I understand the principles of mathematics that dictate the operation of a business/airline.
It's hard to pay decent wages if you are selling only 19 seats on an Emb-120, but have to pay two pilots.

If a regional is not making any profit then why should they stay in business?
If they need to furlough to cut expenses or because people are not buying tickets, that actually makes financial sense to me. After all, what good is it if they chose to NOT furlough some pilots and then the entire airline goes out of business?
I'm not the "down with capitalism and big business" kind of guy.
Big business is just as good of an economic stimulus package as the military is. People gotta get paid so they can buy stuff.

 

Slander? Really?

I've said nothing slanderous. Good golly, people are defensive. I am not expecting anyone to look up to me. Nor am I wagging my finger at you. I am just saying you CAN payback loads with a low paying newbie pilot job; (and that I pitty you guys flying for the Regionals, it's a mess there)

All I am saying is that I was hit with an "unforeseen event" too, but I paid back my loan. I am simply having a debate; telling the other side of the coin. It is not "Impossible" to pay back, it just requires choices you may not want to make. I enjoy a good debate, so lets have one without the poo throwing. You argue your side, I argue mine....that's the basis of a good debate. Right?

 

This thread:

 

Perhaps I received or misinterpreted your comments in a manner you weren't intending them.

I think it is great that you worked your butt off to protect your parents credit rating, but I don't understand why you were on the hook after being defrauded and robbed. Did you go to court or get a lawyer?

 

Heck yeah, we were all over the News. Lots of folks had Airline Pilot Dads (moms?) and we had lawyers from ALPA working with us as well as the FBI. Back in the days of ATA, the Government said loans provided by Banks like Key to Flight Schools like ATA were no different than a loan to a beauty school, or any other 1 800 Big Rigs kind of school. It was a loan, it came with ZERO protection, from either the Banks or Gov't. Lots of folks declared Bankruptcy ; I just could not because of my parents. So I had to make it work; a lump sum payment wouldn't work, because no one would loan a kid money after she already owed Key 50K, and I didn't have a Money Tree to shake in the backyard.

Debt and Loans are going to be a huge topic regarding finance in the future. I don't claim to know how to fix it; I just know how I fixed my scenario. I could sleep in hangars and eat the free Venison and other game my friends at the airport gave me. But I was young with no kids and no obligations.

RadialGal

 

Immediately after I posted I had the realization of what you pointed out here. It wasn't Key Bank's problem. I understand that.

What I find strange is how, even when you want to set up a payment plan or extend forbearance, KeyBank doesn't care and just says "It shows here that you've used up your 6 months of forbearance and your 1 year of interest only payments". They just don't even care to work with a person who truly desires to pay back their loan (because we promised that we would do so).

Instead they sell off the loan to some collection agency for pennies on the dollar- who then sells it to another and another when you don't reply (or when you inform the collection agency that they are violating a state law that forbids harassing and embarrassing you by calling your workplace repeatedly).

I feel obligated to pay back my loan that I took out in good faith- when I have the income to do so- but I'm not going to pay back my debt to some random collection company that won't give the money to Key Bank.

Once you've used up your forbearance KeyBank really isn't interested at all in setting up a plan that can allow a person to pay back their debt that they feel obligated to pay back.
That's where my attitude comes from that caused me to post "For the record, KeyBank received $14 million of our tax dollars in the bailout of 2008". They didn't even want to make it so that I can pay.
Which leads me to believe that writing the loss off ("loan charged off" as it says on my credit rating) must be extremely beneficial to KeyBank's tax obligation to the IRS. I wonder if 100% of the money they lose is just erased from their tax obligation?
Maybe the guy who worked in this industry can answer that question or correct my suspicion.

If KeyBank were to call me when my paychecks say United Airlines on them- I would be more than happy to pay. In fact, when I can afford it, I would seek them out... except that they have sold the loan to collection agencies, charged off the loan and are done with it.

 

Just like you said. Key sold if off for penny's on the dollar. Now you can offer the collection agency penny's on the dollar to settle it. Why pay Key? Personally I wouldn't pay anyone at that point. Eventually it will go away. Not much recourse they have on a unsecured loan.

 

The collection agencies offer about 40% off- not pennies on the dollar. I figure that they bought the loan from Key for pennies on the dollar.
Yeah I would never pay the collection agency. I had ended the last post with "The collection agencies can **** up a rope.", but when the forum edited out the word **** I went in and just deleted it.

 

Ho-le-fook, this Matt guy is my new second favorite poster on da interwebz.

 

Are you saying I have "internet street cred"?!!!!
YES! All my dreams have finally come true!
Do I get a medal or something?

So are you your number one favorite poster?