12% interest

Scandinavian13

New Member
Yeaaaah. That would be the interest rate offered to me on my loan to attend PanAm. I should've started a month ago, but SLM delayed the loan (they said they'd have it ready in 24 hours, which ended up being 2 weeks), then once they finally approved it, they gave me 12% interest, and that's with good credit and a cosigner with good credit and monetary assets.

Crap, if you ask me.

Instead of becoming a slave to SLM, I've decided I'll get a job for a while and try again in a few months. Maybe this bailout will help them be a bit more reasonable. We'll see.


-- EDIT: --

N826AW:
The paperwork SLM gave me claims $158,502.69 over 15 years.
Even worse.
 

N826AW

Snooki's Baby Daddy
I just used a basic calculator on Bankrate.com Yours may have been higher due to an origination fee and any interest that accrues during the initial period when the loan is in forbearance.
 

TallFlyer

Well-Known Member
As some would say on here (and I'd be forced to agree) debt free is a great way to go. I actually did a combination of the two and at the moment I'm sitting on about 12K at 3% or so. I wish it was a lot less.....

In this current job market it makes absolutely no sense to go into huge amounts of debt to pay for some fast track academy. Just take your time.....
 

wolfeman

Well-Known Member
I was looking for a loan to. and SLM wanted 13.5%. It is crazy how high the interest rates as gotten over the years. So I got a Job on a ship and after 6 months I will have enough money to get most my ratings.
 

da10pilot

New Member
When I started training, I took a $30K loan out at 6.5% adjustable (good credit and no co-signor even) and am beating myself up over it. Just saying in hindsight, it would have been better to have a second job to pay for the training. It would be one thing if you'd get a $60K/yr salary upon completion but that's not going to happen. No need to rush through it in this market, maybe even any market.

And think about it this way, do you want to pay $550+/month for 20 years (or whatever your terms are)?
 

wheelsup

Well-Known Member
Not to mention your best bet would be to pay the loan off ASAP which means you shouldn't be saving for retirement until it's paid off, thereby delaying your retirement savings and costing you hundreds of thousands of dollars in the end.
 

slushie

C56X ATP CFII MEI
I was thinking how it would actually be good for me if this "bailout" caused a steady inflation. Thinking about how my skills and pilot certificates would draw a higher pay rate in relation to the $65k I have in school debt. Yeah, that $65k was invested in things that will follow inflation, while the loans are stuck in 2002-2006 dollars! wooh! but then I read this:

When I started training, I took a $30K loan out at 6.5% adjustable...
And thus remembered that at least $10k is at an adjustable rate....crap.
 

da10pilot

New Member
And thus remembered that at least $10k is at an adjustable rate....crap.
Exactly...once the Fed starts raising those rates again, costs even more. IT was nice when it was down to 4%, then it shot it up to 8% I think. Now its just under 6 again. Certainly a roller coaster over a 15-20 year term.
 

tonyw

Well-Known Member
It all depends on how much the job you will be qualified for pays. If it is an MBA or a JD and you will likely be making $75k after you get the degree that is one thing.

If you will be making $20k it is another.
 

Champcar

Well-Known Member
When I started training, I took a $30K loan out at 6.5% adjustable (good credit and no co-signor even) and am beating myself up over it. Just saying in hindsight, it would have been better to have a second job to pay for the training. It would be one thing if you'd get a $60K/yr salary upon completion but that's not going to happen. No need to rush through it in this market, maybe even any market.

And think about it this way, do you want to pay $550+/month for 20 years (or whatever your terms are)?
550? try doubling it.
 
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