's not definitive.

 

[SavvyPR]

For anyone who wants to know... yes, reserve officers do qualify.

 

[OccamsRazor]

Thread resurrection

Sorry to dig up this old thread, but I just spoke with someone at USAA who informed me that the $25k commissioning loan is only available 18 months prior to commissioning for ROTC students, and 4 months in advance for OCS. Has anyone gotten the loan while in BDCP recently? The rep I spoke to seemed to indicate that BDCP was treated the same as OCS, even though BDCP enrollees sign contracts well in advance of commissioning.

Any info would be appreciated.

 

[nugget81]

Sorry to dig up this old thread, but I just spoke with someone at USAA who informed me that the $25k commissioning loan is only available 18 months prior to commissioning for ROTC students, and 4 months in advance for OCS. Has anyone gotten the loan while in BDCP recently? The rep I spoke to seemed to indicate that BDCP was treated the same as OCS, even though BDCP enrollees sign contracts well in advance of commissioning.

Any info would be appreciated.

Call again and talk to someone else....

 

[OccamsRazor]

Call again and talk to someone else....

I'm planning to...it just seems odd to me that their loan department doesn't know their own policies. How can it be that the answer to a question - can I get a loan while in BDCP - depends on the person you speak with? It seems like people have had to call multiple times and speak with different CSRs to get a "yes". The guy I spoke with knew what BDCP was and was sure that I didn't qualify.