<p>Your mids have just been offered a grand total of $65,000 in loans.</p>
<p>They have been offered the same deal by both USAA and Navy Federal.</p>
<p>$32,500
0.5% APR
Start paying 3 months after graduation on a 60 month plan
$552 a month.</p>
<p>If they default... interest rates go up to 18% for USAA and 11% for Navy Federal. They must have direct deposits going to both for them not to default (the catch).</p>
<p>Make sure they do smart stuff with their money.</p>
<p>To all parents of the class of 2010, 2011 and even 2012... your kids will be getting this as well (although maybe not from both banks).</p>
<p>Just some forewarning for all the parents out there</p>
<p>Thanks for posting this. Questions pop up every year about it. I'm curious as to what previous grads did with their loans as far as investing until they are actually ready to make other decisions with it. I pretty much know what my kid's thoughts are about it & they are clever to my thinking but I wonder what other folks have done. Anyone????</p>
<p>This is not uncommon to each of the academies and as I recall from West Point, the interest rate is the same as it was for our oldest son's class. It's another benefit of attending one of the finest schools this country has to offer.</p>
<p>Our nephew who recently graduated USAFA got a similar loan, but not a double offer as is being given here. The midshipmen are not required to take it, but most do.</p>
<p>K314.... That strategy may be better than the one I've been following for the past few years. At least, it's simple and quick.... no waiting around till the end of the year to figure out what Return<em>On</em>Investment will be.</p>
<p>If memory serves... slots actually have the best odds, but the table game with the best odds is Baccarat.</p>
<p>So if we decide to include the tux and a couple of martinis, shaken, not stirred, in there, I'm pretty sure I can fulfill all of my fantasies about being James Bond as well.</p>
<p>Wow, the rates and amount have changed. My s was offered $25,000 at 1% from USAA only (KP06). If he was offered from Navy Federal I never heard about it. It's dumb NOT to take it since you can just invest it for better return than 0.5 or 1%. He took it and did just that, I think he used a bit to buy a new computer. A lot of mids buy a car, as was said earlier a 1% (or now 0.5%) car loan, but his grad gift was a car since we didn't have to pay much for school. Unfortunately, a few of his friends just kept spending the loan without employment but eventually started working. At this point in my s' life I'm sure those payments are not hurting him, as he just upgraded to 2nd mate and already made too much for a kid his age :)</p>
<p>A good deal to take it, although I'm not sure I would have encouraged him to take both those loans if they were available. That much debt would make me nervous for someone just out of school, even with the earning potential these mids have.</p>
<p>You guys crack me up. And k314sig09, you need to stop hanging out with friends from low places who most likely encourage your little Bond fantasies. :rolleyes:</p>
<p>Before I could blink, the money is safely invested. Smart boy! They had some financial advisors on board when all of this took place. I feel sure he pretty well drove them nuts per the conversation I had with him telling me the questions he overwhelmed them with. Son said some of the kids took both opportunities. I'm kinda glad he only took one. I agree with kpmom06 that its alot of debt even though its "cheap" money to be had.</p>