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.

Thanks for taking your time to post. I wanted to ask if there is any other choice other than the regional airlines? My time is in the 1000s.

You can write your own ticket with that amount of time. Just pick a place.

Don't forget that you only have until Friday to consolidate your loans and avoid another 2% on the duration of them.

look outside the box
 

If you want to buld quality time, look outside the box. You need another 200 hours for the magical 1200 needed for 135 IFR. Good way to try to build time (and character) before the regionals. They don't pay a whole lot. I flew cloud seeding for 3 1/2 years. It was very seasonal, but it was all quality multi-time versus the usual CFI job. There's also air ambulance, though you would need to probably start in the right seat there... i had a buddy that did that and he said that the hardest part was when he would have to fly little kids in the back that needed the air lift. Hope you have a strong stomach.

The beautiful thing right now with all the regionals desperate to get the SJS kids into the right seat, is that its leaving a lot of these more creative lines of work that need to be filled. Just open your eyes, use your contacts and find something you will enjoy doing. There's too many people (especially on these message boards) that went through flight training, instructed for a little while, and went straight to the airlines, and are now b**ching about how flying is not what they expected it would be. Here's a hint. THE REGIONALS SUCK UNTIL YOU GET BE VERY SENIOR! Find a job flying somewhere you want to that will allow you to enjoy what you do while paying back some of your loan.

I can't stress it enough. Go find a fun flying job for a year or two, work on paying off your loans, then go to the regionals. I know i'll get crap for saying to pass up the seniority, but you'll have so much more to talk about on the flight deck with your future captains when you fly with them. (Another perk to doing unusual work, is people remember who you are if you did something outside the box... i have several captains who remember me as the cloud seeder!) just my two cents. AND CUT UP YOUR CREDIT CARDS!!!!! You have enough of a loan to worry about. Yeah, you may say, I need that now... but what happens 5 years from now when you are a FO and want to buy your first house in base, and can't b/c you have $30,000 on your school loan AND $20,000 on a credit card charging 21% interest? Guess what, on a FO's pay (even a regional captain's pay) you probably won't be able to afford your home

You are very STUPID!

How the F did you pay 60K at ATP? Those guys are supposed to be the cheapest around. And you mention you've got no college? How did ATP accept you? You need college over there. As far as your question, you're going to have to live in poverty for years untill you've got credit and are able to buy property and are able to pay-off your loan. If you don't do that then you could be paying 10-15 years, and that 60K is going to turn into 90K after you're done paying. Doesn't look like you got great advice from your parents or friends. Never ever use the bank for this type of loan. People usually save money or borrow from friends maybe a few thousand from the bank but not straight 60k from the bank, what was the matter with you? And you're asking this question to us now? I agree with crewdawg52.

These are the requirements for the PPL training:

Ability to Fly a PC-Based Flight Simulator
2 Hours of Flight Instruction in Any Aircraft Within the Last 6 Months
FAA First Class Medical Certificate
2 Years of College or Equivalent Work Experience

The two years of college or work is probobly something that could be worked out especially if someone just graduated high.

If I was younger I would goto a 4 year degree program to get my degree and ratings but I don't have the luxary.

$60K is a bit much especially for someone inexperienced with handling debt and money. Which is pretty much everyone.

BTW BURflyer & crewdawg52, new pilot was just asking a question. Calling newpilot a jerk is inappropriate and unwarranted.

I got my pp and I did the airline career program, it adds up to 60k with all the checkrides and the program cost. You don't really need a college degree to train with them.

If you don't have any advice or something nice to say please don't post.