aerospacepilot

I have decided to pay for flight training as I go.

Obviously, due to the high cost of flight training, many people take out large loans for anywhere to $30,000 up to about $60,000 if they go to a very expensive school like ATP.

My question is what does the payment schedule look like for a loan like this. How many years until it is payed off? What is the typical monthly payment? What kind of interest rate do you get? If you took out a $50,000 loan, what is the total amount of money you end up paying when it is all paid off?

Thank you. I am very interested to hear your answer.

Cubdriver

You're smart to enter this industry without a loan debt if you can. You are not going to make much money for a while, and I know from my own training that pay as you go works fine and leaves you free to live and prosper without debt. The usual argument against the pay as you go method is, if you get your ratings fast you get the job fast and then you climb the seniority pole fast and start making those big big bucks. Don't buy this argument- airline flying is not lucrative until years into it, and even then its a gamble. Taking your flight training piece meal is more methodical, fun, instructive, and economical. I know there are other viewpoints on this topic, but none of them really convinces me. I have a big college loan and the interest alone is hundreds a month. This is wasted money as far I am concerned, and I am paying it off like a hot potato. To enter a job that pays $16k with $500/mo bank note is insane.

Slice

If you go to a reasonably priced school or FBO, it is cheaper to do your training all at once. First, prices aren't going to go down. Second, the more often you fly, the more info you retain and the less you have to be re-introduced to. As far as repayment, do a web search. I paid as I went but was still able to do it all at once. A good school I attended:
www.prairieairservice.com, MUCH less expensive than ATP and you won't be receiving your instruction from a low time MEI.

Cubdriver

I agree there is some value to doing things such that no cool-down factor is introduced. I am currently at risk to this. I took an office job and I hardly fly at all during the week. There is no question that the lack of absorption makes everything in flight training harder. I am due for taking the CFI written, and despite studying for months I am still not ready. Most of this is just keeping the pace alive, not learning anything new. On the other hand, if to keep the flame alive means incurring massive $50,000 debt, then I think one should not do it, because debt is very hard to remove.

FL600

I took out a student loan for my training at ATP. Yes, the payment will SUCK, but it's worth it to me. I started training "pay-as-you-go" and I averaged about 4 flights a month if I was lucky. Once I jumped in full steam I really retained a lot better, improved my skills faster and it's been a win/win for me.

I'm now at ATP, and it's been one of the BEST decisions I've ever made. The pace is intense but my skill has sharpened because of the lack of lag time.


MHM

LAfrequentflyer

Did someone say they enjoyed being a student at ATP?

Good for you...

-LAFF

Slice

LAFF, go to PAS, you'll thank me someday!

FL600

Yup yup - I heart ATP!

LeoSV

Well to answer your question, my Sallie Mae loan for ATP was for $57,000.00. Payments were to start 18 months after I started training, which would leave 4 months after training to find a CFI job and start paying back the $675.00/month note for the next 15 years. Yes, you added correctly. After interest, the loan was $121,500.00. It's not a regular school loan, it's a high interest loan. I stopped after my PPL. But just be careful with flight training loans, you feel good about your training now, but you really need to pay out of pocket NOW as much as you possibly can, because you will be living a hard life for a while. That isn't as big of a deal if you are single, but it's hell with a family.

Slice

LAFF? (sound of crickets chirping). How a regional FO is supposed to live with a loan payment like that is beyond me...Ramen for all my friends!