Hypothetical Question: Military Draft and heavy Student Loan Debt

[Poncho_NM]

Topic/Title of this thread is:

Hypothetical Question: Military Draft and heavy Student Loan Debt ,

so let's stay there

[macjr82]

Originally Posted by chucksnee

I don't think there will/would be a draft....

One thing that many retired people know (and many don't know) they are eligable for recall until age 65.

If you get out (ETS) you are on the ready reserve list until your 8 years are completed.

So, people like me, retired at 38 (in 2009) can still be recalled. I know about 30 - 40 people who are this situation, just this year....

Often why the IRR is referred to as the backdoor draft, along with stop-loss

[Army_Guy]

And if you are a commissioned officer, you can be indefinitely recalled unless you resign your commission.

As for the draft and student loan scenario, I would think the loan companies would suspend repayment for a period of time, much like they did when I was deployed. Interest still accrued, of course.

Military deferrment is what it's called. Even though the Army is paying my loan, I still deferred it.

I do know that student loan repayment for OCS is a maximum of $65,000. You will pay tax on that amount, though. It's actually a good system on how the tax is handled. They pay in 3 equal installments. Say you owe $30,000. The Army will make 3 installments of $10,000 but they won't pay $10,000. They will pay $10,000 minus the tax of what you would pay as if that $10,000 were income so you are not hit with a potentially heavy tax bill at the end of the year.

[dmarie123]

Originally Posted by Poncho_NM

Topic/Title of this thread is:

Hypothetical Question: Military Draft and heavy Student Loan Debt ,

so let's stay there

Sorry- I was just trying to illustrate that those in the military can afford to make payments on student loans. The assumption seemed that you wouldn't be able to pay your loans if you were drafted. Some people who see a pay decrease, in which case, they could request student loan payment deduction under current 10% of discretionary income max payment laws. Many would see an increase in pay, in which they could make their payments.

I see it as a non issue that the military needs to address if there is a draft, because there will be an ability to pay.

[Submariner]

Originally Posted by ragnarkar

Just out of pure curiosity, if there's a legitimate need to reinstate the Draft in the future and most Draft-eligible candidates are saddled with student loan debt, what changes would need to be made? I'm assuming that the average pay for a Draftee will not be adequate for making the minimum payments for this persons' student loans, and that he will have to quit his/her higher paying job to fulfill the draft requirements...

None of us have a good crystal ball.

Most of us work on the assumption that we will never again require a draft.

You are under an assumption that enlistedmen do not earn enough to make minimum payments on their loans. I think that your assumption is in error. If minimum payments on loans can't be more than 10% of discretionary income; the loan repayments would be adjusted.

[CaptainJack87]

Everybody should be required to serve in the military for at least a year or two.

Maybe that will decrease the number of entitled pansies that we see in this country all too often.

[chucksnee]

Originally Posted by macjr82

Often why the IRR is referred to as the backdoor draft, along with stop-loss

IRR is 8 years, if you do your first 4 then get out, you are on IRR for 4 years....total 8 years.

That is different, when you retire, you can be called back till.....???

[Poncho_NM]

Thread Closed.