ACE Loan

[2013Parent]

<p>Hi, I've been a browser of these forums for some time, however I had a question on the Ace Loan that all new mids take out on I-Day.</p>

<p>I know that 2012 took out a $8500 loan, but how will this be repayed? Will this be deducted from his paycheck at the academy, or will it be like a normal college loan and simply be repayed when he graduates?</p>

<p>Also, if the worst happens, and god-forbid - he gets seperated from the academy (grades, medical), would he have to still repay that loan, because as I understand it covers items such as uniforms and stuff, things he could conceivable return.</p>

<p>I know I'm being a little worryful here, but I always prefer to plan for the worst and build up for there, a little something I learned from my own horrible experience taking loans for college.</p>

<p>Thanks!</p>

[navy2010]

<p>I can only address the first question- repayment is deducted automatically from your mid’s pay and will be “paid in full” well before commissioning.</p>

<p>I cannot answer as to what happens in the case of seperation- and hope you never need to know the answer to that one!</p>

[Profmom2]

<p>On the form that we received outlining both the ACE loan and “fee” (class of 2010 had an initial fee of 2500 and ace loan of 6500) it clearly states that the 2500 was non refundable even if you did not show up for IDay. The ACE loan is an interest free, government loan. to aid in the funding for initial issue of uniforms and supplies. (ACE - Additional Clothing and Equipment)</p>

<p>

*COMDTMIDINST 5400.6C Chapter 8 2006-2007 Midshipman Stipend and Annual Budget Book *
In the booklet issued to the class of 2010 called “Midshipmen Stipend and Annual Budget Booklet” states that deductions for the repayment of the ACE loan begin November of Fourth Class year, elevate yearly, and pay off the ACE loan in June of Second Class year. </p>

<p>From the chart in the booklet - The Class of 2010 started with a Held Pay (H/P amount of $9000.00 (ACE loan and entrance fee) Stipend of $845.67 for a total of $9845.67. In July they had fixed deductions of $345.59 - Taxes, FICA, Life Insurance, Mandatory Services - Laundry etc.; Fixed activity fees of $28.00 - MWF and Athletic Association fee; Variable Deductions of $5679.80 - That includes initial Uniform of $2993.00, supplies $2475.30, Books $211.50; Cash pay of $50.00 and finally H/P carry over to August of $3733.23 (Per the booklet each Mid must maintain a H/P balance of at least $440 before entering 3/C year)</p>

<p>In August they start with the 3733.28 of Held pay, receive 845.67 for a beginning balance of 4578.95. Their fixed deduction went down to 294.59 where it stayed for the rest of the Academic year. Activity fees were again $28.00 and the variable deductions were $3289.34 Cash pay $50.00 and H/P $916.91. As you can see the $9000 Entrance fee plus ACE loan have now been spent.</p>

<p>The Chart shows a budgeted amount for books first and second semesters at $330.00 - let me say this hardly covered half the book expense for either semester.

</p>

<p>If you have access to Brief Points by Ross H. MacKenzie USNA '94, published by the Naval Institute Press; he states that Midshipmen who separate during Plebe or youngster year will be asked to pay off all expenses and loans.</p>