Sallie Mae Career Training Loan

BCTAv8r

Well-Known Member
Applied, but didn't get accepted unless I added a cosigner. Parents agree to cosign but want details beforehand. So I call them and ask a few questions but don't really get any useful info.

I asked them what the interest rate would be and they told me I'd know only after I got the loan. Ok, so after I'm committed to the loan, I find out how much I'm actually paying them? Doesn't sound very good.

Asked if the money could be sent to me, but got told that the money is sent to the school. Asked what happens if school closes, and they said that insurance covers the full amount. Question though, if insurance covers it, why is it that I hear of people losing thousand of dollars because they have money in account with a school and the school closes? Where has this insurance been?

I don't like it how they seem to be hiding info from me so far. Will probably go to my bank instead if I can get a decent interest rate.

Any suggestions besides telling me not to get a loan? I know the "train as you go" route is optimal, but the way it is going right now, it is either pay the bills or flight train.
 

88MPH

Addicted voyeur
I asked them what the interest rate would be and they told me I'd know only after I got the loan. Ok, so after I'm committed to the loan, I find out how much I'm actually paying them? Doesn't sound very good.
No worries there. What happens, is you get a cosigner, get approved, and they send you the final documents via PDF. That has your interest rate on there. However, you are NOT locked into anything until you sign and return those PDFs, so if you no likey the interest rates, you can tell them to put their PDFs wherever you like.

I don't like it how they seem to be hiding info from me so far. Will probably go to my bank instead if I can get a decent interest rate.
It may just be the particular CSR you're dealing with. May not be. I haven't had any real problems with SLM in 4 years, other than not winning the 25K sweepstakes yet. However, I'd say, if you can, go with the bank. They're local, and may give you better rate. Might even take collateral in the form of savings acct or auto/boat/plane/limb/other, and that might get a little bit lower rate as well.

Any suggestions besides telling me not to get a loan? I know the "train as you go" route is optimal, but the way it is going right now, it is either pay the bills or flight train.
I never understood how people did this unless (1) They are super rich or super funded by family/generous employer, or (2) they take student loans and "pay as you train as you go."
 

SeanD

Well-Known Member
Try your bank first. You may have an easier time and may not need a cosigner. Sallie Mae manages the debt, not the loan. I had a plus loan through them which followed me or my parents around for a long time, even after the loan was paid off.
 

BCTAv8r

Well-Known Member
Thanks 88MPH and SeanD. In regards to needing a cosigner, I have never made any large purchases with credit so I don't really have much credibility when it comes to that. The most expensive item I own is a Civic which I paid cash for. I will try the bank tomorrow though before I give Sallie Mae any further thought.

And 88MPH, I don't know how people do it either. It was easier when my parents were paying for everything, but now that I took up a lot of the bills they used to pay for, and adding the fact that I also try to help them out with a couple hundred bucks each month, I'm having trouble doing one lesson a week.

Hoping to take this loan and do it all as soon as possible. Then I'll "settle" in a CFI position for a decent while and build time/experience.
 

Maximilian_Jenius

Super User
...since when did local banks or credit unions start doing signature/alternative loans???

And, for what amounts?

$25k, $45k, $55k, $150k???

My understanding was that local banks and credit unions only did alternative/career, private loans, signature loans for like maybe $25-30k tops!
 

BCTAv8r

Well-Known Member
...since when did local banks or credit unions start doing signature/alternative loans???

And, for what amounts?

$25k, $45k, $55k, $150k???

My understanding was that local banks and credit unions only did alternative/career, private loans, signature loans for like maybe $25-30k tops!
I'm only asking for $20,000 anyways so it shouldn't be a problem.
 

jima7011

The Fire Chief
I never understood how people did this unless (1) They are super rich or super funded by family/generous employer, or (2) they take student loans and "pay as you train as you go."
I worked.....saved....when I had enough saved I got a rating--

So far it's working out pretty good...though very slow--
 

Berkut

Well-Known Member
Asked if the money could be sent to me, but got told that the money is sent to the school.
I didn't know this. I often see people say they took out an extra few thousand for living and miscellaneous expenses, but how does that work if the money goes to the school? Do you have to get the school to give you your money after SLM gives it to them?
 

thepedroid

Well-Known Member
Applied, but didn't get accepted unless I added a cosigner.
I am hoping to get a loan for everything and am considering SLM as well. When you applied, would you say you fell under bad credit, good credit, or excellent credit (like over 750)? The reason I ask is because everyone I know thinks I am crazy and I can't find a cosigner. I have close to excellent credit but with the way the country is going I'm afraid I'll need more.
 

CoffeeIcePapers

Well-Hung Member
You really need to think long and hard about this. It may be better for everyone involved if you just pay as you go. No one will be hiring for a year, at least. You will be stuck with a $500+/month payment, with the best job you can get paying about $1500 a month.
 

RPJ

Well-Known Member
Try getting a TERI loan. The money will be sent directly to the borrower and the qualifications to get the loan are slightly easier than SLM. Most of the time alternative loans are not at a fixed interest rate, including SLM's.
 

jtrain609

Anarcho-Bidenist
I ended up netting about $1,100 last month, how in the world do you guys expect to pay back a loan on a salary like that?
 

thepedroid

Well-Known Member
I was thinking of CFI'ing for a few years part time while I keep my day job. No since in rushing into the regionals(especially since you can't! they aren't hiring;))

I expect to take about 12-18 months (maybe longer) to get all my ratings. By the time I plan on getting to a regional, my SO should be sitting pretty with her law degree (and I should be close to finishing my BA).
 

EDUC8-or

Well-Known Member
I would take out as little as possible, I just got that monkey off my back. I took out 25 grand and was paying just over 300 a month, remember the interest rates are adjustable. I had excellent credit and had some of the lowest rates available.

300 doesn't sound like much, but when you're a broke FO it was tough. I'm not sure we can still count on the days of the quick upgrade any more, I'm hoping the industry turns around but you never know.
 

N826AW

Snooki's Baby Daddy
I didn't know this. I often see people say they took out an extra few thousand for living and miscellaneous expenses, but how does that work if the money goes to the school? Do you have to get the school to give you your money after SLM gives it to them?
Yes once the bank funds the loan, the school will cut a check to the student for the extra money.

I am hoping to get a loan for everything and am considering SLM as well. When you applied, would you say you fell under bad credit, good credit, or excellent credit (like over 750)? The reason I ask is because everyone I know thinks I am crazy and I can't find a cosigner. I have close to excellent credit but with the way the country is going I'm afraid I'll need more.
It's not just about score. Most banks want to see you've handled an amount of credit similar to what you are trying to borrow. i.e. auto loans, mortgage, credit cards, etc.
 

wrxpilot

New Member
I never understood how people did this unless (1) They are super rich or super funded by family/generous employer, or (2) they take student loans and "pay as you train as you go."
Regarding the pay as you go route - I'm a strong advocate of this if it's possible. I did it, but I had a pretty good job paying around $50-60k/yr and low overhead. Flight training was also cheaper when I did it (starting in 2004), which helped (but it's not that much more expensive now). It also took me 3 yrs to go from student pilot to CSEL/CMEL/CFI/CFII. I'm glad I took my time though. I was able to experience much more than the typical 9 month person.

I can't stress enough how important it is to have a low overhead when you do this. I sold my motorcycle, lived in a very cheap house with a roommate, had no cable, and didn't buy frivolous stuff. I still went out and had fun every once in awhile, but really focused on living cheap. Even though I still had some expenses (student loans from college, car payment, etc.), I was able to make it work.

I also flew the cheapest POS planes available, and was always well prepared for lessons. In fact, my instructors pretty much never had to give me ground lessons. No matter how many times I tell students how important this is to saving money, most hardly take it seriously for whatever reason. Being prepared will save you A LOT of money. For the instrument rating, get MSFS and a yoke. Fly the crap out of it and you'll save thousands of dollars (yes, thousands!!), plus you'll be much sharper than the average instrument pilot.

If you're not making a decent salary, then it will be challenging. The easiest way to check the practicality of this method is to create a budget in microsoft excel and see what you have left over every month after expenses.
 

88MPH

Addicted voyeur
Regarding the pay as you go route - I'm a strong advocate of this if it's possible. I did it, but I had a pretty good job paying around $50-60k/yr and low overhead. Flight training was also cheaper when I did it (starting in 2004), which helped (but it's not that much more expensive now). It also took me 3 yrs to go from student pilot to CSEL/CMEL/CFI/CFII. I'm glad I took my time though. I was able to experience much more than the typical 9 month person.

I can't stress enough how important it is to have a low overhead when you do this. I sold my motorcycle, lived in a very cheap house with a roommate, had no cable, and didn't buy frivolous stuff. I still went out and had fun every once in awhile, but really focused on living cheap. Even though I still had some expenses (student loans from college, car payment, etc.), I was able to make it work.

I also flew the cheapest POS planes available, and was always well prepared for lessons. In fact, my instructors pretty much never had to give me ground lessons. No matter how many times I tell students how important this is to saving money, most hardly take it seriously for whatever reason. Being prepared will save you A LOT of money. For the instrument rating, get MSFS and a yoke. Fly the crap out of it and you'll save thousands of dollars (yes, thousands!!), plus you'll be much sharper than the average instrument pilot.

If you're not making a decent salary, then it will be challenging. The easiest way to check the practicality of this method is to create a budget in microsoft excel and see what you have left over every month after expenses.
Oh yeah, I did all that. I LOVE excel! I just had a crap paycheck, and had to take a loan. I was just saying that you had to have your 50-60K to be able to pay as you go. That's all.
 
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