Who We Serve

Our Nation's Defenders  |  Serving the Wounded  |  Financial Issues Facing Military Families

The Pentagon Federal Credit Union Foundation is dedicated to assist the men and women and their immediate families in the Department of Defense and Homeland Security. This includes both uniform and non-uniform personnel. Our Military Heroes program provides support to those wounded in the war against terrorism. Given the large numbers of wounded and the long-term nature of their challenges, the government faces budget and logistical problems in meeting their needs. That’s where the Foundation steps in to help.

Military personnel and their families face financial stress due to relatively low pay, extended deployments and combat injuries. Payday lenders target those in the military because they have regular paychecks and must pay their bills or risk losing their security clearances. The Asset Recovery Kit (ARK) gives no-interest emergency cash loans and free professional counseling to help solve money problems.

Military families deserve their piece of the American Dream. They often cannot purchase a home the cornerstone of this dream because of the high cost of housing. Dream Makers is a grant program which assists first-time home buyers of modest means who are in the service of our country’s national security.

Serving the Wounded from the War on Terror

Who Are the Wounded?

The Pentagon Federal Credit Union Foundation provides support to those wounded in the war against terrorism and their families through our Military Heroes program.

• More than 29,000 men and women serving in Iraq and Afghanistan have been wounded. Given these large numbers and the long-term nature of their challenges, the government faces budget and logistical problems in meeting their needs.
• In World War II, the ratio of wounded to killed was 1:1. Advances in medical treatment, emergency evacuations, and medic training have increased that ratio to nearly eight wounded per combat death.
• To date, the military has evacuated more than 6,600 ill or injured soldiers to military medical centers; Walter Reed has treated more than 5,500 of these warriors. As many as 1,000 military personnel have been medically retired as a result of paralysis, burns, amputations, and psychiatric/mental disorders; over 400 patients at Walter Reed have suffered major limb loss. More than 200 have been treated for cancer.
• Blast injuries from suicide bombs and improvised explosive devices (IEDs) often result in a combination of penetrating, blunt, and burn injuries. There also is a high incidence of blinding injuries.
• Even though soldiers and marines wear protective armor, IEDs are causing blast injuries that extend under the armor and through vents.
• Most of the wounded are younger than 25 years of age.
• Amputee and burn patients can spend from 6 weeks to 18 months in treatment at military hospitals. Recovery from traumatic brain injury is slow and gains can be lost without continued treatment.
• About 54 percent of the wounded are from the National Guard and Reserves. Reservist families also often face a significant decline in household income when they deploy.
• The wounded face many financial issues. Military hospitals encourage the presence of family members to aid in recovery, but this can compound financial stresses for spouses or parents who leave their jobs to stay with their loved ones.
• It is impossible either because of budget constraints or from a logistical standpoint for the government to do everything that compassion demands. These are the unmet needs that the Foundation seeks to fill.

Financial Issues Facing Military Families

Predatory Lenders Target Military Families

From a recent Department of Defense study*

Predatory lending practices are prevalent among and target military personnel. They seek our young, financially inexperienced borrowers who have bank accounts and steady jobs, but also have little in saving, flawed credit or have hit their credit limit. They market to the military through their heavy presence around military installations, particularly near the front gates, and through the internet.

Military families are a market of choice for predatory lenders:

• 48% of enlisted Service members are less than 25 years old
• They typically have little experience in managing finances.
• They do not have a cushion of savings to help them through emergencies.
• Military policy states that Service members are to pay their debts.

Military families are heavy users of payday lenders:

• Active duty members are three times more likely than civilians to have taken out a payday loan.
• Estimates are that one in five active-duty Service members have used payday lenders.
• Predatory lending costs military families over $80 million in abusive fees per year.

Military families report financial problems:

• More than 15% reported being unable to make a monthly credit card payment.
• 13% had their utilities and services shut off.
• 3% fell behind in mortgage or rent payments.
• Many were harassed by lenders with threats to contact their commander. Some suffered loss of promotions, separation from the military and loss of security clearances.

Predatory lending undermines military readiness, harms the morale of troops and their families and adds to the cost of fielding a fighting force.

Military Families Face Challenges in Buying a Home

Military families are frequently assigned to high cost areas where leases are expensive and with limited or perhaps no base housing options. Many of them, from junior enlisted to senior officers, will only purchase their first home after they leave or retire from the service. And, few others are subject to more involuntary relocations during their careers.

With the financial stresses that military families face, many find it hard to save enough for down payments and closing costs for that first home.

Simply by virtue of their service to our country, the American Dream of homeownership is extremely hard to achieve, extremely risky, or simply out of reach.

*Information excerpted from the Report on Predatory Lending Practices Directed at Members of the Armed Forces and Their Dependents, Department of Defense, August 2006