Champcar
Well-Known Member
These loans hit you hard, they turn a good paying job into not being able to pay the bills.
Sallie Mae Career Training Loan
- Thread starter BCTAv8r
- Start date
Just recently got a loan through SLM with a 5% interest rate. They cut your school a check and then the school cuts you a check for you living expenses if you had those figured in as well. You don't have to agree to anything until all the paperwork is in front of you with the details. They can't tell you the rates until after you apply because those rates are based on your and your co-signer credit worthiness and will fluctuate based on that. $20K is not the most SLM will let you borrow, I know because my amount is much higher then that...
anic:
anic:
Matt13C
Well-Known Member
Just recently got a loan through SLM with a 5% interest rate. They cut your school a check and then the school cuts you a check for you living expenses if you had those figured in as well. You don't have to agree to anything until all the paperwork is in front of you with the details. They can't tell you the rates until after you apply because those rates are based on your and your co-signer credit worthiness and will fluctuate based on that. $20K is not the most SLM will let you borrow, I know because my amount is much higher then that...
Do they take into account current debt/income?
I have been considering taking a loan out but was told that was a huge factor in their decision. I have great credit but with no job currently the debt to income ratio is all skewed.
Michael95U
Well-Known Member
I get questions all of the time from students who apply with SLM and plan to attend CPS. Here are some comments:
-I have noticed that about 95% of applicants require a co-signer. Currently, SLM is the is only company providing UNSECURED loans for training/education. There is a lot of risk in it for them, hence the requirement for a co-signer (or multiple co-signers) and sometimes a pretty steep interest rate.
-The credit score is far down the list as far as how SLM makes a decision. What is more important to them these days is your debt/income ratio, your credit history on large purchases, and the potential income once you complete your training.
-If you are having problems with a particular CSR, ask for a different one. If you are getting frustrated, ask for the supervisor. Work your way up the chain of command there. They can me VERY frustrating to work with, but don't get discouraged. Your experience isn't unique. Having to deal with them on an almost daily basis has led to extra stress in my life. :bandit:
-They ARE trying to improve theie customer service. I speak with the SLM rep in my area at least once a month. In fact, he was here the other day. One thing that they are trying to do is change to an all electronic system so we don't have to fax things back and forth. Hopefully it will streamline things a bit.
Just my two cents.
Michael
-I have noticed that about 95% of applicants require a co-signer. Currently, SLM is the is only company providing UNSECURED loans for training/education. There is a lot of risk in it for them, hence the requirement for a co-signer (or multiple co-signers) and sometimes a pretty steep interest rate.
-The credit score is far down the list as far as how SLM makes a decision. What is more important to them these days is your debt/income ratio, your credit history on large purchases, and the potential income once you complete your training.
-If you are having problems with a particular CSR, ask for a different one. If you are getting frustrated, ask for the supervisor. Work your way up the chain of command there. They can me VERY frustrating to work with, but don't get discouraged. Your experience isn't unique
. Having to deal with them on an almost daily basis has led to extra stress in my life. :bandit:-They ARE trying to improve theie customer service. I speak with the SLM rep in my area at least once a month. In fact, he was here the other day. One thing that they are trying to do is change to an all electronic system so we don't have to fax things back and forth. Hopefully it will streamline things a bit.
Just my two cents.
Michael
DenverPilot8
Well-Known Member
If they look at your debt to equity ratio how do you figure they can justify $600 per month payments (if you went through a career program) when your literally making about $1200 per month as an FO? I guess they assume that since you have Co-signers they would get their money somehow. But with credit and loans pretty tight these days I wonder if it will get much harder to get these loans.
As a flight school arn't you pretty much dependent on SLM to finance the students trainig? I suppose there is always saved money or money given.(by parents or family).
As a flight school arn't you pretty much dependent on SLM to finance the students trainig? I suppose there is always saved money or money given.(by parents or family).
meyers9163
Well-Known Member
You not flying at all? 1100?
I apply for a $5,000 from Sallie Mae last week for my CFI training. Unfortunately i can not pay as i go. So i got approved with a co-signer , 6% interest rate and they added another $400 one time fee. I didnt care because i needed the money so bad, to finish up.
Everything it was ok, i flew twice and 2 days later they decided to cancel my loan because i am not american citizen. So i ended up paying $600 from my pocket for the 2 flights and im almost ready to give up flying because of the stupid money. Thats life!!!!!
Everything it was ok, i flew twice and 2 days later they decided to cancel my loan because i am not american citizen. So i ended up paying $600 from my pocket for the 2 flights and im almost ready to give up flying because of the stupid money. Thats life!!!!!
wrxpilot
New Member
$5000 for CFI training??? Damn!
Maximilian_Jenius
Super User
RPJ
Well-Known Member
They did file for Ch 11 but they are still a fully functional lender. Chapter 11 does not always mean a company goes out of biz for good, they just need protection from their debts for a certain time period to get "back on their feet", then exit BK.
On another note, Max how is flight training coming along man?
Matt13C
Well-Known Member
I get questions all of the time from students who apply with SLM and plan to attend CPS. Here are some comments:
-I have noticed that about 95% of applicants require a co-signer. Currently, SLM is the is only company providing UNSECURED loans for training/education. There is a lot of risk in it for them, hence the requirement for a co-signer (or multiple co-signers) and sometimes a pretty steep interest rate.
-The credit score is far down the list as far as how SLM makes a decision. What is more important to them these days is your debt/income ratio, your credit history on large purchases, and the potential income once you complete your training.
-If you are having problems with a particular CSR, ask for a different one. If you are getting frustrated, ask for the supervisor. Work your way up the chain of command there. They can me VERY frustrating to work with, but don't get discouraged. Your experience isn't unique
-They ARE trying to improve theie customer service. I speak with the SLM rep in my area at least once a month. In fact, he was here the other day. One thing that they are trying to do is change to an all electronic system so we don't have to fax things back and forth. Hopefully it will streamline things a bit.
Just my two cents.
Michael
Thanks for your .02. I think it is ridiculous that career training is not treated equally under the eyes of SLM. If a person wants to go to a University or to a trade school they should both be eligible for the same type of loans. None of this secured vs unsecured and fixed rate vs variable. We need pilots, mechanics and plumbers just as much as we need a lawyer and a social worker, maybe more so.
RPJ
Well-Known Member
Your right, they are not at the moment. I should of clicked "apply now" then just reading press releases damn it :banghead::buck:
Its $5000 for both CFI and CFII. Unfortunately i dont know anybody to sign me off in 4-5 hours. They are all into money. Here in New York we pay about $150 for the 172 and about $55 for instruction. Crazy but true!!!!!!!!
jwp_145
GhostRider in the Sky
WRONG. They are not going to sign you off if you don't meet the requirements, can't teach for crap, or they think you might bust. That is not being "into money". That is doing a thorough job.
Citizen or permanent resident? I'm a resident but not yet a Citizen. I think you meant resident though. Since when is being a Citizen a requirement to get a loan?
Maximilian_Jenius
Super User
moxiepilot
Well-Known Member
My $.02 is to go with the local bank or credit union. First - you get the money. That is paramout in my experience. It's your money, you should control it; not the institution.
Secondly, the interest rates will be comparable and not a variable rate. Imagine buying a house with variable rate interest. Only works well if you're going to pay off fairly quickly or with a balloon payment at the end. What I'm trying to say is that you can get stuck with payments larger than you can make.
Third, if you decide to change institutions to train at, you have control of your money. It's a huge hassle and a long process which isn't easy to go somewhere else when using TERI, SLM, Key bank and others.
Secondly, the interest rates will be comparable and not a variable rate. Imagine buying a house with variable rate interest. Only works well if you're going to pay off fairly quickly or with a balloon payment at the end. What I'm trying to say is that you can get stuck with payments larger than you can make.
Third, if you decide to change institutions to train at, you have control of your money. It's a huge hassle and a long process which isn't easy to go somewhere else when using TERI, SLM, Key bank and others.
jima7011
The Fire Chief
Join the military--
Congress just approved a war funding bill that will increase GI Bill bennie's to $90,000. (!!)
Get your citizenship, job training AND money for flight school--all in one shot--serve 1 tour and get it done--
When I got out of the military GI Bennies were only $12,000 (though back then 12k bought a lot of school).
Congress just approved a war funding bill that will increase GI Bill bennie's to $90,000. (!!)
Get your citizenship, job training AND money for flight school--all in one shot--serve 1 tour and get it done--
When I got out of the military GI Bennies were only $12,000 (though back then 12k bought a lot of school).
wrxpilot
New Member
Nobody knows how to "teach for crap" until they actually do it for awhile. Actually caring about your students makes a huge difference, and will significantly cut down on time wasted for the new CFI.
There are a lot of places that will rip you off with ridiculous stage checks and drawn out flights. I'm all for stage checks during the PPL and IA training. After that, there should just be one at the end. Having multiple stage checks for a comm and/or CFI student is not that productive.
To the OP - just get your CFI for now. You will be plenty busy with that. Teach some primary students for awhile, figure out how to teach people how to fly an airplane, then get your -II. You'll probably get a very good break from your employer for the -II (they'll probably pay for it), and after you've been teaching for a couple hundred hrs, the -II is an easy checkride.
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