Loans

mastermags

Well-Known Member *giggity*
I never had hoped to put up a loans post, but it has come the time. If someone could refer me to an existing post, that would be great as well.

Here's my situation... I need about $10 or $12 grand for flight training, and I hope to complete most of my stuff in the next year. I want to continue the FBO route, so I guess I want cash. I would like some feedback (or referal) about what other people have done... ie, educational loans from their bank, or student loans from Sallie Mae etc... I dont want to stretch payments out over longer than 5 years hopefully, so what can you tell me. Testimonials and horror stories are appreciated!!

 

Hollywood

New Member
i think it would depend on what fbo your at as far as what type of loans you can get for flight training. i don't believe key or sallie mae will loan money for an fbo that hasn't made arrangements with them. there is a lot of paper work involved with that so many small flight schools that offer flight training as a "side note" to their normal fbo operations don't bother. especially if they don't have a lot of students. you could try taking out a personal loan from a normal bank but i imagine the interest rate would be much higher than would be for a lending institution that offers educational loans. not to mention your not buying something that can be used as collateral(sp?). not sure how a bank would feel about lending money for that sort of thing. there are many flight schools out there that are very similar to an fbo with more of an emphasis on flight training that do offer key and sallie may loans.
 

kellwolf

Piece of Trash
Pretty much what Hollywood said, I agree with. I'm almost in the same situation. I can keep working 60 hours a week at SWA to pay for training, or I can get a loan and KNOW I have the money there. I'm going to need a loan in about 9 months anyway for MAPD (yeah, I'm thinking about that again) Key Bank and Sallie Mae are the two most popular, but like Hollywood said, they really only lend to people that have prior arangements with them. A signature loan would be a decent way to go if you didn't want long re-payment terms. This would also be the way to go if you're going to an FBO that doesn't use Sallie Mae or Key (or if you just want to stay away from those two). Downside is that, generally, your credit has to be pristine or you have to have something for collatoral. If you do wind up with a 15 year loan, if there is no pre-payment penalty, there is nothing that say you can't pay it off in 5 years.
 

DE727UPS

Well-Known Member
try www.pilotfinance.com

The school has to be approved but they approved me and I'm not even really a school...

Anyhow, if you like what you see go to your FBO of choice and see if they are willing to get approved...it's no big deal.
 

shooter13

New Member
The problem with pilotfinance is that they will only finance one rating at a time. I called them and asked and was told, they won't loan for another rating until you are half finished paying for the previous one.
 

JEP

Malko In Charge
Staff member
SallieMae is great. I have used them a couple of times and have had no problems whatso ever. Applied online and a week later the FBO had the dough.
 

StevenL

New Member
I went the FBO route and borrowed through Sallie Mae. I didn't have any problems with them and have no regrets.

Are you a credit union member? Some credit unions will give personal loans and the rate is usually not too bad.

Good luck.
 

sbe

Well-Known Member
other thing about pilot finance is if you have sketchy credit, bam, you're socked with an 18% APR. You'd be better off putting the training on a credit card!
 

SteveC

Really?
Staff member
[ QUOTE ]
other thing about pilot finance is if you have sketchy credit, bam, you're socked with an 18% APR. You'd be better off putting the training on a credit card!


[/ QUOTE ]
Or get a second (or third) job and pay cash.
 

sbe

Well-Known Member
[ QUOTE ]
Or get a second (or third) job and pay cash.

[/ QUOTE ]

y'know that's what I've done. But...strange as this sounds, it's not for everyone. All my spare cash goes to paying for ratings. Things get tight from time to time, but I'm bound not to take out a loan if I can help it. Some people don't like their cash 'cushion' to get as low as I sometimes have to let mine get when I get into the 'heat' of a rating...such as now, with 19 hours to go in finishing off my commercial and practicing those maneuvers nonstop.

And, being the age I am in the field I'm in, I don't make a ton of money. It's easier for those who have jobs that give them a larger portion of disposable income. I don't get that much. So I have to do stuff on the side to be able to pay cash...I teach horseback riding and have 2 horses in full time training and 2 horses in part time training, with a 3rd full time coming in for one month only in April. Means 3 nights a week after work, I'm at the barn late, and part of my weekend goes to that too. Besides that I squeeze in freelance graphic design and some commissioned oil paintings where I can.

Basically what I'm trying to say (and warn) is if you do go the cash route like me and have to finance yourself with extraneous jobs, make sure you take care of yourself. I enjoy riding but the training is merely a job for me - I'm riding a very thin line between total dedication towards paying for my ratings and complete burnout. I can tell you right now I can't wait to finish off my CFI this summer so I can start teaching evenings/weekends and get away from riding every night. It's hot/cold (depending on time of year), dirty, at times dangerous, and very hard physical work...for demanding clients that want that blue ribbon at all costs and many times are very unknowledgeable about the training process. Not that CFIing doesn't fit some of those bills.
I'll still teach riding, but I can't wait to make the transition.

That's my story. The other caveat is unless you DO have a very good paying job, you're probably going to go slower than Mr. Academy Prodigy who takes out the loan and goes fast-track.

It's not for everyone, but despite the incredibly long days, it's worked well for me.

Sarah
 

Tim

New Member
I used Sallie Mae and I have no complaints on the way everything has been handled. I called them once about money they had given the school because a draw had been taken way to early. They investigated what happened and basically called the financially strapped schools bluff. The school had to return the draw because it wasnt authorized yet. There customer service is wonderful and you can make your payments online. But then again if you can pay cash now until you leave for MAPD or wherever you go I would still do that.
 

kellwolf

Piece of Trash
Yeah, the downside to the cash thing is it's not a for sure deal. If overtime starts to dry up, or more people transfer in with higher seniority, I'm done. Right now I'm working about 60-65 hours a week tossing bags, and it is getting OLD fast. I'm almost to the point where the 18% APR would be preferrable to killing myself everyday.
The thorn in my side is that I had to declare bankruptcy two years ago, so that doesn't help much. Since then, my credit is spotless.
 

Gonzorox

New Member
For those of you who use Sally Mae... which loan do you take out?? I noticed on their website they have "Career" loans and "Undergraduate" and this and that. Which is the one to apply for if you were planning on going to say ATP or AriBen??

Anyone have any idea how much a credit-worthy cosigner helps on that interest rate???

thx
Neil
 

Gonzorox

New Member
Was the interest rate 14.5% as it states in their example??? Or is it different based on your credit history??
thx
 

ready2fly

Well-Known Member
Good Lord, NO! Our interest rate with Sallie Mae is between 8% and 9%. I don't remember the exact amount though.

Still high IMHO, but pretty standard for a school loan.
 

StevenL

New Member
Mine was a career loan. I think it is 7.75% right now, but I believe it can change as it is a variable rate.
 

mastermags

Well-Known Member *giggity*
I guess I forgot to add that I am a full time university student... does this change my eligibility as far as getting a loan (what Im asking is, can I get a student loan and use it for flight training?)
 

flyallday

Well-Known Member
I need a little advice with loans too

I am tired of my job and I hate it so much, Im sick of saving up money. I am planning on taking out a 28k loan for the rest flight school, UVSC and living expenses. With the loan my monthly payment would be close to 200. As a CFI and a 1st second year FO would I be able to pay the loan every month with such a low income????
 

SteveC

Really?
Staff member
You could then afford to live in a van down by the river....
Catfish for dinner once a week!
 
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