Financial perks for service members

Mike Hunsberger, former member of the U.S. Air Force and founder of Next Mission Financial Planning in St. Charles, Missouri, breaks it down.

Q: Faced with a tough labor market, military recruiters are offering potential recruits bonuses and incentives. What should a young person consider before joining the military? A:

People should think about their longterm goals. You get to do things you never imagined — the places you might go, the people you’ll interact with.

The experience and job training you get have a lot of application to careers outside the military.

In my case, I qualified for a three-year ROTC scholarship for the last three years of undergraduate studies at Rochester Institute of Technology in New York. I got my commission and started active duty right after I graduated. When I was in college, I was pretty sure I would leave after my four-year commitment. I ended up staying 25 years.

Q: What does the military offer from a financial standpoint, particularly when it comes to the cost of housing? A:

New recruits may be living in a dormtype setting, in which case they receive free housing in addition to their base pay. Once they move out of the dorms, they’ll qualify for a tax-free housing allowance, a monthly subsidy covering all or part of their monthly rent or mortgage payment. If they buy a home, they’ll qualify for a VA home loan, which offers competitive interest rates and requires no down payment (although there’s a funding fee of up to 3.6%).

Q: What about educational benefits? A:

The Post-9/11 GI bill will pay for the equivalent of a four-year college degree — or up to a certain amount per academic year for private colleges and foreign schools; currently, it’s $26,381. You’ll also get a housing stipend and money for books and supplies. (Longtime service members may also transfer the benefits to their spouse or children.)

In addition to the GI bill, there are scholarship programs that will fund your degree while you’re in the military.