More questions on loans (Sallie Mae specific)

jtrain609

jtrain609

Antisocial Monster
Heya everyone,


So right now it looks like I'm going to end up borrowing from Sallie Mae to complete my flight training. From my estimates, it will cost me $12,400 to do my commercial with my current FBO and my multi/CFI/II/MEI with ATP. This should be taking into acount enough cash to cover housing and money to eat with.

So should I borrow $12,400 exactly and pray that my estimates are perfect (my gut tells me that my math is horrible and that's a bad idea)? Should I borrow $15,000 in case something runs over? What happens to extra cash with Sallie Mae if you don't use it? Does it go to pay back your loan?

Thanks for the input ya'll

Cheers


John Herreshoff
 
If the school or FBO handles any left over amount correctly, they will return the money back to Sallie Mae. I don't know if that amount has interest tacked onto it though.
Depending on the interest rate, if there is interest on any surplus left over, I'd take the 15 and let them return the surplus.
 
Are you sure that you take out a single lump sum from Sallie Mae for 2 different schools?

I ask because with Key Bank you had to 1) be enrolled in one of their approved aviation schools and 2) were only allowed a specific amount over the cost of training (for living expenses or loan repayment).

I borrowed more than the cost of ATP training so that I would have the $$ to subsidize flight instructor pay for a couple years.
 
That I am not sure of either. I figure that honestly that would be the easiest way for Sallie Mae to do it, though I could see it happening differently.
 
Perhaps you could charge the cost of your commercial on a credit card and then borrow more than the cost of ATP's CFI program to pay off the previous charges.

Just throwing an idea out.
 
With Sallie Mae you can switch the funds to another of one of their approved schools, but required you to go through the whole loan process again. I opted to stay with the school where the funds were at, so I couldn't tell you about it.
 
Might as well just borrow from pilotfinance.com is I'm going to charge it to a credit card
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I'd seriously suggest taking out that $15,000. As one poster mentioned, your flight school will return any money that's left over so you won't have to pay it back later. I'm sure you know that flight training is never "right on" estimates.
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I would have to disagree with taking out more than you need because your loan origination fee is determined by the amount you borrow. On an extra three thousand dollars it adds up not to mention you also have to pay interest on the origination fee. I would also recommend someone besides Sallie Mae if at all possible. If you are a full time college student there are much better loans out there. I would use Sallie Mae or Pilot Finance as a last resort because they have outrageous interest rates and loan origination fees. In my opinion they take advantage of flight students. Just my opinion though from having delt with Sallie Mae.
 
Anyone you would recommend, mward? I've found Key and Sallie Mae for pilot financing but that's about it.
 
From what I have seen for a loan solely for flight training, Key bank seems to have the best interest rates but they only work with a limited number of flight schools, more so than Sallie Mae or Pilot Finance. Personally I took out a student loan from Bank of America but it was considered a student loan and not a career training loan therefore I had a very decent interest rate and origination fee. There really are not an abundance of good flight loans available to flight students, but there are excellent ones for college students. Good luck finding one that is right for you.
 
I'd look into borrowing a bit more. Yeah, your origination fees are gonna be higher, but you have to look at which is better in the long run. A few more bucks on your per month bill for the loans or having to come up with a couple more thousand to finish.

I would MUCH prefer Key Bank since they have better interest rates, but my flight school has Sallie Mae or your own way. Now for MAPD, I'm looking into Key Bank. John, have you thought about getting your intructor ratings AND your commerical at ATP? That way you could just get the Key loan.
 
I used Sallie Mae and have no complaints. I have a great interest rate. I was told you can transfer the money from one approved school to another as long as all parties on the loan app are ok with it. Anytime I had a problem or concern there reps were very helpful.
 
I borrowed 15K though sallie may. They fund the school with 3 lump funds. If you want specifics, then just hit me up in a PM
 
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