The held pay account is necessary to ensure funds are always available to cover charges. Charges for uniforms, textbooks, computer, personal service, i.e. barber, linen, etc., and membership fees are deducted from this account. When this loan is advanced, a debt is incurred and a repayment plan is established. The money to repay the loan is deducted from base pay. When the government loan is paid in full, the amount that was applied to repay that debt will now be added to the cadet's held pay account.
All cadets receive fixed monthly allowances to meet their personal needs.
Cadets actually receive this allowance when they are on vacation or on duty away from the Academy. Cadets who claim legal residence in a state that requires the payment of state income tax have monthly deductions for state income tax withholding based on their respective state tax withholding formulas. Taxes are included in the projected charges against a cadet's pay.