12% interest

[Murdoughnut]

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.

An MBA wont' get you squat unless you have previous business experience. The value of a JD has decreased considerably now that law schools are flooding the country with attorney's. Still a good salary, but I would wager somewhere closer to $50k on average.

 

[VATechPilot]

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.

ha-ha-ha...MBA, yeah maybe if I was smart, but no, I gots to be stubborn and just haaaave to be a pilot. But I would not be planning on flying commercial soon after, instead would be making no less that 35k. However, I still am not seeing that 12% interest being anywhere close to feasible.

The value of a JD has decreased considerably now that law schools are flooding the country with attorney's. Still a good salary, but I would wager somewhere closer to $50k on average.

Crap...there goes my "back-up plan." Now what am I going to do with a history degree?

 

[cfii2007]

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.

Are you SERIOUS????????????

 

[da10pilot]

550? try doubling it.

According to the bankrate calculator, it comes to 550. That doesn't include any fees. I think $1000/month is a little excessive. Even at 15 years, it would ONLY be $600+.

 

[SpiraMirabilis]

My credit card only has a 5% APR. 12% is insane

 

[SpiraMirabilis]

According to the bankrate calculator, it comes to 550. That doesn't include any fees. I think $1000/month is a little excessive. Even at 15 years, it would ONLY be $600+.

his loan probably has deferred payments (but not deferred interest!!!)

 

[surreal1221]

A few signs that you don't need to take our such a loan.

If you have to defer payments. . .you shouldn't be taking the loan out.
-Bring the amount down to a level that you can actually afford to pay without deferring payments.

If that's not possible, it is perhaps time to re-evaluate one's financial situation. Otherwise, bend over and grab your ankles. You're in for one hell of a raping.

 

[SpiraMirabilis]

By the way, there is ZERO chance you can repay this loan on a RJ FO's first year salary, even if you could get hired right away which you can't these days. I net like $1500/month. $1000/mo for a loan, only $500 left for rent, food, insurance, car, gas, etc.

 

[Champcar]

According to the bankrate calculator, it comes to 550. That doesn't include any fees. I think $1000/month is a little excessive. Even at 15 years, it would ONLY be $600+.

That loan will gain serious interest when he is training and in school. By the time he gets around to being able to start paying it off it will be in the 1K area. Plus once the feds start raising rates it gets even worse.

 

[Scandinavian13]

Are you SERIOUS????????????

Very, dreadfully serious.

his loan probably has deferred payments (but not deferred interest!!!)

Precisely.


Here are the numbers:
APR - 13.075%
Finance Charge - $94,436.69
Amount Financed - $62,066.00
Total of Payments - $158,502.69

Payment Schedule:
First Year (while in school) - $10 good faith payments
179 Months - $880.43
1 Month - 785.72

Ouch. How about...NO!


____________________



Here's the story. Matt's original post is using the numbers from my loan offer. So, like all of you have said, I didn't do it. I'm taking a job until things can stabilise a bit (IR-wise) and I can save some money so I don't have to put it all in a loan. Matt and I will hopefully start in Feb, but we'll see.

If you have to defer payments. . .you shouldn't be taking the loan out.
-Bring the amount down to a level that you can actually afford to pay without deferring payments.

That's what I'm hoping to do with this job. Bank enough to cover payments for the first year. I'll have a low time position doing dispatch during training, too, so that'll definitely help.

 

[mattp1803]

Ouch!

 

[da10pilot]

I wasn't taking into consideration of deferred payments, which is a bad idea as you can see the difference it makes. As was mentioned, how much will you be making once your done with training? Do a simple budget and see what you have left over. Once you take in account all your expenses, I'm sure you'll find out that your expenses will drastically outweigh your income.

 

[VATechPilot]

Matt and I will hopefully start in Feb, but we'll see.

Speak for yourself, If rates have not gone down enough by then, I just might have to find a job for a while myself. I'm thinking substitute teacher. They make decent money right? Or I guess I could just go into an illegitimate business. Ooh ooh, and there is always that castle porn store, maybe I can be a salesman there. Or with my brand new history degree, perhaps I can give tours around the airport, that way the foreign students have a good background history of the place. And if all else fail, IN-N-OUT!!! Wait, I could be a roadie for my cousin. Yep, the possibilities are endless. The future is not bleak at all. ?

 

[killbilly]

These kinds of rates - unsecured debts without collateral of any kind - will ALWAYS be high even if the prime rate went down to 0.0%.

Tell Sallie Mae to bite ya and go cash. It's slower, but you'll be happier. Promise.

 

[Prino]

thats a damn mortgage payment. i have credit cards with better fixed rates

 

[Barty]

I think I'd pass...go find an FBO or school with some less expensive to fly aircraft and go get the PPL and IR on your own dime. Find enough people to split time with and you may even be able to get your CSEL without incurring debt.

 

[Champcar]

Please read.

http://forums.jetcareers.com/genera...inking-of-getting-out-a-big-private-loan.html

 

[matt152]

Crap...there goes my "back-up plan." Now what am I going to do with a history degree?

My BA is in philosophy. I ended up getting a master's in accounting. Jobs as far as the eye can see!

But the cube life is not for me.

 

[Nihon_Ni]

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.

SMART!!!

You should make a few flights before you go, then study as much as you can while you're at sea instead of watching TV in your off time. When you come home, you'll be ready to take a few written tests and can breeze through your training.

 

[trafficinsight]

My credit card only has a 5% APR. 12% is insane

correct me if I'm wrong but your credit card is probably 5% plus whatever the prime rate is. His 12% is probably just 12%.