<p>I read on another board the following advice for plebe parents and I am now confused about the financial arrangements, can someone enlighten me please?</p>
<p>"These are recommendations from parents over the years:</p>
<p>Scholarship money can be applied not only to the incoming fee but also to the loan which is automatically taken out to cover computer, uniforms etc. (That is if the scholarship can be used that way according to their conditions.) I would have had my son applying for a lot more scholarships so his loan would not have been as large. "</p>
<p>There is a fee for all midshipmen upon entering the Academy of $2,400 for uniform and computer expenses. They allow a low-interest loan to be made for it, or scholarships, etc. At least that's how it is for me. I'm enlisted though.</p>
<p>I thought I understood that the "fee" went away with the Class of 2012 or 2013?</p>
<p>REALLY?! That would be absolutely FANTASTIC. </p>
<p>I'm enlisted.. so I never got any word on any of that. I was pretty much on my own in getting the package completed... so there are still a lot of things I'm trying to figure out.</p>
<p>And the OPNAV instruction I was using is probably outdated anyway.</p>
<p>Someone PLEASE confirm this.</p>
<p>There was no fee for the Class of 2012.</p>
<p>GoNavy! are you sure of that? I remember there was early rumor of that which later was found false, I thought.</p>
<p>I am 100% sure. </p>
<p>They probably did sign a "loan paper" that day, as all those new uniforms and shoes had to be "paid for" somehow. But prior classes had to pay some sort of fee up front. 2012 did not.</p>
<p>Well, there you go! Good to know. But what that would seem to indicate is that the fee did not disappear. Rather, it's the Mid's responsibility to pay for it via payroll deduction vs. coming outta ma and pa's kettle. Yes?</p>
<p>Yes. That seems to be the case. </p>
<p>I'm curious what happened in prior years. The plebes this year get $100/month net pay--after all those deductions. I imagine a similar net pay for prior classes..is that true? Even though they had to pay a fee up front?</p>
<p>The deposit was rolled into ACE (Allowance for Clothing & Equip) loan for class of 2012. Our son had some scholarship money applied to his ACE loan. This does not change his monthly pay. He gets the same 100.00 per month as a plebe. He will most likely see that money in his Held Pay check this summer.</p>
<p>Go Navy - </p>
<p>I wonder the same thing. My guess is that they will have a longer payback time.</p>
<p>If I am not mistaken my plebe had to sign a loan of around 8000 dollars. He is in 2012.</p>
<p>Please don't count on a certain amount of money being seen from the help pay account. It can be a surprise or a disappointment. Also, if you do get too much back and have not squirreled it away your Midshipmen will be looking to pay for books etc. - out of their or our pockets. I Started paying for books this semester and it was not cheap. :)</p>
<p>
[quote]
Class of 2010 Enterance fee was $2500 and the ACE Loan was $6500 and intial stipend was $845.67 for a total of $9845.67 At the end of July they got $50.00 pay, had already spent 354.59 on fixed deductions, $28.00 on activity fees, $5678.80 on Variable deductions - Mid Store (Computer) Uniform, and Books. Please note this is for a Male Females have higher Uniform Expenses.</p>
<p>ACE Loan balance was still 6500 and Held pay was at 3733.28 </p>
<p>Starting in September Pay went to $100.00 for the rest of the fiscal year
ACE Loan started repaying in November - $100 per month, went to $150 per month in January, $200 per month 3/c year, $250 per month 2/c year. Pays off at the end of second class year. There is no held pay after 2/C year and pay becomes variable every month depending on deductions. This information was published in Midshipmen Stipend and Annual Budget Booklet 20 July 2006, including projections for future budgets.
[/quote]
</p>
<p>The information on ACE loan will come in the permit to report package. No guarantee that last year's process will be the same given budget constraints and all. Maybe something that the BGO's could find out.</p>
<p>Bottomline seems to be, nothing's changed beyond who and how it gets paid.</p>
<p>btw, while Profmom's experience can occur absent of watching one's pennies, we know many Mids who in fact have been thrilled with their perceived windfalls, some not even realizing it is their money, somehow thinking someone's given them a 'gift' ". </p>
<p>Sorta reminds of the budget plans being offered to parents and various taxpayers these days. :eek: :( "Let's go to lunch." "Who's buying?" "Hey Uncle Sam!" "But that's my name." "Hey, don't get mired in the details." "Make mine liverwurst ..." :confused:</p>
<p>^^^Same goes for that second class loan - it is fun spending it for two years before they figure out they really do have to repay it! Can we say Ensign mobile... Shinny new cars of large value are sure fun until the monthly bill hits.</p>
<p>I Have official word - There is NO up front fee of $2,500 for uniforms.</p>
<p>I called my Point of Contact, the Chief, who is the Regional Director for the Academy. He confirmed it for me.. that fee was eliminated.</p>
<p>Wonderful news.</p>
<p>Thanks SuperDoc!! I was pretty sure we had read that somewhere but could not locate it. Definitely good news!! Thanks again.</p>
<p>For the sake of clarity and accuracy: The fee remains. It is simply recovered from attaching each Mid's paycheck. Stay or otherwise, the Mid is responsible for its payment. And payment can receive relief through the ACE process, in the event that a Mid has received outside scholarship monies available to him/her.</p>
<p>So, mom & dad, celebrate. For you, indeed the news is "wonderful." Your financial responsibility has been pushed to your child. Go buy the pool table or that Vespa scooter you've been dying for for 20 years now. </p>
<p>Future Mids, beware. Your news is not so "wonderful." You've gotten the short shrift of the "not-so-free lunch."</p>
<p>Isn't this exactly the misunderstanding that Fannie and Freddie promised?</p>
<p>Or for those who remember Wimpy from Popeye days ... "I'll gladly pay you Tuesday for a [computer] today."</p>
<p>Whistle Pic... could you clarify this a little further?</p>
<p>So.. the $2,500 fee is deducted automatically from each Mid's pay check while at the Academy, correct?</p>
<p>The reason I said it was wonderful news is that I won't, upon entry, have to take out that sum from my account and give it away. If what I asked above is true, this is still good news. Since EVERY mid will have to pay that fee, and it will be implemented in their direct-deposit system, it will be like the money was never there in the first place.</p>
<p>I understand what I said may seem childish in ways, but in my opinion I think it's better that they deduct it themselves instead of me having to give the money up upfront or set up a stupid loan through Navy Federal or something to cover it.</p>
<p>Remember it is added onto the ACE loan so you will be in debt and additional $2500.00. If you are seperated for any reason you owe the Acedemy now both the 2500.00 and the amount on the ACE loan. By the numbers above if you seperate from the Academy at the end of July you would owe the academy $6111.39 and at the end of Plebe Summer owe the Academy $9723.43. It all sounds good that you do not pay upfront but do not lose sight of the fact it is a loan, and should you leave you have to pay it back.</p>