USAA Loan Will Cover Military Pay

As you probably know, the federal government is facing a new crisis next week: reaching the federal debt ceiling. This is the total amount of money the federal government is allowed to borrow. Without extending this debt ceiling, the Treasury is estimated to run out of money as early as 17 October 2013.

While the Pay Our Military Act protects military pay from disruption due to the lack of federal budget, it can not protect military pay if the Treasury is out of funds. As a result of this threat, USAA has announced the ways in which USAA will be able to help members if a debt-ceiling crisis delays pay.

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.

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 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.

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.

Other Options

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:

  • Special payment arrangements, which could include payment deferral, on some bank products.
  • Refunds of certain fees for credit cards and other USAA Bank products.
  • Early withdrawal of funds from certificates of deposit without penalties.
  • Billing arrangements for insurance products.

Members whose finances are affected by federal budget issues should call us at 1-800-531-USAA (8722).

Please be sure to read the entire announcement for eligibility, details and the legal stuff.

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.