Originally Posted by
CBreezy
The rate of a loan should have nothing to do with the cost of training. The flight schools don't make money on the interest.
What?
Everything in life is indexed to interest rates. It's the cost of useing your furture money.
When mortgage rates go up home equity dips. When they go down equity pops.
Boeing charges more for their birds to foreign countrys because the US export bank subsidizes the interest to those country's.
College tutition has skyrocketed in direct proportion to Stanford loans being available to everyone.
Car manufactures that promote 0% charge more at the sale.
What is does is increase the available customer base and schools will definitely take advantage.
If your a CFI making $25 per hour and have students lined up 6 months out you will start charging $35 or $45.