Loans

M

MUTiger

New Member
Alright here's the story. I want to start working toward my PPL this summer and the only way was this will be possible is with loans. The problem is I don't have much money in the bank, I have no credit, and I currently don't have a job. Is it difficult to get a key loan? Basically is what I am trying to ask is are they sticklers for this kind of stuff or are they flexible?

-tiger
 
From my experience in finance I would say your chances of getting a loan with no job, credit history, etc is pretty minimal. I guess you are kid (just by your situation), work this summer and get you license next summer.

Getting into debt over flying at a young age is not worth it.
 
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Getting into debt over flying at a young age is not worth it.

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Oh really? I'm 20, (been flying for 5 years this month), a full-time CFI/CFII, an FSI grad., and soon to be an ERAU grad. I'm going to be paying off my loans until I'm aproximately 52, and if you ask me, it was worth every cent.

I wouldnt go so far as to say its not worth it- just be absolutely sure its what you want to do. It is a lot of money.
 
i am using a key loan to finance my flight training. i can tell you that they are real son of a b!!tches. key and sallie mae loans are NOT easy to get contrary to what their websites say. unfortunatley, in your situation you have no chance in hell. how do i know? because i was in your situation only i had a job. i didn't have much credit but the credit i had was pretty good. your only chance is to have a co-signer. ( who has excellent credit and makes enough money to cover the loan payments should you default). i battled with those bastards for two years. finally, i got a co-signer. ( a wealthy relative with A-1 credit). get this, they still turned me down. why you may ask? i had an unpaid doctor bill in the amount of $45 from '99 that i never recieved. i actually had to re-apply once i was turned down along with a letter stating why the bill was unpaid. if you want to finance a car or house, most places don't look at medical bills unless ther has been a court injunction. sallie mae is the same way. you could say i'm an expert on these matters as i have went the full 12 rounds with these people. if i didn't have a relative to co-sign, i wouldn't e flying today that's for damn sure.
 
Well my parents have immaculate credit, I could give that a try. I guess I should really start building credit shouldn't I?
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Thanks for the help.

-rabid
 
In debt till you are 52?? That is intense; I hope you are able to pay it of many many years before that.

How would you pay of the loan if you do not have a job? I think you best bet is to either ask you parents to pay for it, expressing interest that it is something you would like to pursue, or get a job over the summer and pay for it yourself (maybe fueling planes for the local flying club).

How old are you out of interest?
 
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I think you best bet is to either ask you parents to pay for it

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Not everyone's Mum and Dad can pay for their education Iain. I feel bad for people who have gotten a free ride through life because they haven't had to really worry about bills and making ends meet. Although, maybe I'm just jealous.
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Iain, that's a good idea except for the fact my parent's are already paying a large sum of money for me to go to college. Which leaves me a couple of options I could transfer and go to SIUC, I could work and try and generate some credit, or I could wait three years until I am out of college. I'll prolly just wait and save up some money and go from there. I'm 19, so I guess I still have some time. Although it's going to be hard considering I pay for everything besides my actual school bill. Ahhh the things we do to fly, ehh?

-tiger
 
i know that key and sallie mae like to see "revolving" credit. they told me they'd like to see you have two credit cards for two years. house , car, cell phone bills all go against your credit if you don't pay, but unfortunatley they don't count as "revolving" credit. keep that in mind when trying to establish credit for one of these loans. get some credit cards and be responsible with them!
 
Sallie Mae also likes to see INCOME... although I have very good credit, my income is non-existent since I'm a student. They rejected my solo application, but accepted with my mom as co-signer.
 
Maybe hold off on getting your PPL till once you have completed your degree (that is the most important thing), and to keep you foot in flying. Every 2-3 months take a flight, maybe a $100 hamburger to a local airport, or just a buzz around with an instructor. That way you get the best of both worlds, and you do have to remember once you have your license you will still need to fly frequently to maintain your skill.

The reason I suggested you ask your parents to pay for it. As if you get a loan, and have no income they would effectively be doing the same, but you packaged the sale differently, and slightly less directly.
 
As far as employment goes I'm going home after the school year is over and I am going to get a job. Then I'll come back next fall and get a permenent job here. Believe me this umemployment thing is temporary, I feel utterly useless and helpless without a job. I'm gonna ask my folks if they'll cosign and apply just to see what happens. Who knows maybe with their credit and income I'll get one. We'll see...

-tiger
 
Well the government largely pays for college here, and what left you have to pay they will give you a loan and take out repayments via taxes once your making over a certian ammount, $30k maybe. People still complain though cause many years back it was totaly paid for by the government.
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I got a key loan with no problems, actually I was suprised I got it so easly, but I did co-sign with my dad who has a decent income and a good credit record and I also have a good credit record.

Best of luck to ya!
 
I am a proponent of the pay-as-you-go school of thought. Even if it takes a little longer, it will be advantageous to not burden yourself with the equivalent of a mortgage so early in your career. This is especially true in the current state of the industry.
 
I'm sure there are as many opinions about this subject as there are pilots (current and aspiring).
For my .02, I don't regret getting the big Key loan a bit. I could have done the pay-as-I-go route, but as I'm 26 it would have most likely ruled out any chance of getting paid to fly (as a CFI, mind you) for at least 5 years. Add a few years of time building and that would certainly limit my capability for success and growth in an airline career. The way I see it, the sooner you get started the farther you can go.
 
Dave, I just had the same conversation with my mom about taking out an huge loan so early on in life (I'm 21). I told her that I would rather take an extra 1 or 2 semesters off from school if it would mean that I would take out less money for training.

If I lived at home and trained, I would only need around a 10 thousand dollar loan to complete my training through my CFI. Working, the money saved from living at home, and cheap rates at my hometown flight school would allow me to accomplish this with minimal debt.

My instructor here at UND for the abbreviated PPL course, he is $92,000 in debt and by the time he is done paying it off, he will have paid around $150,000 or so, could be less, but his payments per month are $675. I would find it hard to pay off more than the $675/month on a CFI salary. So in the long run, he will have paid off a house. That is too much in my eyes.
 
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My instructor here at UND for the abbreviated PPL course, he is $92,000

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$92,000!?!?!?!? Is that for college and ratings? If so I guess that's not too bad, but if he spent $92,000 on ratings alone, I don't think I'd want to fly with him. He's either lying or a slow learner.
 
I need to get a loan my self, but you guys shouldn't be surprised if you can't get a loan solo from one of these companies, they aren't stupid!

They say right on the website they need a co-signer (for the aviation related loans, they all havem), or some give you horrible interest rates if you have no co-signer.

I'm going to have to start begging my grandmother to co-sign for me soon!
 
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