11-13-2013 09:19 AM
The government shutdown that began on Oct. 1 has not affected active-duty military pay. But USAA Bank remains ready to offer a zero-interest, 0% APR payroll advance loan to affected members if the next federal budget issue — the debt ceiling — disrupts pay to active-duty service personnel.
Solutions From USAA
Potential Payroll Advance Loan
In the event of a debt ceiling impasse that threatens military pay, USAA Bank is prepared to offer a zero-interest, 0% APR payroll advance loan to members of the active-duty military, including the National Guard and Reserves1, plus military retirees and VA and Social Security recipients who have existing direct deposit of government payments at USAA Bank. The loan would be approximately equal to your expected direct deposit, or half of your expected direct deposit if you are paid monthly.
USAA has several solutions to help members who receive a government paycheck and find themselves in financial distress because of federal budget issues.
These temporary arrangements include:
The debt ceiling, which is the total amount of money the federal government is authorized to borrow, could affect government operations as early as Oct. 17. Last-minute legislation sheltering pay for active-duty military personnel and certain supporting civilian employees from the current shutdown will not offer such protection if a debt-ceiling impasse threatens federal salaries and benefits later this month.
Affected members whose federal payments are delayed by such an impasse and who have existing direct-deposit arrangements at USAA Bank for active-duty military or military retiree pay, or VA or Social Security payments, may be eligible for the loan. If a loan offer becomes necessary, USAA will email those members and provide information in the "My Offers" section of usaa.com. We will also offer other solutions, including special payment arrangements to help USAA members who receive government payments and find themselves in financial distress because of a shutdown.1
What Can You Do?
The shutdown could affect many other people who depend on the federal government for income. If you're a federal employee or otherwise depend on government outlays to make ends meet, check these 5 Tips to Prepare for a Government Shutdown.
1 Must have current direct deposit of government payments with USAA Bank and at least two consecutive direct deposits in the past 60 days. Loan amount is based upon two weeks of normal direct deposit, and loan maximum is $6,000. Must be in good standing with USAA. The loan amount deposited into USAA Bank account will be automatically debited at the next scheduled direct deposit. Loan will not be funded if government payment is not interrupted.
2 Interest continues to accrue during any deferment periods.
Originally posted Sept. 26, 2013
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.