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Whether you’re going across the country or overseas with the U.S. military, a Permanent Change of Station (PCS) move can come with a long list of expenses. While the military pays for some expenses upfront, you’ll need to pay for others yourself before you receive reimbursement.
Understanding how to pay for a PCS move can help you avoid financial stress during the transition. Some options include savings, military assistance programs, and financing with a PCS loan. Here’s a closer look at PCS move costs and ways to cover them.
Key Points
• A Permanent Change of Station (PCS) move requires military members to pay many relocation costs out-of-pocket before receiving reimbursement.
• Common expenses include moving costs and temporary housing expenses.
• The primary ways to cover these upfront expenses are drawing on personal savings or utilizing military assistance programs, which sometimes offer grants or low-interest loans.
• Personal loans are a flexible financing option, providing a lump sum with predictable monthly payments and fixed interest rates for borrowers with solid credit.
• To prepare, military families should estimate expected costs, understand their specific reimbursement benefits, track all expenses, and work to build their savings.
What Is a PCS Move?
A PCS move happens when a member of the military receives orders to go to a new duty station. They may be CONUS moves, meaning you move to another state within the continental U.S., or OCONUS moves, which involve going overseas.
The military provides some upfront benefits for covering relocation costs, but you may have to pay for others yourself before getting reimbursed. You may also incur extra expenses that don’t qualify for reimbursement.
Some costs can include travel, temporary housing, and transporting your personal belongings.
Common Costs Associated With PCS Moves
Even with support from the military, PCS move costs can add up. Here are some expenses you may have to prepare for.
Moving and Transportation Costs
Some military relocation expenses may include plane tickets, fuel costs, pet transport, storage fees, and other costs that come with moving. The military will pay upfront for movement of household goods and provide a dislocation allowance, but you’ll have to pay for any overweight charges.
Temporary Housing and Living Expenses
You may also need to pay for temporary housing while you wait for permanent housing to become available. Some costs could include hotels, meals, laundry expenses, childcare, and other day-to-day living expenses. The military may reimburse you for temporary lodging, but you could still need cash upfront to pay for it.
Out-of-Pocket Costs and Delays
According to the Military Family Advisory Network, military families often face over $5,000 in unreimbursed out-of-pocket costs for a PCS move. Some of these costs could include home cleaning services, meals that exceed the per diem allowance, extra storage costs, or moving additional vehicles. You may also face unexpected costs if you experience travel delays.
Financial Options to Cover PCS Expenses
Even if the military will ultimately cover your PCS move costs, you may need significant funding upfront to cover expenses. Here are some financial options you can use to cover average moving costs.
Savings and Reimbursements
If you have savings stashed away, you can draw on those to manage moving costs until your reimbursements arrive. “If you have savings not currently earmarked for a specific financial goal, take some time to think about what goal you’d like to apply it to. A great first saving goal is to have three to six months of living expenses in an emergency fund. After that, it might be good to turn your attention toward retirement savings and investing,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.
The military offers several reimbursements for common moving expenses, including:
• Dislocation Allowance (DLA)
• Temporary Lodging Expense (TLE) or Temporary Lodging Allowance (TLA)
• Mileage reimbursements
• Per diem payments
• Shipment and storage coverage
Processing times for PCS move reimbursements can vary. That’s why it’s so useful to have savings in this situation, which you can replenish once your military benefits come through.
Military Assistance Programs
There are some programs out there that can provide assistance for relocation costs. Some offer grants or low-interest loans for eligible families that are facing financial hardship. The military may also provide educational resources like financial counseling. Some organizations worth exploring include Army Emergency Relief (AER), the Navy-Marine Corps Relief Society, the Air & Space Forces Aid Society, and Coast Guard Mutual Assistance.
Personal Loans for Relocation
While there aren’t specifically relocation loans military service members can use, the funds from a personal loan or emergency loan could help you fill the financial gap associated with a PCS move. Personal loans are unsecured loans that you can use toward almost any expense, including hotel stays, transportation, and other moving costs.
Relocation loans provide a lump sum upfront that you pay back in monthly installments over a certain number of years, often one to seven. They generally have a fixed interest rate, so you can estimate your borrowing costs from the beginning with a personal loan calculator.
Your interest rate will largely be based on your financial profile, especially your credit score, income, and debt-to-income ratio. A strong credit score can help you qualify for personal loans with better interest rates and low (or no) fees.
Pros and Cons of Using a Personal Loan for PCS
It’s worth considering both the pros and cons before taking out a relocation loan for a military move.
Pros
• Flexible financing: Personal loans are versatile — you can use them for almost anything, including your various PCS move costs.
• Fast funding: Some lenders can approve your PCS loan the same day you apply.
• Predictable payments: Most personal loans require the same payment month after month.
• No collateral required: Personal loans tend to be unsecured loans, so you don’t have to put up any personal assets as collateral when you borrow.
• May offer competitive rates: Interest rates start around 6% or 7% for strong-credit borrowers, much lower than the average rate of 21% on credit cards.
Cons
• Requires a solid credit score and income: Since personal loans are unsecured, approval is largely based on your finances, especially your credit score and income.
• Rates may be high if you have weak credit: Rates may go as high as 36%.
• Some loans charge fees: If you have weak credit, you may also be subject to origination fees, which may cost 1% to 10% or so of your loan amount.
• May strain your budget: It may take years to pay off a personal loan, and the monthly payments could be burdensome if you’re on a tight budget.
How to Plan and Budget for a PCS Move
Planning and budgeting can help minimize your stress during a PCS move. Here are a few steps you can take to get ready:
• Estimate your moving costs: Start by making a list of all the expenses you’re likely to have, including housing, meals, travel, and storage. Check out costs in your new duty station as well to see if housing, childcare, or other essentials will increase.
• Understand your reimbursement benefits: Find out what’s covered and what’s not covered ahead of time so you can plan accordingly and avoid surprises.
• Track all your expenses: Keep all your receipts and records so you have everything ready to submit for reimbursement.
• Build your savings: Work on setting aside savings so you have money on hand to cover PCS move costs.
• Compare personal loan options: If you need additional funding, explore multiple borrowing options to find the most affordable approach. That includes comparing personal loan offers from multiple lenders to find your best rate and terms.
How SoFi Can Help With Relocation Costs
SoFi offers personal loans from $5,000 to $100,000 with competitive rates. There are no-fee options. You can easily apply online and receive your funds as soon as the same day you sign your loan agreement.
Repayment terms range from two to seven years; you can choose the term that works best for your budget. It’s also easy to check your rates online through prequalification, a quick process that won’t impact your credit score.
The Takeaway
While a PCS move can be an exciting next step in your military career, it may also come with upfront costs. From airfare to temporary housing to transporting your personal belongings, you may be responsible for paying for the move before later receiving reimbursement.
Drawing on savings can help, but if that’s not available to you, a personal loan could be a useful option. Make sure to compare personal loans to find a competitive rate and repayment term that fits your budget.
By planning for your PCS move expenses in advance, you can find a financing strategy that helps with the transition while you settle into your new duty station.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
What expenses are covered in a PCS move?
The military does provide help to those exploring how to pay for a PCS move. There’s a Monetary Allowance in Lieu of Transportation (MALT), a Dislocation Allowance (DLA), a Temporary Lodging Expense (TLE), and a per diem for meals and lodging.
How long does it take to get reimbursed for PCS expenses?
It typically takes two to four weeks to get reimbursed for PCS expenses.
Can you take out a loan for a PCS move?
Yes, you might take out a PCS loan (a personal loan) to cover military relocation expenses such as travel, temporary housing, and other moving costs.
Are personal loans a good option for relocation?
Personal loans can be a good option for relocation, since they’re a flexible form of financing that you can put toward almost any expense. They offer fixed interest rates, predictable payments, and no collateral requirements. Make sure to carefully review interest rates, fees, and monthly payments before you take on debt.
What financial help is available for military moves?
The military provides financial help for military moves and reimburses many of the expenses associated with a PCS move. Some additional resources include local Relocation Assistance Programs and Homes for Heroes.
photocredit: iStock/SeventyFour
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