The USAA Career Start Loan is a unique loan Personal loanstyle=”text-decoration: underline”> which offers low interest rates usually reserved for secured loans with collateral. Loan amounts can be up to $36,000 with payment terms up to 60 months. The interest rate is the same regardless of the term. Those without a solid credit scorestyle=”text-decoration: underline”> is eligible for USAA loan.
Low interest loan for those with little or no credit. Many people in their early twenties don’t have enough credit to qualify for a credit card, but this low-interest loan is guaranteed for those attending a Service Academy. Cadets and Midshipmen can get up to $36,000 at 0.75% interest. They can receive the loan as early as their first year. This loan is guaranteed for Service Academy Cadets and Midshipmen regardless of creditworthiness.
Cadets and midshipmen commissioned through the Reserve Officer Training Corps (ROTC) collegiate program and Officer Candidate or Training School (OCS or OTS) may qualify for up to $25,000 at 2.99%. ROTC cadets and midshipmen can receive their loans as early as 12 months before commissioning, and officer candidates up to four months before. Cadet and Midshipman loan for ROTC and OCS/OTS is subject to credit approval. The USAA has not published the minimum score requirement, but many have qualified for the loan even with poor credit.
Flexible payment terms. The loan can be repaid over 12 to 60 months. Unlike most loans, where the longer the term, the higher the interest rate, the interest rate with a USAA Career Starter Loan remains the same regardless of the term.
For Service Academy graduates, loan repayment begins up to two years after you receive it. The first due date is August 15 of their commission year. The first due date for ROTC graduates is six months from the date of their commission. OCS/OTS graduates and military officers who receive their loans within one year of their commission date will be required to begin loan repayment 30-45 days after their contract date.
No collateral required. Generally, the only loans with interest rates as low as 0.75% to 2.99% are secured loans. As a signature loan, however, no collateral is required to qualify for this loan. Military officers are obligated to serve three to five years after their date of commission. USAA understands that officers’ pay and job stability put them in a position to repay the loan.
No prepayment or setup fees. There are no setup fees or prepayment penalties. USAA also offers a 15-day grace period without penalty. However, after 15 days, the penalty can reach 5% of the monthly payment.