Pilot Financing
#12
Gets Weekends Off
Joined APC: Nov 2011
Position: Admiral
Posts: 726
I never said I was in favor of getting loans, I just answered his question. The whole airline industry looks better for the next decade as far as hiring than it has in the last decade, I never said anyone was a shining star or a guarantee. Anyone in this industry that has those type of notions won't be here very long anyway.
I myself am debt free as a 22 year old college grad and I have most of my flight training finances through MEI in my bank account so no loans. I made this work for me but some people aren't as lucky and what I was saying is there are other risk mitigated ways as well including getting loans (WHAT RATE ARE YOU GETTING AND HOW MUCH) because I had an approved fixed rate of 3.8% on 25,000 when I thought I might need it. That's easily payable on a $25,000 instructor salary etc.
I myself am debt free as a 22 year old college grad and I have most of my flight training finances through MEI in my bank account so no loans. I made this work for me but some people aren't as lucky and what I was saying is there are other risk mitigated ways as well including getting loans (WHAT RATE ARE YOU GETTING AND HOW MUCH) because I had an approved fixed rate of 3.8% on 25,000 when I thought I might need it. That's easily payable on a $25,000 instructor salary etc.
#13
A decade ago the pinnacle of MANDATORY RETIREMENTS weren't right around the corner.... I never said there was a pilot shortage as your slighlty referring to in how you responded to that, however I believe there is a shortage of the "Willing" I think. So the fact that hiring IS PICKING UP.. More jets being produced, more pilots retiring, more people traveling, MORE PILOT HIRING...
#14
A decade ago the pinnacle of MANDATORY RETIREMENTS weren't right around the corner.... I never said there was a pilot shortage as your slighlty referring to in how you responded to that, however I believe there is a shortage of the "Willing" I think. So the fact that hiring IS PICKING UP.. More jets being produced, more pilots retiring, more people traveling, MORE PILOT HIRING...
#15
Got news for you, they didn't hire all the current pilots in one year. Yes, there was a slight hiccup with a 5 year "postponement", but people are retiring all the time. If anything, you should learn from the age 65 rule: So many pilots were desperate to come out with something after their airline previously folded (TWA, etc) and they were left with nothing so they were forced to keep flying and on the job well into their late years. This was a windfall to the pilots who had to switch airlines or had to go through massive downsizing/cuts. Look past how great it is going to be for you that hiring is going to be trickling and realize that there are much more important things than getting pilot ratings super fast, like saving up money for retirement and having financial flexibility. More jets being produced? Well, sure, but have you seen how many are abandoned in the desert? Even 757s now. Are more jets being produced to expand flying at the major level, or to replace old aircraft and cram more people into a confined space? I'm not trying to be all doom and gloom intentionally, but the idea that "the best time" is right around the corner has been the greatest myth perpetuated in the training and recruitment environments.
#16
Line Holder
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Joined APC: Sep 2014
Position: Crj FO
Posts: 31
OK, so I can get financing through Sallie Mae this way? That was my question thank you.
As far as is this a good idea, I do not see why not. I currently have no debt, a ppl and close to 200 hours. My college is already fully paid for, so I won't spend anything on that. I will pay for as much as I can myself, but I don't think I'll be able to save up enough before I turn 22 or 23. The full cost a training might end up being something like 22k since I already have a lot of time built.
The way I see it. There doesn't seem to really be a way around around the costs of training. It's cheaper at a 61 school sure, but it also takes longer and often requires repetition if you are paying as you're going. So, in the end what am I really saving.
I only make about 13k a year now, why wouldn't I just invest 25k now and get a cfi job making 22k - 28k? I would end up making more in the long run wouldn't I? Not to mention what 1 year or 2 of seniority can mean, Sorry I'm just not seeing how this is a bad deal. I'm young everything is gonna suck at first, but of all the schools I've visited this one sucks the least.
As far as is this a good idea, I do not see why not. I currently have no debt, a ppl and close to 200 hours. My college is already fully paid for, so I won't spend anything on that. I will pay for as much as I can myself, but I don't think I'll be able to save up enough before I turn 22 or 23. The full cost a training might end up being something like 22k since I already have a lot of time built.
The way I see it. There doesn't seem to really be a way around around the costs of training. It's cheaper at a 61 school sure, but it also takes longer and often requires repetition if you are paying as you're going. So, in the end what am I really saving.
I only make about 13k a year now, why wouldn't I just invest 25k now and get a cfi job making 22k - 28k? I would end up making more in the long run wouldn't I? Not to mention what 1 year or 2 of seniority can mean, Sorry I'm just not seeing how this is a bad deal. I'm young everything is gonna suck at first, but of all the schools I've visited this one sucks the least.
#17
OK, so I can get financing through Sallie Mae this way? That was my question thank you.
As far as is this a good idea, I do not see why not. I currently have no debt, a ppl and close to 200 hours. My college is already fully paid for, so I won't spend anything on that. I will pay for as much as I can myself, but I don't think I'll be able to save up enough before I turn 22 or 23. The full cost a training might end up being something like 22k since I already have a lot of time built.
The way I see it. There doesn't seem to really be a way around around the costs of training. It's cheaper at a 61 school sure, but it also takes longer and often requires repetition if you are paying as you're going. So, in the end what am I really saving.
I only make about 13k a year now, why wouldn't I just invest 25k now and get a cfi job making 22k - 28k? I would end up making more in the long run wouldn't I? Not to mention what 1 year or 2 of seniority can mean, Sorry I'm just not seeing how this is a bad deal. I'm young everything is gonna suck at first, but of all the schools I've visited this one sucks the least.
As far as is this a good idea, I do not see why not. I currently have no debt, a ppl and close to 200 hours. My college is already fully paid for, so I won't spend anything on that. I will pay for as much as I can myself, but I don't think I'll be able to save up enough before I turn 22 or 23. The full cost a training might end up being something like 22k since I already have a lot of time built.
The way I see it. There doesn't seem to really be a way around around the costs of training. It's cheaper at a 61 school sure, but it also takes longer and often requires repetition if you are paying as you're going. So, in the end what am I really saving.
I only make about 13k a year now, why wouldn't I just invest 25k now and get a cfi job making 22k - 28k? I would end up making more in the long run wouldn't I? Not to mention what 1 year or 2 of seniority can mean, Sorry I'm just not seeing how this is a bad deal. I'm young everything is gonna suck at first, but of all the schools I've visited this one sucks the least.
#18
Line Holder
Joined APC: Jun 2014
Posts: 44
Second, most of the cost of the commercial certificate is building time. You are well on your way at 200 hours to the CASEL cert. Start by getting the instrument rating and your time will be close to Commercial. Then get CASEL/CAMEL and you are immediately employable with just 2/3 ratings that you have had to pay for. Look around for a job at that point, if after a set amount of time you don't find a flying gig then pursue CFI...
This way you are not "all in" financially when you could have saved some cash. I instructed for 6 months and then got hired at a 135 place. My CFI is not even being used now and I can't get a refund.
#20
Gets Weekends Off
Joined APC: Feb 2014
Posts: 211
I would say tread carefully man. While loans can be survivable and sometimes a good idea, you have to watch your step.
When I wanted to get my PPL I was going to get a loan because I wanted to do it all in one shot instead of spread out over a longer period of time. I went to a lot of misc. lenders and when you are young and don't have much credit history it can be tough. Pilot Finance tried to hook me up with a loan at a laughable interest rate. It was 8.5k for the training and they were going to charge me 12.5k total! They're reasoning was if you made all payments on time you would get a 3% rebate on the interest, but even still, it's crazy.
Bottom-line don't settle for any high interest loans just because you are determined to get the money. Once you sign for it you are in.
When I wanted to get my PPL I was going to get a loan because I wanted to do it all in one shot instead of spread out over a longer period of time. I went to a lot of misc. lenders and when you are young and don't have much credit history it can be tough. Pilot Finance tried to hook me up with a loan at a laughable interest rate. It was 8.5k for the training and they were going to charge me 12.5k total! They're reasoning was if you made all payments on time you would get a 3% rebate on the interest, but even still, it's crazy.
Bottom-line don't settle for any high interest loans just because you are determined to get the money. Once you sign for it you are in.
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