- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
USAA New Officer Loan
Posted on 1/19/15 at 2:58 pm
Posted on 1/19/15 at 2:58 pm
USAA offers a 1-time loan for new officers - $25k at 2.99%, unsecured.
I'm thinking about taking it but am trying to decide what to do with it. I have about $43k left in student loans at 6.5% so I could throw it at these loans for a better rate - but then I would lose the benefit of deducting some of that interest come tax time. This year I paid about $2900 in SL interest.
Alternatively, my wife and I only put about half the allowable amounts in our Roths for 2014 (new baby, she didn't work, etc.) so I could take some of the USAA loan and top off our 2014 Roths, and get a head start on our 2015 Roths - or in some other investment vehicle with a better return than ~3%. Or some combination of the above.
Thoughts are appreciated.
I'm thinking about taking it but am trying to decide what to do with it. I have about $43k left in student loans at 6.5% so I could throw it at these loans for a better rate - but then I would lose the benefit of deducting some of that interest come tax time. This year I paid about $2900 in SL interest.
Alternatively, my wife and I only put about half the allowable amounts in our Roths for 2014 (new baby, she didn't work, etc.) so I could take some of the USAA loan and top off our 2014 Roths, and get a head start on our 2015 Roths - or in some other investment vehicle with a better return than ~3%. Or some combination of the above.
Thoughts are appreciated.
6
Posted on 1/19/15 at 3:31 pm to NaturalBeam
quote:
This year I paid about $2900 in SL interest.
FYI you can only deduct up to $2,500 if that affects any of your thinking.
Posted on 1/19/15 at 4:51 pm to NaturalBeam
Do they still have SLRP(student loan repayment program?) you need to look into it. If they don't have it anymore, I wouldn't advise getting the loan with the debt you have, your wife not working, and a baby.
Posted on 1/19/15 at 6:21 pm to NaturalBeam
quote:
USAA offers a 1-time loan for new officers - $25k at 2.99%, unsecured.
I see nothing obviously wrong with your plans. It's a great rate for unsecured debt. It isn't as low as the rate of inflation (then it would be free money) but it's close enough that it's good to just get the Roth fully funded.
I'd top off the Roths first, then pay down the student debt, since even after the tax deduction the effective rate is higher than 3%.
BTW the normal rules about keeping a savings account umpteen months long don't apply nearly so much. You aren't getting laid off anytime soon.
Posted on 1/19/15 at 7:09 pm to NaturalBeam
Congrats sir, I had no idea 
Posted on 1/19/15 at 7:38 pm to NaturalBeam
Btw the career starter loan is now $36,000 at .75 interest.
Posted on 1/19/15 at 9:45 pm to 13SaintTiger
I should've done it when I was leaving TBS but the thought of taking out a loan at that stage in my life was no bueno.
Just don't blow all the money. Lots of my fellow officers blew it all on cars, guns, booze, etc.
Just don't blow all the money. Lots of my fellow officers blew it all on cars, guns, booze, etc.
This post was edited on 1/19/15 at 9:46 pm
Posted on 1/19/15 at 9:46 pm to Azazello
quote:
Lots of my fellow officers blew it all on cars, guns, booze, etc.
At least they didn't waste it.
Posted on 1/19/15 at 10:40 pm to NaturalBeam
quote:
USAA
If you don't use them for all, or at least some, of your banking needs, you should really look into that too. Not the best when it comes to savings rate and cd %'s, but their service is unmatched and that is worth it at least to me. I do almost all, checking, saving, credit card, car loan, car insurance, and renter's insurance through them. Got my mortgage when I bought my house with them as well. My IRA is the only thing I don't have with them. Great company.
Posted on 1/20/15 at 1:58 am to P0SEIDON
I use USAA for savings, checking, and insurance. I also have a Navy Fed account for savings and checking as well. If you can get started, they are great. They are also a major client of my company, so I enjoy seeing them do well.
Posted on 1/20/15 at 9:03 am to LSUShock
+1 on USAA, esp for car loans. Great rates, everything can be done online so quickly. Also great customer service.
If the rate is really .75, then take that sucker out and use it to reduce your other higher interest debt. Keep paying aggressively on the higher interest loan while paying the minimum on the lower one. Don't flake out during the loan period, and make sure you are carrying enough life insurance to cover those loan balances so you don't leave your spouse in the lurch should the military send you someplace risky.
If the rate is really .75, then take that sucker out and use it to reduce your other higher interest debt. Keep paying aggressively on the higher interest loan while paying the minimum on the lower one. Don't flake out during the loan period, and make sure you are carrying enough life insurance to cover those loan balances so you don't leave your spouse in the lurch should the military send you someplace risky.
Posted on 1/20/15 at 9:21 am to hungryone
I used it when I commissioned. I only needed about 12.5k at the time so I just took the rest and put it right back towards the loan.
I've known many an officer who used the loan to play the stock market. Not recommending it, but if you're knowledgeable and comfortable with that, it may give you a nice little return.
I've known many an officer who used the loan to play the stock market. Not recommending it, but if you're knowledgeable and comfortable with that, it may give you a nice little return.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News