Army aer loan rules1/13/2024 ![]() Over the years, AER has added things it will help with based on the needs it sees. Those needs could include rent and mortgage vehicle repairs emergency travel utilities and utility deposits funeral expenses medical expenses food paycheck problems PCS expenses appliance or home heating or cool repair or replacement loss of funds furniture replacement car seats and vehicle rentals. If it's a financial emergency, AER likely can help. What will Army Emergency Relief help with? Although the scholarship program for military children has an annual application deadline each spring, the spouse scholarship is awarded on a rolling basis. What does Army Emergency Relief do?ĪER can provide qualifying soldiers and their families with zero interest loans or grants.ĪER also has a spouse and dependent needs-based scholarship program. Instead, they must access AER help through their unit. Unlike other government debts, AER loans are not referred to the IRS.While most soldiers can take their problems directly to AER without going through their chain of command, those who have been on active duty less than a year, who have made two or more previous AER requests in the last 12 months, and those who exhibit "high risk" financial habits cannot. In 2014, AER receive $9.7 million in donations, while about $53.6 million in loans were repaid by soldiers.Ī previous version of this story incorrectly reported how loan repayments can be collected. That year, soldiers at Fort Hood, Texas, received over $5.3 million in loans and grants - more assistance than troops at any other base.ĪER is funded through donations, often contributed through soldier paycheck allotments. In 2014, AER distributed over $57 million in loans and almost $16 million in grants and scholarships. ![]() It's great that a trusted organization like AER can step-up and help them out." Junior enlisted members don't always have the savings when an emergency comes up. "It's great that AER is offering this to families so they have somewhere else to turn instead of going to those places. "We feel that anything is better than a high interest loan," said Amanda Anderson, a spokesman for the Association of the United States Army. Soldiers will also continue to be referred by loan officers to financial counseling from Army Community Services when appropriate, he said.Īrmy family supporters welcomed the change. Under the new policy AER employees will have the discretion to require commander or first sergeant approval for a new loan if they determine the soldier is high financial risk, Shields said. Soldiers who refuse to repay may be disciplined by their chain of command. Loans are generally repaid by paycheck allotment, which cannot be turned off by the soldier. Troops, regardless of rank, can also go through their commander for an immediate loan approval of up to $1,500. There is no loan dollar cap, though soldiers are limited to two AER loans per year without command approval. Applicants fill out a request form and provide documentation showing their needs. The change was approved in July by AER's board of 20 managers, including Dailey.ĪER provides soldiers with interest-free loans or grants on a case-by-case basis for needs such as emergency travel, food, utilities, rent or medical expenses. ![]() "We think this is the right thing to do." "The whole idea is to make assistance more available to soldiers and their families," said Guy Shields, an AER spokesman. Many of them send troops into a spiral of debt. But those loans frequently come with very high interest rates, sometimes above 300 percent, according to a 2014 report from the Consumer Financial Protection Bureau. Payday lenders often open shop directly outside military bases, creating a convenient way for service members to receive quick loans.
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