The Navy College Loan Repayment Program
Sailors have access to about the same benefits as Soldiers, with up to $65,000 in lifetime loan forgiveness available to those who qualify for the benefit.
Like Soldiers, theyre only eligible to begin receiving CLRP benefits after theyve completed at least a year of service, and they cant qualify for the program unless they agree to sign up for at least four years of service.
For full details on how Navy SLRP works, please visit my Guide to the Navy Student Loan Repayment Program.
Military And Debt Regulation: Article 134 Of The Uniform Code Of Military Justice
Here is the excerpt of Article 134 of the Uniform Code of Military Justice . This is the same Article that the specialist was discharged under, and that I wrote up my soldier for:
As you can see, excessive debt can have a severe impact on your career. It will also have a negative impact on your personal life. But debt is only part of the total picture when it comes to your security clearance and background check.
Consider Nonprofit Or Va Credit Counseling And Debt Management
The VA offers free financial advice through its Beneficiary Counseling Program. Its Career Center helps military personnel transition into careers in the public sector.
Millions of people, in and out of the service, have gotten their financial houses in order through debt management programs that consolidate your credit card debt into one monthly payment with a lower interest rate.
Among the advantages are paying off debt faster and more efficiently, and having the guidance of certified financial counselors.
The downside is you must stop using credit cards and it typically takes three to five years to complete a debt management program.
The VA doesnt offer military debt management programs, but service personnel are free to investigate them in their quest to get out of debt. That 3.4% pay raise is more of a catch-up than a solution.
Military households that couldnt pay their bills went from 16% in 2014 to 34% in 2019, according to a Harris poll sponsored by Wells Fargo and the National Foundation for Credit Counseling.
Men and women in uniform face many challenges and daily sacrifices while serving our country, said NFCC President Rebecca Steele. Financial concern shouldnt be one of them.
With a proper debt management plan, it wont be.
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Will You Get Fired
Debt will not generally result in the loss of your job. MoneyForce advises, Formal Service action will only be taken in cases of persistent and irresponsible indebtedness. So it’s better to seek help as soon as possible. Don’t be embarrassed or ashamed to talk to your Chain of Command in the first instance. They will put you in contact with the relevant organisations that can help you.
Debt issues are widespread throughout society. As well as overspending, modern employers understand that debt may simply result from bad luck, honest mistakes, or life changes. No employer wants to lose highly trained and experienced men and women.
Why Does Your Chain Of Command Need To Know
Serious and uncontrolled debt can create vulnerability. It can affect workplace performance and reduce levels of trust. Your employer has a duty to control these types of risk. Chain of command disclosure is a major part of this risk control process.
There are comments about debt in A Soldiers Values And Standards produced by the British Army. It includes the following statement, Look after your money carefully, avoid uncontrolled debts and heavy gambling as this shows a lack of self-discipline and others may lose their trust in you. Other employers engaged in sensitive work employ similar risk control processes and require disclosure.
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The Army Reserves College Loan Repayment Program
Members of the Army Reserves are eligible to receive some loan forgiveness benefits as well, though its not quite as valuable as what the regular Army Soldiers get .
After their first year of service, Army Reserves personnel will receive annual forgiveness of up to 15% of their outstanding principal balance, or $1,500 .
I cover the Army Reserve CLRP benefits in detail at the same link above, so please click it for additional information.
Other Ways To Pay Off Debt
Of course, working with a debt management company means that you’ll pay a fee to the firm for its help in consolidating what you owe and negotiating rates with your creditors. For example, Money Management International charges a monthly fee to clients, which is calculated before they sign up to work with the company.
It is also possible to manage your debt on your own, and negotiate lower interest rates with creditors. Many people use strategies such as the avalanche or snowball methods, and are able to successfully get out of debt without any paid help.
Of course, repaying debt on your own can require a certain level of financially savvy and discipline. Some may prefer to have extra help along the way.
For Sandy Wilsnach, 52, the $50 monthly fee she paid to work with Money Management International was well worth it, given the amount of money her family ultimately saved. Working through the process with professional help also meant they got a crash course in personal finances and learned how to better manage their money going forward.
“The thing that my husband and I realized is how much we were actually dependent on credit cards,” said Wilsnach, who served in the U.S. Navy for five years and now lives in Baldwin, Wisconsin. “When we didn’t have them anymore, we had to make some serious life changes.
“We had to learn how to budget and to stick to it.”
“We knew that eventually our end result was that we wanted to buy a house and that is what we did,” she said.
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But Watch Out For Interest Accumulation
Above, I mentioned that you will receive payment based on the outstanding principle balance of your student loans, which unfortunately means that interest is not covered by traditional military student loan forgiveness program benefits.
And that means that any interest that has accumulated on your student loan debt will remain entirely your responsibility, which is a bit of a bad deal, because the thing that makes student debt so expensive is the compound interest, which racks up tons and tons of debt over long periods of time.
However, do keep in mind that you can still save up to $65,000 in total benefits by getting access to military loan forgiveness benefits, so its not that big of a problem, and certainly not one that should lead to you giving up on pursuing these benefits.
No matter how you look at them, the amount of money you could be saving via the military loan forgiveness programs is huge.
Submit Your Application 5interview
The next step is an interview with a military career counsellor it is your official job interview and a very important step. The application process is very competitive and you will be asked questions about your work history, knowledge of the Canadian Forces, and understanding of the job you selected.
Joining the Canadian Armed Forces
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Reducing Behaviors To Numbers
Your credit report is often considered a direct reflection of the financial risk you represent to an employer, lender, or other entity. Every day, employers, insurers, lenders, cell phone providers, and others make decisions about who they think will be reliable based on information in your credit report. Its not personal.
These organizations simply crunch the numbers and base their decisions on the law of averages. The way to get that in your favor is to increase your credit score.
Joint Forces Credit Unions
The MOD has arranged for three credit unions to deliver saving facilities and access to safe, affordable loans. These are Plane Saver Credit Union, London Mutual Credit Union and the Police Credit Union. Due to technical limitations, only these credit unions are enabled to receive payroll deductions through DBS .
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S Best Military Loan Forgiveness & Loan Repayment Programs
Military Personnel have access to a wide variety of loan forgiveness benefits, via several different programs, including:
- Loans that were made, insured or guaranteed under the Federal Family Education Loan Program
- Loans that were made under the William D. Ford Federal Direct Loan Program
- Loans that were made under the Federal Perkins Loans program
- Loans that are incurred for educational purposes and:
As you can see, this severely limits which student debt is actually eligible for CLRP benefits.
I run into people all the time who ask why they havent been getting disbursements, and sometimes its as simple as the fact that they didnt pay close enough attention to eligibility guidelines.
For example, Im constantly getting hounded by service personnel who tried to get repayment benefits for private loans, but thats not possible via CLRP.
How To Apply For Tpd Discharge
The service member or their family should reach out to the Department of Veterans Affairs and US Department of Education to submit an application. With the application, you will need to submit documents on your TPD and how it prevents you from being employed.
This article was written by Carolyn Pairitz Morris, Senior Editor at Earnest.
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Army Criminal History Waivers
Joining the military is not for those “with nowhere else to go.” The military requires applicants to be of good moral standing. This means a recruit must not have committed any serious crimes. Misdemeanors, by nature and definition, are not necessarily serious crimes like a felony would be, but depending on the severity of the issue, number of times a misdemeanor was committed, and at what age it was committed, a recruit may apply for a waiver.
Any applicant for enlistment in the United States Army who has received two, three, or four civil convictions or other adverse dispositions for a misdemeanor offense requires a waiver. The waiver approval authority is the recruiting battalion commander, acting commander, or executive officer. There are felony waivers, but the approving authority is much higher, and the likelihood of approval is lower.
The Air Force College Loan Repayment Program
Repayments for the Air Force College Loan Repayment Program are issued for up to 33.33% of the current principal balance of the soldiers federal student loans annually, or $1,500, whichever is greater, after their first year of service has been completed. Similar to the Navys program, benefits cap out at $10,000 in total loan forgiveness.
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Private Student Loan Relief Programs
The hardest form of student debt to get rid of is certainly private debt, because there are far fewer avenues available to eliminate it.
Why? Because it isnt subsidized by the Federal Government, and because Federal regulators have mostly left the industry alone, choosing to let lenders and servicing companies basically run wild with the way that they handle collecting on their outstanding loans.
And thats created a terrible situation for many borrowers who desperately need Help with Private Student Loans, but on the bright side, there are a few ways to get assistance with private debt, including:
Submit Your Application 3aptitude Test
You will take an aptitude test to determine which military occupations are the best fit for you. Preparation is key so make sure you are well rested, healthy, on time, and careful with your answers. You will be tested on verbal skills, spatial ability and problem solving. It will take approximately 60 minutes to complete a series of three Canadian Forces aptitude tests. The following practice aptitude test will provide you with an example of the style and structure of what you will experience when you write the real test at a Recruitment Centre near you.
You will also complete a personality inventory which provides information on your personal characteristics and qualities. To learn more about your personality and how it can influence job choices, check out this personality assessment.
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Can You Join The Military With Debt
Given that we live in a military town and as a San Diego debt relief attorney, I am often asked if you can join the military with debt. People also ask me if there is a military credit requirement to join. The military is more concerned if you owe people money in general. If you are trying to enter the military with lots of debt, then they are concerned you could be tempted to do illegal things to take care of your outstanding debts. The military wants to know you are a reliable and responsible person. When considering joining the military with debt and wondering if you can you join the military with bad credit, its more of an issue of whether you owe people money rather than what your credit score looks like.
You can watch our video for this blog post below or continue reading below:
Va Program: Home Loans For Veterans
Taking advantage of VA mortgage rates is one of the top benefits of being in the military. VA home loan rates are typically lower than those for conventional loans. The Veterans Administration guarantees up to 25% of the payment on VA home loans, which means no private mortgage insurance or down payment is needed. Learn more about the guidelines and requirements for this extraordinary military benefit.
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Joining The Military With Debt Anyone
Ive been going through some of the subreddits and have seen quite a few posts about people questioning their ability to join any of the branches with a higher than average amount of debt. I know the Air Force has a standard to measure a new recruits debt to income ratio.
But, my question is simple. Has anyone reading this been able to get past this threshold and join with a pretty good amount of debt? Either with waiver or not? I would love to hear your stories/advice/experience with this topic.
I think it’s security clearance based. I have prior delinquent debt i’ve been working down since my divorce. When i enlisted, i tried to get into an MOS with a TS clearance, but was denied. It’s mainly about how can you be influenced by a foreign party to release TS information in exchange for money for the debts. The army knows nothing specifically about your character. So, it’s a red flag going in. I heard it’s easier to get a hold of the clearance when you’ve been in for a while and the military is more aware if you’re a shit bag or not. But, that’s purely anecdotal. Best of luck either way!
What If My Loans Arent In Good Standing
One thing to keep in mind is that most of the Federal assistance programs outlined above are only available to people with loans in good standing, meaning that youve remained in repayment status by making your monthly payments.
If you run into trouble, and end up with loans in Delinquency or Default, or God-forbid, you get slapped with a Wage Garnishment, then you will definitely want to review my Guides on:
Hopefully these will help you get back on track, either into Repayment status, or at least ending the wage garnishment that steals funds directly from your paycheck!
If you dont think itll be possible to get your loans back into good standing, then I would highly recommend you review your options for attempting a Federal bankruptcy discharge, which Ill outline below.
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What Jobs Qualify For Pslf
Public service positions include any Government work, meaning being employed by the Federal Government , a State Government, or a local Government position, or working at a Non-Profit.
Keep in mind that jobs with the Police, Park Rangers, Firefighters and other similar civil agencies are all technically Government positions, and that since so many ex-military personnel move into these fields, theres a pretty good chance you may end up qualifying for PSLF even if you do leave the military.
One final eligibility condition for PSLF is that your 120 payments must be made while youre enrolled in one of the Income Based Student Loan Repayment Plans, which as of this year, means you have to be enrolled in the Pay As You Earn Repayment Plan , the REPAYE Student Loan Repayment Plan , the Income-Based Repayment Plan , or the Income-Contingent Repayment Plan .
Youll have to do some research to find out if this program will actually benefit you, because some federal student loans end up being totally repaid by the time theyve been in active repayment for 10 years, but PSLF is literally the best forgiveness program for the vast majority of Federal student loan borrowers, and especially those who dont make much money, and who have huge amounts of debt.
S For Joining The Military
Start by doing some research about your options for joining the military. Learn about the six active-duty branches and their part-time counterparts. Know the main differences between officers and enlisted members. And explore the career fields you can enter for each branch.
Once you know which branch youre considering, contact a recruiter. A recruiter will give you an overview and answer your questions about that service. If youre interested in more than one branch, contact a recruiter for each. If youre interested in joining as an officer, the recruiter will explain any options you may be eligible for.
If you decide to enlist, you will report to a military entrance processing station . Youll spend a day or two completing pre-enlistment steps. These include taking the ASVAB, having a physical exam, meeting with a career counselor, and if youre accepted, taking the oath of enlistment. From there youll receive orders for basic training, usually to start within a few weeks. If you enrolled in a delayed entry program, youll go home and get orders for basic training within a year.
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