maxpayne wrote: womeninblack wrote:
Wow! Thanks for that powerpoint. Very informative.
Yeah, that's sort of misleading. But, $45k is still better than $0k.
There are a couple of misleading things. First, and most importantly, how much you actually get out of the SLRP program depends on how much you have in student loans. The program runs 3 years, and each year you get up to 1/3 of the amount applied to your existing loans. The caveat is that they look at your existing eligible loans and only authorize SLRP payments in an amount that does not exceed 1/3 of the amount of each loan. In other words, if you had a loan of $60k, you do not receive $20k each year. Instead, not accounting for the 28% of tax that's withheld from your payment, you get $20k in year 1 (formula: 60000*33%=$20000). In year 2, you only get $13,333 (formula: 60000-20000 leaves 40000; 40000*33%=$13333). In year 3, you get $8,900ish (40000-13333=26667; 26667*33%=8900). In these circumstances, you will not have all of your loans paid off by SLRP. This also is not made clear by AF promotional materials, but it is clear in the text of the statute that authorizes SLRP. I fell into this odd category, and it was quite a disappointment when I learned that the AF would not, in fact, cover the entire amount of my student loans even though the program is authorized to pay a total amount that was more than what my loans were. But something is better than nothing, as they say.
Second, to clarify the GI bill aspect, your eligibility for the GI bill does not accrue while you are accepting SLRP payments. If you stay in for 6 years, then you can get the full 3 years of SLRP. Years 3-6 you would establish your eligibility for the GI bill (I think it takes 3 years, although I am not completely sure). If you wanted to transfer your GI Bill to your kid, however, I believe you'll run into problems if you don't stay in for longer than 6 years because of the additional service commitment required to transfer. Something to consider if your student loans were low enough that the 1/3 rule limits the amount of SLRP you'll get and you intend to transfer your GI Bill benefits to an eligible dependent.