future777captain
New Member
Pay as you go is not easy when you make $1,500 per month max working full time at 10 bucks an hour.
Flying with Student Loans
- Thread starter future777captain
- Start date
flyingmaniac
Well-Known Member
Buy your own Piper Arrow for that amount of money. And give free time in the aircraft for flight lessons from instructors. There are a lot of instructors that need flight time.
surreal1221
Well-Known Member
Bummer. . . really.
Not everyone can afford to go to med or law school either.
darrenf
resident denizen
Aren't you still in deferment?
jtrain609
Antisocial Monster
Paying that loan off will be even harder when you're making that much or less then, eh?
This is not the time to be taking out a huge loan to fly for a living, it's the time to do it slowly. If you were to take maybe 1-2 years to finish your training, you'll be in good shape. If you rush through it, you're going to find yourself on the street without a job.
Trip7
Well-Known Member
yup goes away next month, coincidentally the same month my pay almost doubles. Gee, I wonder how that happened
BTW, talking with these loan companies goes a long way. I sent them a copies of my current paychecks as well as the ASA pay scale. They were happy to work out a deal for me.
surreal1221
Well-Known Member
Doubles? Almost? Dude. . .Marcus. . .
You smokin crack man . . .come on.
You going to the 700 or 200? $23 to $35 or $37 is no where near doubling. Now, I suppose if you're going from 75 MMG on reserve, to holding a line that can credit you in the low to mid-90's you might have some ground to stand-on, just maybe.
23(75) = $1725(2) = $3450
35(93) = $3255
37(93) = $3441
You'd actually need to get close to 93 (if on the -700) hours of credit every month to see your pay get as close to doubling, without going over. Credit more than 93, and you'll be over double your current pay.
Now, I know you said almost. . .but let's be honest, with average line credits in the mid 70's, doubling of pay is going to be a little out of reach. The extra $900 (if on the -200) or $1050 (if on the -700) at just MMG will help, but you said you have an $80,000 loan? I don't know your own loan repayment plan, or how much they are getting you for being in deferment for so long. . .but I would expect to see that extra change evaporate pretty quickly. So, yeah, you made it through first year without making a loan payment - but you're going to start making that loan payment coming up pretty soon, and will essentially see any increase in pay evaporate as you make that loan payment. So, all back to living on first year money again. Might as well set up an allotment to have the money go straight from ASA to the loan company so you never see it.
I will commend you on actually managing your finances so as to not actually see a reduction in expendable income.
You smokin crack man . . .come on.
You going to the 700 or 200? $23 to $35 or $37 is no where near doubling. Now, I suppose if you're going from 75 MMG on reserve, to holding a line that can credit you in the low to mid-90's you might have some ground to stand-on, just maybe.
23(75) = $1725(2) = $3450
35(93) = $3255
37(93) = $3441
You'd actually need to get close to 93 (if on the -700) hours of credit every month to see your pay get as close to doubling, without going over. Credit more than 93, and you'll be over double your current pay.
Now, I know you said almost. . .but let's be honest, with average line credits in the mid 70's, doubling of pay is going to be a little out of reach. The extra $900 (if on the -200) or $1050 (if on the -700) at just MMG will help, but you said you have an $80,000 loan? I don't know your own loan repayment plan, or how much they are getting you for being in deferment for so long. . .but I would expect to see that extra change evaporate pretty quickly. So, yeah, you made it through first year without making a loan payment - but you're going to start making that loan payment coming up pretty soon, and will essentially see any increase in pay evaporate as you make that loan payment. So, all back to living on first year money again. Might as well set up an allotment to have the money go straight from ASA to the loan company so you never see it.
I will commend you on actually managing your finances so as to not actually see a reduction in expendable income.
Trip7
Well-Known Member
I know it shouldn't count towards pay, but per diem also goes a long way. Tax free too. 300 TAFB adds $480 tax free. That alone with a 70ish hour line will make pay more than double.Doubles? Almost? Dude. . .Marcus. . .
You smokin crack man . . .come on.
You going to the 700 or 200? $23 to $35 or $37 is no where near doubling. Now, I suppose if you're going from 75 MMG on reserve, to holding a line that can credit you in the low to mid-90's you might have some ground to stand-on, just maybe.
23(75) = $1725(2) = $3450
35(93) = $3255
37(93) = $3441
You'd actually need to get close to 93 (if on the -700) hours of credit every month to see your pay get as close to doubling, without going over. Credit more than 93, and you'll be over double your current pay.
Now, I know you said almost. . .but let's be honest, with average line credits in the mid 70's, doubling of pay is going to be a little out of reach. The extra $900 (if on the -200) or $1050 (if on the -700) at just MMG will help, but you said you have an $80,000 loan? I don't know your own loan repayment plan, or how much they are getting you for being in deferment for so long. . .but I would expect to see that extra change evaporate pretty quickly. So, yeah, you made it through first year without making a loan payment - but you're going to start making that loan payment coming up pretty soon, and will essentially see any increase in pay evaporate as you make that loan payment. So, all back to living on first year money again. Might as well set up an allotment to have the money go straight from ASA to the loan company so you never see it.
I will commend you on actually managing your finances so as to not actually see a reduction in expendable income.
I also run much leaner than most due to being young and having no responsibilities. No car payment, mortgage etc. I easily lived on 1st year pay while even paying some of loans. I didn't defer all of them, not that lazy
Now I will be able to send almost all extra money back to the loan company, and still have plenty of money to do whatever I want. My loan doesn't feel like a burden to me at all. Now I feel for the Riddle guys with 120k+....With student loans 100k is when you're walking into no man's land...
Take the loan, follow my dreams, and live life to the fullest. And pay the loans back as fast as possible while doing it. That's my plan and I'm sticking to it. If it works, great. If it doesn't, it was so worth the chance:nana2:
darrenf
resident denizen
You do realize your woman reads this forum right? She might take offense at that statement.
wheelsup
Well-Known Member
While true in your 2nd 3rd 4th 5th year at a regional you are making enough to live on and pay loans, while most people working $10-$12/hr jobs trying to pay as they go don't touch the income level of a regional co-pilot. Even if they can save a few thousand a year they are doing well.
To put it in perspective the last month I was a CA I made just shy of $10,000 gross $6,500 after tax, most people can't touch that on HS diplomas trying to pay as they go.
Trip7
Well-Known Member
Precisely. It makes more sense to tell a career changer established in their career making good money to pay as you go. But to tell that to a high school kid or someone fresh out of college, it would take many many years to get their ratings done. Like telling someone wanting to be a lawyer to pay as you go.
wheelsup
Well-Known Member
Keep in mind the military option is a valid one, for those that are looking at an unassisted college experience VA benefits certainly help out big time. You could go military for 4 (?) years, come out with VA benefits to pay something like 40% of your ratings, and do college online once you are at a stable job using military experience as college credit. But I can understand the apprehension to not go into the military over the last 7 years or so.
surreal1221
Well-Known Member
:yeahthat:
It's worked out great for many people, myself included. Flight training AND degree paid for.
It's worked out great for many people, myself included. Flight training AND degree paid for.
killbilly
Vocals, Lyrics, Triangle, Washboard, Kittens
Marcus,Precisely. It makes more sense to tell a career changer established in their career making good money to pay as you go. But to tell that to a high school kid or someone fresh out of college, it would take many many years to get their ratings done. Like telling someone wanting to be a lawyer to pay as you go.
What's going to happen to your tax liability when your pay goes up? I don't know what the bracket is for you.
I was astonishgly happy when I took a new job 18 months ago for a 45% increase in pay. But because I jumped a few tax brackets that increase actually came out to around 15%. I was still happy, mind you, but the increase wasn't as great as I thought it was going to be.
Paycheck.com (I think) has an excellent payroll calculator that lets you plug in various numbers with 401K deductions and stuff to get an idea what your take-home will be.
Trip7
Well-Known Member
Not sure since the income can vary on such a large scale (reserve vs. lineholder etc.) Per diem is tax free so that helps alot.
Maurus
The Great Gazoo
I had 45k for my flight training. My degree id funded through a fund my parents set up a long time ago. Even though I didn't go as high as others have, I still wish I didn't get these loans. Will the payments be livable, currently yes but I would rather live without the worry.
And people deferring your payments, don't wait, start paying as soon as you can as even though payments can be deferred, interest is not deferred.
And people deferring your payments, don't wait, start paying as soon as you can as even though payments can be deferred, interest is not deferred.
Actually, you can't work in any country with an FAA ATP. Europe is pretty much off-limits unless you have right to work and JAA. Most other countries require a type and/or time in type. There are a FEW that will take an FAA ATP, Cathay Pacific being one of them, but obviously those positions are extremely competitive and tough to get.
We all wish we are fat, rich and happy 747 captains by the time we're 50... but the reality is many guys dont reach the "top" and even those that do, the "top" isnt what you expect it to be. Pure luck and timing has so much to do with it. For example, I've met many US Air, United, Northwest guys who've been through multiple furloughs. Of course I've met a few that have never been furloughed in their careers, but they are few and just a result of good timing. I know a guy only 25 or 26 who's already been through one airline that went under, and now a furlough with another airline... both in a one year span! It's good to be optimistic, but at the same time, you have to realize the reality.
Everyone's head turns in surprise because they are impressed. They are impressed because they only know what they perceive to be true - that piloting is cool and that pilots make huge bucks. They have no INKLING that we dont get paid for every hour we are at work, or that we can work 16 hour days, or that their pilot has had only 5 hours of sleep due to reduced rest, any of that crap. Do you really care to impress strangers who have no idea what they're talking about? So what if "most people think you are a cut above rest"? Inside, you will know you only make $1600 a month. and FYI, pilots really dont get much of the respect they used to. Obviously some people you meet will be impressed, simply because it IS an unusual profession and they WILL think you make 300k a year. But if you cut in the security line (like you should because you are the PILOT that will be FLYING them), you will get 10x more glares than nods.
Well I'm not here to tell anyone not to become a pilot, it's not going to work anyways I KNOW because I don't listen to that even now when legacy guys tell me to quit and go do something else before I ruin my life.
About loans though - I didn't have any help from the parents so I had to take out loans. It's like credit cards... I didn't realize it when I was in school because it doesn't feel like you're paying anything at the moment. Well, I now know that debt (even for a semi-good cause like for career) is incredibly stress-inducing. I feel like if I could get rid of this debt, I could wish for nothing more in life. I could be making 50k for the rest of my life and still become rich because I wouldn't have to pay out to anyone else but myself.
I don't know how much you're planning to take out, I suppose a small amount is doable. But Joliet is right - loans with interest rate of 6, 7, 8% for 20 years comes out to about DOUBLE your original loan amount. If you're taking out 50k, that will be at least 100k by the time you pay it off. Sure, you could try to pay it off in less than 20 years, but often it's difficult to do that unless you land a good job in a short amount of time. I would like to pay off my loans ASAP also, but it's just not going to happen unless I move up in the food chain in the next few years.
I know it's hard to shake off the flying bug, so if I had to do it again, I know I would still do the pilot thing. But go about it in a completely different manner... definitely NO soul-crushing loans.
I made over 20k in student loan payments ON MY OWN this year. It's not an easy feat for a 2nd year FO at a low paying regional. It makes you realize you little money you can live on if the debt factor isn't there. When I think about what else I could've done with that 20k, it kills me. How many 20-something year olds can say they saved 20k for retirement or a down payment for a house in ONE year? I could've been one of them, but instead I'm a slave to the banks.
I hope you make a smart decision!