Help! loan payment!
 

Hello averyone! I was just wondering how hard is it to pay back your loan during the first year in the regionals? I'm single, no kids(I guess thats good) with a 60k loan. I only have 5 months to start paying for it. How did you did it?

Any advise would be good, Thanks

Where did you go that you needed a 60k loan? Did you get a degree as well into that loan, or is that just flight training?

I got all my rating going to ATP and i don't have any college degrees, but i'm thinking of getting it later on.

$5,000 a month for 12 months not including interest will do it.

Here is the strategy I would employ if I were in your shoes. This strategy is based on the following estimated information. I am going to estimate you were charged $4k to get that $60k.

Based on the info below, hypothetically, you would make about $1500 a month. Your loan payment would $612 a month. That leaves $888. I would set a budget of what you have to have to live based on $888 and anything you have left you put as an extra payment on the loan.

Then when you get a raise, continue to live like you still only make $888 a month and put the extra amount against the loan.

Hope this helps.

Loan Balance: $64,000.00
Loan Interest Rate: 8.00%
Loan Term: 15 years
Minimum Payment: $50.00

Monthly Loan Payment: $611.62
Number of Payments: 180

Cumulative Payments: $110,090.68
Total Interest Paid: $46,090.68
----------------------------
Here is an estimate of what you would make a month (1 paycheck a month, in Ohio for state income tax) based on $20,000 - $24k base salary with $4k per diem)
Gross Pay Per Pay Period: $2,000.00
Taxable Income Per Pay Period: $2,000.00
FICA (Social Security and Medicare): ($153.00)
Federal Income Tax: ($237.50)
State Income Tax: ($96.90)
Your Net Pay Amount: $1,512.60

Is it a student loan type deal or what? You could always enroll in distance learning. Just enough credits so your loan will be deferred out more, while you actually gain education in the process.

Oh My !!
 

I highly advise that you get a real job and pay all that back before you begin a career as a regional pilot. In addition I would read the "Loans" thread in the Money column.

SkyHigh

You just finished your training and you are already assuming that you are going to a regional? How much time do you have?wtf. I agree with skyhigh; go to a real job to get rid of your debt first and DO NOT use your credit cards....cut them up. If you don't have the money for something....don't buy it!!!! wow, what a concept

If totally depends on a few factors how much $$ you'll end up making at a regional.

Honestly, I would base ALL of your figures off assuming you are on reserve, and don't ever fly. Min guarantee x pay rate = gross pay. Subtract a few bucks (around $65/month or so) for medical/dental insurance, uniform deduction $50/month), etc and taxes, on my gross salary of $1785 my take home was around $1,300/month. This was at regional that started us at $24/hr. Most are around the $19-$21/hr range, so they'll be a little less. One thing skyhawg didn't mention was that there are a few other deductions to go out of your pay, so keep those in mind.

Skyhawg had an excellent post. To reiterate, I would call your loan company and ask exactly what the monthly payments will be. Some people have the option of paying "interest only", I would NOT recommend that unless you absolutely could not cover the payment, however it is an option of last resort.

If his figure of $610/month is close (seems to be, I pay around $100/$10000 loaned) structure your budget to live on that $$ left over. We're talking around $600-$700/month here in TOTAL living expenses. Can it be done? Yes; hopefully you don't have a car payment, don't mind living with several roommates, don't mind eating pasta noddles EVERY DAY, and don't mind living where you are based, because you will want to live in domicile so you can pick up any open time possible. The other option is to live with your parents, but then you'll have to buy a crashpad anyway at domcilie so it would be a wash.

Keep in mind, unless you work for a sh!tty company, you will get 10-12 days off a month even on reserve. Use those to your advantage and get a part time job. You will know your schedule a month in advance so that should help your employer schedule your hours.

Once I got off reserve, my monthly paychecks ended up $1,600 net with another $400 in tax free per diem on first year pay. I do not purchase food on overnights, I pack my own cooler that I bring with me, so I keep that per diem. Other people spend it. If I was in your shoes, I would be packing food as well.

PS Sounds like you did ATP's pay for flight time program? I thought their basic course was around $40k, and you spent $60k. Hmmm, I guess working as a CFI for a few months just wasn't worth it, huh? LOL.

at ATP it's now $9k for the PPL and $44k for the ACPP program. Then another $5-7k for testing and checkrides and some people use it to cover every expenses. Then another $4k for the loan origination fee. Highway robbery!

From what I heard you can pretty much count on teaching at ATP for 6 months. That's $1000 (gross) - $200 for housing (their apartments) - food - gas - misc expenses. That's asuming you stay lean and hopefully carpool to work. Then you will make bonuses. I would put all of what you have left and bonus in the bank and not touch it or even better send it to the loan company. Your loan is accrueing interest already! That way when you get Regional job your amount will be that much less. At the end of the calendar year or last month you last work at ATP, hold most of the check so you can pay taxes.

Hope that helps. If all else fails call the parentals.

Remember that you will be getting per diem. That's counts as income too.