Flight training financing options for part 61 schools
- Thread starter mrivc211
- Start date
Maximilian_Jenius
Super User
Good question! What happened to all the financing options that flight schools used to have in the 90's and 2000's? Forcing everyone to have coin on hand, or go to the big expensive overpriced academies. Which is the only place that still has financing options available to students?
USMCmech
Well-Known Member
Silver State happened.
mrivc211
Well-Known Member
whats that
USMCmech
Well-Known Member
https://en.wikipedia.org/wiki/Silver_State_Helicopters
"It’s been a little more than a year since Silver State Helicopters (SSH) abruptly shut its doors on Feb. 3, 2008 and went out of business. That day also marked the last time that approx. 2,000 of its flight academy students saw any hope of getting the training they had paid nearly $70,000 for in advance.
The perceived – and very probably factual - scam has been the talk of the helicopter industry every since. In fact, it has become a verb in some places: "If I sign up for lessons, you’d better not do a Silver State on me!"
"It’s been a little more than a year since Silver State Helicopters (SSH) abruptly shut its doors on Feb. 3, 2008 and went out of business. That day also marked the last time that approx. 2,000 of its flight academy students saw any hope of getting the training they had paid nearly $70,000 for in advance.
The perceived – and very probably factual - scam has been the talk of the helicopter industry every since. In fact, it has become a verb in some places: "If I sign up for lessons, you’d better not do a Silver State on me!"
CFI A&P
Exploring the world one toilet at a time.
Maximilian_Jenius
Super User
It was a great time to learn to fly back then. Almost every FBO had a Sallie Mae account, financing was easy to obtain, and training was only $35k from zero to hero.
mrivc211
Well-Known Member
People are still expecting $35,000 for it. I get a call about once a month from a Legacy captain who wants to put his son through training. The convo usually goes something like this:
Him: I called this other flight school and they want $65,000 for his training. Are they out of their minds? I make $28,000 per month and I still won't pay that.
Me: Yeah Jim, its about the cost of it now. Prices have gone up from 1999 when I got my ratings and you did in the early 90's.
Him: These guys are thieves. They think they're pulling a fast one of us. (not listening to anything I said).
Me: Its slightly higher than the average for southern california.
Him: I think I'm just going to teach him ground over dinner to save some money and have you guys do the training.
Me: That won't work Jim.
Him: Well how about I get recertified as a CFI and teach him in your planes at your school to save money.
Me: dial tone.
mrivc211
Well-Known Member
If I make it that far into the phone call I usually tell them he's gonna have to send his kid out of state because the cost of doing business in california is too high these days. BTW do you stay away from your condo in PSP this time of year with all the coachella druggies? The weathers been nice there lately. If you can drive upto SBD I'll pick you up in my light sport. I'm too scared to take it towards the banning pass with the winds up there. These planes aren't built for stuff above 15 knots.
ozziecat35
4 out of 5 great lakes prefer Michigan.
I had to google where Scottsbluff is... :shudders:
DE727UPS
Well-Known Member
Thanks for the offer. I sold PSP years ago and got a condo in San Clemente. About three years ago I hit a point where I could hold decent lines and reserve in ONT was going downhill. The condo in SC is rented out full time but has been a great investment. I'm hardly around ONT anymore except when I do Hawaii flying in the winter. Would love to see your plane sometime.
drunkenbeagle
Gang Member
I don't think that prices have really moved all that much recently - a 172 with a new panel and G430 here is about $150/hr. 10 years ago, it was was $110.
The focus on "zero-to-hero," "out the door" pricing is what I have seen change in the last decade. There used to be more bumming around the airport back in the day, at least as I remember.
thepedroid
Well-Known Member
Prices definitely have changed. I am scouting new schools in Scottsdale and had a meeting yesterday at Aerodyne Flight Center. Cost runs around $225 wet dual for a 2003 round gauge 172. Best bet for financing is probably a home equity loan, that's what I am doing. Thankfully its an investment property so I'll break even on the interest portion at least.
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Maximilian_Jenius
Super User
How so?
skypilot6
Well-Known Member
Well lets see, their application process is much more in depth than any other loan I had applied for. The loan wasn't disbursed to the school on the date it was supposed to. When the loan went into repayment I was never notified, no bill, no email, no phone call, nothing till I was delinquent and started to get some very harassing phone calls, the ones where I was threatened with being sued and arrested for 30 days late. Which the same exact thing happened to my sisters loans when they went into repayment. It was an adjustable rate loan, prime rate plus whatever %. This was back in 2009 just post recession, I was charged the maximum possible rate even though the terms of the loan stated otherwise. No one at SME could give me a reason why and wouldn't lower the rate per the terms of the loan, when they finally did it lasted 2 months then went right back to max possible even though the prime rate hadn't changed. And when I wanted to pay off my loan I called them for the payoff amount, then they wanted to charge me a $19.99 convenience fee to pay off my loan over the phone. I always pay my bills on time, and always more than the minimum amount, it was by far the worst financial experience of my life so far. I have another student loan for ATP, Thankfully I went for a loan from Bank of America and have had zero issues with them. However my partner did the SME loan for the same exact amount. His rate is almost double mine, his payments are double mine, all for the same amount taken at the same time, with similar financial backgrounds. I have other friends that have traditional college loans through Sallie and everyone has had issues at one point or another. I'm not anti student loan by any means, with how fast the aviation is moving these days taking the hit and getting into the profession earlier can easily make up the difference in interest in the long run and if it shaves 5+ years off flight training vs pay as you go, that's easily a million dollar difference in the long term because your getting to the high earning positions earlier.
Despite my own personal experience here is a good watch about Sallie Mae.
thepedroid
Well-Known Member
I've never gotten a loan through them for school but have heard many nightmare stories from clients who are getting mortgages through me. Based on that alone I would never recommend someone to go to Sallie Mae.
thepedroid
Well-Known Member
the beautiful game, the sweet science......the sport of kings... EDWARD FORTY HANDS!!!!