Two of the largest banks used by military members have announced their programs to assist customers if a government shutdown delays pay. Both USAA and Navy Federal Credit Union (NFCU) offer interest-free loan program to eligible customers if pay is interrupted. While we all hope that the government does not shut down, and military pay is not impacted, it is a distinct possibility.
Once again, USAA has announced the programs available to members if a government shutdown delays military or government pay. Per Roger Wildermuth of USAA, “We’re once again prepared to offer our payroll advance loan to military members with direct deposit at USAA – in the event military pay is delayed.” I know this is a great comfort to the many folks who bank with USAA.
If the government shuts down tonight, 8 February 2018, the 15 February 2018 paycheck will only include wages paid from 1 to 8 February 2018. If this happens, USAA is prepared to offer an interest-free payroll loan to cover the shortfall of the paycheck, if you meet the eligibility criteria and live in a location where USAA is able
Eligibility requirements include, but are not limited to:
- Must have current direct deposit of government payments with USAA Bank and at least two months of consecutive direct deposits of such payments.
- Loan amount is based upon two weeks of your normal direct deposit.
- Loan maximum is $6,000.
- Must be in good standing with USAA.
- This offer may not be available to members permanently stationed in certain overseas locations.
If the government shuts down, USAA will send emails to eligible customers with a loan offer and specific details of the program.
Don’t fit into this group? Contact USAA directly at 1-800-531-USAA (8722) to discuss your specific situation.
Navy Federal Credit Union
Navy Federal Credit Union (NFCU) has expanded eligibility for its interest-free government shutdown loan program. Eligible groups now include:
- All Federal government employees, including the Department of Defense
- Active duty servicemembers of the Army, Marine Corps, Navy, Air Force or Coast Guard
- Army or Air National Guard on federal active service
- Officer Candidates of the Armed Forces
Tynika Wilson, senior vice president of debit card and funds services at Navy Federal, explains, “We encourage members who could be impacted by the shutdown to check with us to see if they’re eligible for support. While we hope the government can avoid a shutdown, we want our members to know we’re here for them.”
The interest-free government shutdown loan program does not require a credit check but does require that you apply for the program. If the government does shut down, Navy Federal will open up the application for the loan program on their website, via the mobile app, and through telephone service.
This loan will be for an amount based upon the amount of your missing or reduced deposit:
Repayment will be made via automatic debit for the same amount as the loan, on the date that back pay is received or 60 days after
you receive the loan deposit, whichever is earlier.
Disability pay and other VA benefits should not be impacted by a government shutdown due to a lack of budget.
If you have questions, please ask them in the comments and I’ll try my best to find answers!
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