What is a consequence of failing to repay an AER loan?

Failing to repay an Army Emergency Relief (AER) loan can lead to significant consequences that affect future access to AER assistance. One of the principal repercussions is that individuals may not be approved for any future AER assistance unless they have received prior approval. This policy is designed to encourage responsible borrowing and repayment practices among service members. The rationale is that AER funds are intended to provide aid in financial emergencies, and maintaining fiscal discipline is essential for the sustainability of such assistance programs.

While options regarding counseling or reporting to a commanding officer may seem relevant, they do not directly address the fundamental eligibility criteria for future assistance, which is primarily influenced by an applicant's repayment history. The focus on requiring prior approval highlights the program's emphasis on accountability and responsible financial management among its beneficiaries.