Help For New Pilots
05-28-2009 | 06:41 AM
#5
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Joined: May 2006
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From: ATP, CFI etc.
educational financing
Financing and scholarships are not one and the same.
*Scholarships are handled by the financial aid departments of most aviation schools. For example, Embry Riddle has a financial aid department that dispenses scholarship monies to students who qualify. Since the money is limited, grades (merit) are used to decide who gets the money, but sometimes the money will be given to minorities regardless of their merit.
*On the other hand, financial aid also comes in the form of loans. There are two types.
1) Loans from the federal government are not-for-profit and also have low interest rates. The US Department of Education is the loan issuer. You can apply to these loans through a standard form called the FAFSA (Free Application for Federal Student Aid) at your school. It will take care of applying to all federal money there is to be had, it is a a cover-all application.
2) Loans from banks like Citibank and other large international banks are for-profit loans, however the interest rates are usually very low on educational loans from for-profit institutions. These loans are to be used when government loans and/or scholarships were not enough to cover the cost of school.
What you should do is try and get into a good school first. After you accomplish that, find out what they offer in terms of scholarships. After that you will know whether or not you need financial aid in the form of a FAFSA application. Generally, schools are willing to bend over backwards to keep students who have already been accepted to their program. They know money is a common problem. So, it is the most important thing to get accepted THEN figure out how to pay for it.
If you are trying to avoid formal coursework at a major school and obtain financing for use at a local FBO, your financing options are far more limited. You will have almost no scholarships to apply for, and you will not be able to get federal financial aid because only Part 141 schools are recognized by the federal government. If you find a Part 141 school and get accepted, they will be able to tell you where to get the money to pay for it. It will probably be in the form of a for-profit loan through a bank and the interest rate will not be very low. You should think very hard before taking out such a loan.
My final word of advice on this is, do not take out high interest loans for flight training from for-profit lenders. Anything over 5% is high interest for an educational loan. If you take out a loan with say, a high APR interest rate, the loan will become an albatross (nuisance) that haunts you for decades afterwards. Don't do it. Find another career, or self-finance through good old hard work. Many of us did this and it only takes a little more time.
*Scholarships are handled by the financial aid departments of most aviation schools. For example, Embry Riddle has a financial aid department that dispenses scholarship monies to students who qualify. Since the money is limited, grades (merit) are used to decide who gets the money, but sometimes the money will be given to minorities regardless of their merit.
*On the other hand, financial aid also comes in the form of loans. There are two types.
1) Loans from the federal government are not-for-profit and also have low interest rates. The US Department of Education is the loan issuer. You can apply to these loans through a standard form called the FAFSA (Free Application for Federal Student Aid) at your school. It will take care of applying to all federal money there is to be had, it is a a cover-all application.
2) Loans from banks like Citibank and other large international banks are for-profit loans, however the interest rates are usually very low on educational loans from for-profit institutions. These loans are to be used when government loans and/or scholarships were not enough to cover the cost of school.
What you should do is try and get into a good school first. After you accomplish that, find out what they offer in terms of scholarships. After that you will know whether or not you need financial aid in the form of a FAFSA application. Generally, schools are willing to bend over backwards to keep students who have already been accepted to their program. They know money is a common problem. So, it is the most important thing to get accepted THEN figure out how to pay for it.
If you are trying to avoid formal coursework at a major school and obtain financing for use at a local FBO, your financing options are far more limited. You will have almost no scholarships to apply for, and you will not be able to get federal financial aid because only Part 141 schools are recognized by the federal government. If you find a Part 141 school and get accepted, they will be able to tell you where to get the money to pay for it. It will probably be in the form of a for-profit loan through a bank and the interest rate will not be very low. You should think very hard before taking out such a loan.
My final word of advice on this is, do not take out high interest loans for flight training from for-profit lenders. Anything over 5% is high interest for an educational loan. If you take out a loan with say, a high APR interest rate, the loan will become an albatross (nuisance) that haunts you for decades afterwards. Don't do it. Find another career, or self-finance through good old hard work. Many of us did this and it only takes a little more time.
06-23-2009 | 02:51 PM
#6
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Joined: Jul 2007
Posts: 25
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If you would've saved 416 a month for the last six years you would have 30,000 dollars (and thats even assuming 0% intrest). That wouldve been enough to get all your ratings.
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