FiCEP Serving Specialized Populations

Question 1

Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on debts incurred BEFORE a servicemember goes on active duty?

Accepted Answer

6% per year while on active duty

Answer

The SCRA caps interest rates at 6% per year on most debts — including credit cards, auto loans, and mortgages — that were incurred before active duty service. To receive this benefit, the servicemember must send a written request and a copy of their deployment orders to each creditor. The cap applies for the duration of active duty. This can result in significant interest savings and must be requested; it is not automatic.

Question 2

Which retirement savings plan is specifically available to federal civilian employees and uniformed military members?

Accepted Answer

Thrift Savings Plan (TSP)

Answer

The Thrift Savings Plan (TSP) is a defined-contribution retirement plan for federal employees and military members, similar in structure to a 401(k). It is notable for having extremely low administrative fees and offering a choice of investment funds including lifecycle funds. Under the Blended Retirement System (BRS), military members can also receive matching contributions to their TSP.

Question 3

Basic Allowance for Housing (BAH) is a military benefit that is best described as:

Accepted Answer

A non-taxable monthly allowance based on duty station, pay grade, and dependency status for servicemembers not in government housing

Answer

BAH is provided to servicemembers who do not live in government-provided housing, and its amount varies based on duty station location, pay grade (rank), and whether the servicemember has dependents. Crucially, BAH is not subject to federal income tax, which significantly increases its effective value. Counselors should account for BAH's tax-free status when calculating a military client's effective income.

Question 4

When a financial counselor begins working with an individual recently released from incarceration, which financial need is typically the most urgent foundational priority?

Accepted Answer

Establishing access to basic banking and securing government-issued financial identity documents

Answer

Justice-involved individuals reentering society often lack foundational financial access: they may have no government-issued ID, no Social Security card, no bank account, and a damaged or non-existent credit history. Securing these basics — state-issued ID, SSN card, and a bank account (often a second-chance checking account) — must come before any higher-level financial planning can occur. Without these, participation in the formal economy is nearly impossible.

Question 5

VA disability compensation paid to veterans with service-connected disabilities is:

Accepted Answer

Non-taxable and generally excluded from income calculations for means-tested benefit programs

Answer

VA disability compensation is not subject to federal income tax and generally does not count as income when determining eligibility for means-tested programs such as Medicaid or SNAP. Benefits are available at any disability rating from 0% to 100%, with payment amounts scaling by rating percentage and number of dependents. Financial counselors should ensure veteran clients understand this when calculating total household income and benefit eligibility.

FiCEP - Financial Counseling Certification Program Practice Test

FiCEP - Financial Counseling Certification Program Practice Test

FiCEP Serving Specialized Populations