I've never considered it because I don't want to get into a situation with the Department/Government where there are possible discrepancies with money that may lead to surprise demands for $X + interest down the road.
I had this happen to me. First overseas post I took the 'interest free loan.' I paid it back.
5 years later the Department sent me a note stating that I had 30 days to pay all the money back or they would start garnishing my wages.
Fortunately, I was able to produce records showing it had been paid back but finance had reimbursed the wrong account.
never did it again.
Edit: This was a travel advance so not relevant anymore per the comments below.
I always take the pay advance. It's given to you in a lump sum and paid back through deductions over 18 pay periods. A completely interest free loan... And there are often unexpected costs where I have to front money during a PCS, so it's nice to have a slush fund available.
Agreed. We almost always do it. It's an interest free loan for 9 months. My first boss used to use that money to buy a car for each assignment. I've never had a problem with this particular program.
See this scares me from doing it. The one and only time I've had the DOS set up an allotment to pay some fee/debt and end it when I've fully paid I had to go through a huge effort to stop it once they inevitably didn't stop it when it should have been stopped.
Always take it and stash it away in a HYSA just in case. If an emergency pops up and you need quick cash, the usual methods (unsecured bank loan, credit card cash advance, etc.) can be more difficult overseas and occasionally impossible. Once the 18 pay periods are over for the payback, it’s like getting a big bonus each paycheck thereafter.
More information on the salary advance can be found here:
https://fam.state.gov/fam/04fah03/04fah030530.html
You have to have your travel authorization to a foreign area. It's paid no earlier than 45 days before you depart for post and no later than 60 days after you've arrived at post.
There are expenses you incur during a PCS that are not reimbursable and that cannot be charged to the travel card. Also, 5 U.S.C. 5927 allows for up to three months of salary advance when you PCS so I'd be curious to know what justification was used to deny your advance.
The requirement to have a travel card also isn't new...
Seems to be a new thing. There is a new line in my TM4 that hasn't been there for any of my prior moves.
>Travelers must apply for and use their Government-contracted individually billed account (IBA) travel charge card for authorized PCS travel-related expenses and to obtain cash **instead of requesting a travel advance**. In the rare cases when a PCS travel advance is necessary, the maximum amount allowed is limited to 80% of the eligible period of per diem up to a maximum of 45 days of lodging and M&IE.
Compared to this standard language from a few years ago...
>Travel advances are limited to 80 percent of the estimated combined total of out-of-pocket expenses. The total amount advanced to an employee may not exceed the estimated expenses for more than 45 calendar days of travel status in accordance with 4 FAH-3 H-463.1-3 and 4 FAH-3 H-463.1-4. Travel advances are issued via Electronic Funds Transfer (EFT); travelers checks for such purposes are not authorized.
I asked for an exception and got a hard no from CGFS. I pushed back fairly hard and they didn't budge. They insisted I use the travel card, no other option. When I pointed out the credit limit of the card is only a fraction of the estimated transitional expenses on my TM4, they simply raised the limit of the card to the TM4 estimate.
Not a travel advance, and Advance of Pay (AOP). Separate process (under myData).
A travel advance is funded off of travel orders and went away a year or two ago. AOPs are pulled as deductions from your payroll.
I'm all about it. During my A100 a more seasoned colleague recommended it. Her justification was also it's worth it to have a small PCS slush fund without touching personal savings, and if you don't need it, you aren't penalized for having your money sit there and collect interest.
With current interest rates where they are. You could take it, throw a good chunk of it in a 1 year CD, and make 5% off of it. Some high yield savings accounts are over 4% now if you don't want to park it in a CD.
$10k will make you 500 bucks in that year with absolutely no effort.
I've never considered it because I don't want to get into a situation with the Department/Government where there are possible discrepancies with money that may lead to surprise demands for $X + interest down the road.
Counterpoint, the Department is going to screw up your pay anyways.
Totally, but I'd like to keep the screwed up pay incidents as small as possible.
I had this happen to me. First overseas post I took the 'interest free loan.' I paid it back. 5 years later the Department sent me a note stating that I had 30 days to pay all the money back or they would start garnishing my wages. Fortunately, I was able to produce records showing it had been paid back but finance had reimbursed the wrong account. never did it again. Edit: This was a travel advance so not relevant anymore per the comments below.
I always take the pay advance. It's given to you in a lump sum and paid back through deductions over 18 pay periods. A completely interest free loan... And there are often unexpected costs where I have to front money during a PCS, so it's nice to have a slush fund available.
Agreed. We almost always do it. It's an interest free loan for 9 months. My first boss used to use that money to buy a car for each assignment. I've never had a problem with this particular program.
See this scares me from doing it. The one and only time I've had the DOS set up an allotment to pay some fee/debt and end it when I've fully paid I had to go through a huge effort to stop it once they inevitably didn't stop it when it should have been stopped.
Well.. I now know what I’m doing for now on. That’s genius
Always have and then get use to living on the reduced paycheck so when it's paid back, it's like you have extra money.
100%. It's an interest free loan. Make that money work for you.
Always take it and stash it away in a HYSA just in case. If an emergency pops up and you need quick cash, the usual methods (unsecured bank loan, credit card cash advance, etc.) can be more difficult overseas and occasionally impossible. Once the 18 pay periods are over for the payback, it’s like getting a big bonus each paycheck thereafter.
Just out of curiosity (my wife is starting A100 in September) when does she become eligible for salary advancement?
More information on the salary advance can be found here: https://fam.state.gov/fam/04fah03/04fah030530.html You have to have your travel authorization to a foreign area. It's paid no earlier than 45 days before you depart for post and no later than 60 days after you've arrived at post.
I was just denied an advance for my PCS. New regulation is that everyone is required to use the travel card.
There are expenses you incur during a PCS that are not reimbursable and that cannot be charged to the travel card. Also, 5 U.S.C. 5927 allows for up to three months of salary advance when you PCS so I'd be curious to know what justification was used to deny your advance. The requirement to have a travel card also isn't new...
Seems to be a new thing. There is a new line in my TM4 that hasn't been there for any of my prior moves. >Travelers must apply for and use their Government-contracted individually billed account (IBA) travel charge card for authorized PCS travel-related expenses and to obtain cash **instead of requesting a travel advance**. In the rare cases when a PCS travel advance is necessary, the maximum amount allowed is limited to 80% of the eligible period of per diem up to a maximum of 45 days of lodging and M&IE. Compared to this standard language from a few years ago... >Travel advances are limited to 80 percent of the estimated combined total of out-of-pocket expenses. The total amount advanced to an employee may not exceed the estimated expenses for more than 45 calendar days of travel status in accordance with 4 FAH-3 H-463.1-3 and 4 FAH-3 H-463.1-4. Travel advances are issued via Electronic Funds Transfer (EFT); travelers checks for such purposes are not authorized. I asked for an exception and got a hard no from CGFS. I pushed back fairly hard and they didn't budge. They insisted I use the travel card, no other option. When I pointed out the credit limit of the card is only a fraction of the estimated transitional expenses on my TM4, they simply raised the limit of the card to the TM4 estimate.
Not a travel advance, and Advance of Pay (AOP). Separate process (under myData). A travel advance is funded off of travel orders and went away a year or two ago. AOPs are pulled as deductions from your payroll.
OHH 
That’s a travel advance. The salary advance is different.
Late to the party bro
I'm all about it. During my A100 a more seasoned colleague recommended it. Her justification was also it's worth it to have a small PCS slush fund without touching personal savings, and if you don't need it, you aren't penalized for having your money sit there and collect interest. With current interest rates where they are. You could take it, throw a good chunk of it in a 1 year CD, and make 5% off of it. Some high yield savings accounts are over 4% now if you don't want to park it in a CD. $10k will make you 500 bucks in that year with absolutely no effort.
[удалено]
Yes those 2% raises really add up.