Falcon Loan offers Airmen quick financial assistance without accruing dangerous debt

  • Published
  • By Staff Sgt. Austin M. May
  • 47th Flying Training Wing Public Affairs
LAUGHLIN AIR FORCE BASE, Texas --  Active-duty Airmen struggling with temporary financial hardships are about to be offered a helping hand.

The Air Force Aid Society recently announced its new Falcon Loan program, which offers Airmen up to $500 interest free beginning March 3.

The loans, which are being offered through the Airmen and Family Readiness Center, are intended to give Airmen an alternative to high-interest payday loans which can pull the recipient into a debt trap with career-threatening consequences. Some payday loans carry interest rates up to 500 percent, although they are capped by law at 36 percent for military members.

"We are relaxing the loan process in hopes that Airmen will feel less threatened to come forward for help," said Andrew Posey, Chief of the Laughlin A&FRC. "We hope that after getting a Falcon Loan, Airmen will feel a relationship that draws them back into the A&FRC for a follow-on visit to discuss their financial situation."

Falcon Loans are available to all Airmen currently on active duty, including Air Force Reserve and Air National Guard personnel on Title 10 U.S.C. orders. Officers are also eligible for the loans provided they have a genuine need for short-term financial assistance.

One aspect of the Falcon Loan program that was intended to help Airmen feel more comfortable using it is that they do not have to go through their commander, first sergeant or supervisor to apply.

"This is designed to help Airmen," Mr. Posey said. "We would prefer to catch financial issues before they become major problems, leading to disciplinary actions with career impacts. Financial problems can lead to loss of security clearances, reductions in grade and more."

Carla Rincones, A&FRC Community Readiness Consultant, said unlike some regular AFAS loans, budget counseling or financial management classes are not mandatory for Falcon Loans.

"It would be nice if we could pre-determine that we will not have more than a $100 emergency at any one time in our military careers," Ms. Rincones said. "However, the reality is emergencies happen. Sometimes the financial costs can make a significant impact not only on one's budget, but also their quality of life.

"Rather than having our men and women fall victim to a payday loan, the AFAS's Falcon Loan program is a safe alternative to assist with a financial emergency," she continued.

Mr. Posey stressed the point that although the Falcon Loan does not require chain of command involvement, it is not to be seen as "free money."

"We want people to come forward with genuine needs and if someone comes in needing the $500 loan, it's on them to certify they will use the funds as intended," he explained.

"It's up to us to be vigilant and gently remind folks that this loan should be used to satisfy a financial need, not just meet excessive lifestyle wants," he continued.

The maximum amount that can be loaned to an individual is $500, but options are still available for those who need more.

"If your need exceeds the $500 limit you should work with the AFAS caseworker at the A&FRC who will expand the application form to address your needs in depth to see what total assistance is needed," Ms. Rincones said.

Falcon Loans are not available to members still paying off a regular AFAS loan. However, servicemembers with a remaining balance on a Falcon Loan are eligible to receive a regular loan if a new need arises by using the standard loan/grant process.

Members are only allowed two Falcon Loans, but the first must be completely paid off before the second will be authorized.

"Falcon Loans are designed to meet short-term emergency financial needs, and are not intended to be a revolving line of credit," Ms. Rincones explained. "After two Falcon Loans, requests will have to be addressed by the Society through the standard process for AFAS financial assistance."

More information on Falcon Loans is available at the Laughlin A&FRC. Call 298-5620 for details.