Student Loans
04-07-2007, 05:04 AM
#2
Chief Jeppesen Updater
Joined APC: Oct 2005
Position: Executive Transport Driver
Posts: 3,080
MP,
I don't know who you have your loans through, but I suggest that at least at first you try to defer them to an interest only status while you flight instruct or enter the regionals. Most companies will allow you to do this if you make below a particular income level (Which as a CFI you probably will). You might pay a bit more over the long run, but at least then you won't be ****ing off your loan company when you can't make payment since you're stretched so thing already.
Once you do start making some money and can afford to pay on them, evaluate your loans. Some might be advantageous to consolidate- others may not.
A lot depends on how much you can pay, and the interest rates that are available. I did not consolidate my loans (pay about $425/month on all of them total), but my wife did hers. As a result, I have a higher monthly payment than she does, but both interest rates are similar and I'll have my loans paid off about 7 years before she does.
Take a look around the internet for articles about consolidation and consider things like interest rates, how many different loans you have, the types of loans (subsidized stafford, unsubsidized stafford, commercial, etc), and how much you can pay, then make the decision as to what works for you personally.
Whatever you do DON'T rely on credit cards to live right out of school. A lot of new FOs (including yours truly) rack up a huge amount of credit card debt to survive and their finances end up imploding and affecting their credit rating (including yours truly). I've struggled for 7 years to fix the one year of spending and just now am I starting to recover.
I don't know who you have your loans through, but I suggest that at least at first you try to defer them to an interest only status while you flight instruct or enter the regionals. Most companies will allow you to do this if you make below a particular income level (Which as a CFI you probably will). You might pay a bit more over the long run, but at least then you won't be ****ing off your loan company when you can't make payment since you're stretched so thing already.
Once you do start making some money and can afford to pay on them, evaluate your loans. Some might be advantageous to consolidate- others may not.
A lot depends on how much you can pay, and the interest rates that are available. I did not consolidate my loans (pay about $425/month on all of them total), but my wife did hers. As a result, I have a higher monthly payment than she does, but both interest rates are similar and I'll have my loans paid off about 7 years before she does.
Take a look around the internet for articles about consolidation and consider things like interest rates, how many different loans you have, the types of loans (subsidized stafford, unsubsidized stafford, commercial, etc), and how much you can pay, then make the decision as to what works for you personally.
Whatever you do DON'T rely on credit cards to live right out of school. A lot of new FOs (including yours truly) rack up a huge amount of credit card debt to survive and their finances end up imploding and affecting their credit rating (including yours truly). I've struggled for 7 years to fix the one year of spending and just now am I starting to recover.
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