UAL CEO Says 100 RJ's Grounded, no Pilots
#11
Banned
Joined APC: Jun 2021
Posts: 794
But until then, nothing is guaranteed, and enjoy your accrued interest on top of the $100,000 loan, which ends up being a monthly payment around the same rate you pay for rent.
Thankfully I took out private loans (2-3% interest) and was able to get some assistance in scholarships, which allowed me to have my loans paid off just past my first year in the left seat as a regional captain. But for most that’s not the case, and those Federal loans are killer.
Scott’s solution to fix a shortage was to encourage more individuals to take on 6 figure debt. Good luck 👍. And once again, I have seriously question his intelligence.
Last edited by KirillTheThrill; 12-22-2021 at 03:25 PM.
#12
Gets Weekends Off
Joined APC: May 2017
Posts: 1,792
Right more assistance in loans will totally fix the shortage. No biggy, just take out $100,000 in federal student loans at a 7-8% interest rate. Then you can go work at a reduced pay rate at one of the regional shops until one day a mainline shop maybe gives you a shot.
But until then, nothing is guaranteed, and enjoy your accrued interest on top of the $100,000 loan, which ends up being a monthly payment around the same rate you pay for rent.
Thankfully I took out private loans (2-3% interest) and was able to get some assistance in scholarships, which allowed me to have my loans paid off just past my first year in the left seat as a regional captain. But for most that’s not the case, and those Federal loans are killer.
Scott’s solution to fix a shortage was to encourage more individuals to take on 6 figure debt. Good luck 👍. And once again, I have seriously question his intelligence.
But until then, nothing is guaranteed, and enjoy your accrued interest on top of the $100,000 loan, which ends up being a monthly payment around the same rate you pay for rent.
Thankfully I took out private loans (2-3% interest) and was able to get some assistance in scholarships, which allowed me to have my loans paid off just past my first year in the left seat as a regional captain. But for most that’s not the case, and those Federal loans are killer.
Scott’s solution to fix a shortage was to encourage more individuals to take on 6 figure debt. Good luck 👍. And once again, I have seriously question his intelligence.
- Federal loans qualify for hardship forbearance by law, private loans it's by program and at the discretion of the lender.
- Federal loans can be consolidated through the federal consolidation mechanism, private must be through another private loan and lender.
- Federal loans qualify for income based repayment and graduated payment schedules. Private loans do not.
- Federal loans can be forgiven after 25 years on certain payment plans, private loans cannot.
I went years with variable rate private loans because my credit wasn't good enough to get a refi amount that would cover them all, so I was variable between 8%-15% on them. I finally refinanced the one I had left during covid and it went from 12% to 5%... My federals were fixed the whole time at 7%.
#13
Banned
Joined APC: Jun 2021
Posts: 794
Whoaa hold on. Federal loans are not nearly as bad as private loans depending on your decade. Those who were in college from 2000-2010 likely had variable rate private loans because those were the only things offered. At least federal loans are generally fixed.
I went years with variable rate private loans because my credit wasn't good enough to get a refi amount that would cover them all, so I was variable between 8%-15% on them. I finally refinanced the one I had left during covid and it went from 12% to 5%... My federals were fixed the whole time at 7%.
- Federal loans qualify for hardship forbearance by law, private loans it's by program and at the discretion of the lender.
- Federal loans can be consolidated through the federal consolidation mechanism, private must be through another private loan and lender.
- Federal loans qualify for income based repayment and graduated payment schedules. Private loans do not.
- Federal loans can be forgiven after 25 years on certain payment plans, private loans cannot.
I went years with variable rate private loans because my credit wasn't good enough to get a refi amount that would cover them all, so I was variable between 8%-15% on them. I finally refinanced the one I had left during covid and it went from 12% to 5%... My federals were fixed the whole time at 7%.
#14
Gets Weekends Off
Joined APC: Nov 2016
Posts: 896
Kirby is posturing to have the government throw money at the problem so he doesn't have to. We don't need more government help. The jobs need to pay enough to make it worthwhile to spend the money on the education. Get rid of the FFD model and bring all flying in house. No more cheap contractors.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
#15
Gets Weekends Off
Joined APC: Jul 2014
Position: B747 FO
Posts: 610
Kirby is posturing to have the government throw money at the problem so he doesn't have to. We don't need more government help. The jobs need to pay enough to make it worthwhile to spend the money on the education. Get rid of the FFD model and bring all flying in house. No more cheap contractors.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
^ this right here
#16
Gets Weekends Off
Joined APC: Dec 2011
Position: A320 FO
Posts: 846
Kirby is posturing to have the government throw money at the problem so he doesn't have to. We don't need more government help. The jobs need to pay enough to make it worthwhile to spend the money on the education. Get rid of the FFD model and bring all flying in house. No more cheap contractors.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
While we're at it, let's address the cost of learning to fly. There's no need to waste money on a university degree and a fancy airplane. Get your licenses and ratings as cheaply as possible and get your job.
Do I personally love government meddling in the economy and the unintended consequences it creates? No. But Kirby is right to lobby for what other industries get.
To the point a few posts ago: There are two shortages right now. One is the current shortage of pilots willing to work for the wages offered. The other is the future shortage if flight school enrollments stay where they are.
Kirby is more concerned with the later since he can stripe mine the regionals to solve the former. He appears quite prepared to do that and to allow UAX to shrink.
It will be very interesting to see when the market finally finds some equilibrium.
#17
Gets Weekends Off
Joined APC: May 2017
Posts: 1,792
I went through school from 2011-2015. I had the complete opposite scenario. Private loans variable were 3.15% fixed was 5%. You can switch your loans over to fixed if the variable rate increases past the fixed. So the fixed rate is a suckers rate. Federal loans were 7-8%.
#18
Banned
Joined APC: Jun 2021
Posts: 794
#19
You aren't wrong but just about every other professional career gets subsidies of one sort of another. Pilots without military benefits are basically on their own.
Do I personally love government meddling in the economy and the unintended consequences it creates? No. But Kirby is right to lobby for what other industries get.
To the point a few posts ago: There are two shortages right now. One is the current shortage of pilots willing to work for the wages offered. The other is the future shortage if flight school enrollments stay where they are.
Kirby is more concerned with the later since he can stripe mine the regionals to solve the former. He appears quite prepared to do that and to allow UAX to shrink.
It will be very interesting to see when the market finally finds some equilibrium.
Do I personally love government meddling in the economy and the unintended consequences it creates? No. But Kirby is right to lobby for what other industries get.
To the point a few posts ago: There are two shortages right now. One is the current shortage of pilots willing to work for the wages offered. The other is the future shortage if flight school enrollments stay where they are.
Kirby is more concerned with the later since he can stripe mine the regionals to solve the former. He appears quite prepared to do that and to allow UAX to shrink.
It will be very interesting to see when the market finally finds some equilibrium.
Fair to other sectors? No. But bartenders, baristas and small business are a lot easier and quicker to recover than airlines.
#20
Gets Weekends Off
Joined APC: Sep 2016
Posts: 1,948
IMO the covid subsidies were a rare example of where the .gov SHOULD meddle in the economy... the long-term economic consequences of allowing the airlines to liquidate and/or shrink by 50% would have been frankly catastrophic. It would have taken several years to rebuild capacity and even then the gov would probably have had to help.
Fair to other sectors? No. But bartenders, baristas and small business are a lot easier and quicker to recover than airlines.
Fair to other sectors? No. But bartenders, baristas and small business are a lot easier and quicker to recover than airlines.
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04-22-2012 10:33 AM