Falcon Loans: Better Than “Payday” Loans

Note: this isn’t AFMS-specific, but it does apply to all Airmen and might help some folks. In light of the many stories of Airmen (and other military personnel) becoming ensnared in high-interest “payday loans” and sometimes getting in over their heads financially, the Air Force Aid Society (AFAS) has stepped forward with a possible solution: the Falcon Loan Program. Understand that I’m advocate of the free market, and have in the past occasionally used “payday” lenders with no harmful repercussions…but there are lots of young Airmen who might not have the discipline or knowledge to deal with such lenders. So in that context, I’m glad to see the AFAS offering an alternative.

The bottom line: if you get in a financial jam - car breaks down, emergency travel, unexpected insurance bill, etc - you can get up to $500 from the AFAS Falcon Loan Program with NO INTEREST or fees. You have to pay it back via allotment over 3-10 months, but again, there is NO INTEREST or fees. Applying for a Falcon Loan looks pretty simple, too - you don’t need to fill out long budget worksheets, get your commander or first sergeant to approve the request, or wait for days to get an answer.

The Air Force Aid Society is pleased to announce its new Falcon Loan available to Air Force members beginning in March 2008. The Falcon Loan is a loan of $500 or less that can be used for emergency needs such as basic living expenses (rent, utilities, food), car repairs, emergency travel, or other approved needs. Applying for a Falcon Loan is as easy as 1-2-3:

1. Download the application off the AFAS website at www.afas.org
2. Get your ID card and current LES
3. Go to your Airman & Family Readiness Center (A&FRC)

The streamlined application process for a Falcon Loan requires no budget information, backup documentation, or First Sergeant/Commander approval. Minimal information required to process an allotment or Paymatic transaction (automatic withdrawal from bank account) and your signature is all that is needed to complete the application.

The AFAS is a great organization - Airmen taking care of their own. I’ve benefitted from AFAS - many years ago, they helped me in a pinch with some groceries and gas money - and during my AF career I always made sure to donate to AFAS during Combined Federal Campaign. If you’d like to contribute to the Air Force Aid Society, visit their site and give what you can.

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