No Wachovia Loans for a while

R

rjordan85

Well-Known Member
I got a phone call from ATP today telling me that i should look elsewhere (SLM) for financing my training. Supposedly TERI Loans who holds the promisary note for the Wachovia Loans, went bankrupt. This throws a wrench in my plans. I dont have a co signer and SLM are some stingy bastards. I only got approved for $5,000 thru them (what the heck is that gonna do for me) where Wachovia approved me for $75,000. I talked to the guy at Wachovia and he said they should have their loans available again by mid-end of May. Does this mess up anyone elses plans? any recommendations to what i should do/other options? Thanks

Ryan
 
To be honest I just checked Wachovia's website and TERI's and nothing is said about going bankrupt. If they truly are, then I will defiantly be affected.
 
wow thanks for the info... i was just about to see if i can qualify for the loan.
by the way i'm lookin at attending arizona location hopefully befor they raise the price by 5 grand
 
Hmmm I love my wachovia loan.... Low ARP but that was due to my credit score... However with that I only have 13k through them and its every bit of 170 something a month.... I cant even imagine 75k which will be well over 500 a month in just one loan... Perhaps look else where. Lets face it, right now the industry is unstable and why spend 75k on it.... Perhaps look at other options and see what you can do... ATP is not the end of the world after all. There are many great options where youc an get everything you could at ATP for a lesser cost.... Hmm probably damn near half at the current price...
 
Left Seat said:
To be honest I just checked Wachovia's website and TERI's and nothing is said about going bankrupt. If they truly are, then I will defiantly be affected.
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It just happened yesterday. When i called the guy said they were in the middle of discussing the whole matter. Here is the number to Wachovia if you want to call. Maybe they'll have more info today. (877)689-0763
 
pipepatrol said:
Is my balance reduced to $0 if they are bankrupt?
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lol no.

Your loan is an asset which can be sold/awarded whatever to pay their creditors.

You will owe someone the money, although any change would likely be transparent to you.
 
ftyflyboy said:
How does a non-profit organization go bankrupt?
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No sarcasm tag, so I'm not sure if you're serious. They just can't make a profit - doesn't mean they can operate at a loss. They have bills to pay like anyone else.

pipepatrol said:
Is my balance reduced to $0 if they are bankrupt?
Click to expand...

No sarcasm tag here either. :)

Someone will buy up the debt. You'll start paying them - may be under a new name, but when you owe, someone is always willing to collect.

EDIT - Clocks beat me to it by about a minute...
 
rjordan85 said:
I got a phone call from ATP today telling me that i should look elsewhere (SLM) for financing my training. Supposedly TERI Loans who holds the promisary note for the Wachovia Loans, went bankrupt. This throws a wrench in my plans. I dont have a co signer and SLM are some stingy bastards. I only got approved for $5,000 thru them (what the heck is that gonna do for me) where Wachovia approved me for $75,000. I talked to the guy at Wachovia and he said they should have their loans available again by mid-end of May. Does this mess up anyone elses plans? any recommendations to what i should do/other options? Thanks

Ryan
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Sorry to hear about your issues. For what it's worth, the financing hurdle, in my opinion, is the hardest part of the ATP program. Shooting an ILS down to minimums has got nothing on the trials and tribulations of dealing with a provider like SLM. Just hang in there, stay focused on your final goal, and things will work out.

Remember, using SLM to finance 100% of the cost may not be the best way to approach it, it's just one of the more common methods. Everyone's finance situation is totally different. Out of the 15 or so guys I was at KRAL with, I don't think any of us had the same financing method. One ACPP'er even had a an airline pilot sponsor/donate, with some minor stipulations, the cost of his entire program. Keep in mind that ATP will still be there in a few months, so hold your course and continue to do your research on how to pay for the program. In the end, if it doesn't work out, there are a good number of other places to go train for a lot less money.
Just my two cents....
 
Clocks said:
lol no.

Your loan is an asset which can be sold/awarded whatever to pay their creditors.

You will owe someone the money, although any change would likely be transparent to you.
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That would have been nice. It would have been like winning the lottery, a really nice sized lottery.

Ive actually heard of a flight school going bankrupt and reducing all student balances to $0, it would be nice if the balance would also be reduced to $0 if the loan company goes bankrupt...
 
pipepatrol said:
That would have been nice. It would have been like winning the lottery, a really nice sized lottery.

Ive actually heard of a flight school going bankrupt and reducing all student balances to $0, it would be nice if the balance would also be reduced to $0 if the loan company goes bankrupt...
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Someone else still buys the debt. Your contract to pay is an asset which can be bought and sold. This is why debt is an insidious bee-yotch - someone you don't know owns your arse for x-months.

That's a very small part of this mortgage crisis, you know. Many investors bought in to companies which had financing backed by mortgages because everyone KNEW that you couldn't lose money on a house.

Until they did. And panic sets in....
 
ftyflyboy said:
How does a non-profit organization go bankrupt?
Click to expand...

The "for-profit" vs. "not-for-profit" gets a little sticky. The not-for-profit still has to make money, they just aren't in the primary business of making a profit for stockholders. If you check out some not-for-profits, you'll find that most of them DO make a profit, it just gets put back into the business rather than into owner's equity.

It's kind of weird, but one of the things business school students have a hard time with is that no matter what kind of business you're running, if you don't make a profit, you won't be running it for very long. Unless you're an airline or brokerage house that the government will prop up.....:rolleyes:
 
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