Sallie Mae not going to loan for aviation career training

juskl

juskl

Well-Known Member
Just got the word that Sallie Mae will no longer loan money for flight training. Actually I think they are getting out of any career training loans (sign of the economic times). Don't know of whom else is involved in flight training loans. Could mean tough times in the future for flight training.

Ous school got the letter from them a few days ago.
 
Re: Sallie Mae not going to loan for aviation career trainin

Does this include flight training as part of a 4-year degree?
If so, there are going to be a LOT of jobless CFIs on the street in a few months.
 
Re: Sallie Mae not going to loan for aviation career trainin

The lack of easy and cheap money for flight training will be a positive in many ways for the industry. It will also be a postive for the many people that spend $80k and then figure out that an airline career blows for them. It will be harder to get your ratings and your time, but it will weed out all but those with the strongest passion to fly for a living. This in turn will lead to more people with more invested and it may actually serve to drive the industry up.
 
Re: Sallie Mae not going to loan for aviation career trainin

You're right Waco. But it could suck for a lot of people in the short term.
 
Re: Sallie Mae not going to loan for aviation career trainin

I don't know about if your training is attached to an institution of higher learning. But the career side went kaput. And yes, this will spell trouble for alot of schools. I had one of those loans (still paying on it and will for about 7 more years).
 
Re: Sallie Mae not going to loan for aviation career trainin

WacoFan said:
The lack of easy and cheap money for flight training will be a positive in many ways for the industry. It will also be a postive for the many people that spend $80k and then figure out that an airline career blows for them. It will be harder to get your ratings and your time, but it will weed out all but those with the strongest passion to fly for a living. This in turn will lead to more people with more invested and it may actually serve to drive the industry up.
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I agree, I thought I would be the only one that liked the idea.
 
Re: Sallie Mae not going to loan for aviation career trainin

This, not user fees, is the kind of thing Velo was looking for to cut down the pilot supply. Does anyone know who other big lenders for flight training are, and how hard they have been hit?
 
Re: Sallie Mae not going to loan for aviation career trainin

PNC Bank is the only one I know loaning full amounts.
Wachovia a little
BofA got out - Now SLM is out I guess.
 
Re: Sallie Mae not going to loan for aviation career trainin

cool.. does this mean they are going to forget about the 10k I owe them for mine?? :D

I got my money from them and now I decided to not get loans again for training...
 
Re: Sallie Mae not going to loan for aviation career trainin

Is Pilot Finance still around? There website indicated they are, although they are very expensive. 12% interesting being the minimum.
 
Re: Sallie Mae not going to loan for aviation career trainin

Maurus said:
Is Pilot Finance still around? There website indicated they are, although they are very expensive. 12% interesting being the minimum.
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Yes, in fact my school has started using Pilot Finance for more financing. Their interest rates are definitely higher than Sallie Mae, but they're also much easier to get approved with.

When we got the letter about Sallie Mae shutting down their lending, in a way we were disappointed, but at the same time we didn't really care. In recent months, they were so difficult to get approved by, it was hardly worth the time to fill out an application. They would shoot down applicants with spectacular credit and cosigners. All the letter really did was make it official that they're out of the industry--it's been unofficial for months now.
 
Re: Sallie Mae not going to loan for aviation career trainin

jrh said:
Yes, in fact my school has started using Pilot Finance for more financing. Their interest rates are definitely higher than Sallie Mae, but they're also much easier to get approved with.

When we got the letter about Sallie Mae shutting down their lending, in a way we were disappointed, but at the same time we didn't really care. In recent months, they were so difficult to get approved by, it was hardly worth the time to fill out an application. They would shoot down applicants with spectacular credit and cosigners. All the letter really did was make it official that they're out of the industry--it's been unofficial for months now.
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Thats exactly what I was wondering right there. I figured at least for the last few months that they were probably not loaning much money for training anyway.
 
Re: Sallie Mae not going to loan for aviation career trainin

Well, not that it really mattered anyway, but that right there is the death knell to my aspirations to be an airline pilot! At least in terms of the financing options. The federal government is currently financing my education at a locked in rate of 4%.

Full steam ahead with the clinical psychology/nursing career. If any of you in the future want to talk about how you're nothing now because your whole life you only wanted to be a pilot, and now you can't.

My couch is open! :D
 
Re: Sallie Mae not going to loan for aviation career trainin

I think it will probably wind up being a good thing for "the profession", but I find the "I got mine, now let's pull up the drawbridge" attitude is almost as pernicious as the oversupply of puppymill strays. It's the reason, for example, that there's such a thing as a B-Scale, or an "RJ".
 
Re: Sallie Mae not going to loan for aviation career trainin

Boris Badenov said:
I think it will probably wind up being a good thing for "the profession", but I find the "I got mine, now let's pull up the drawbridge" attitude is almost as pernicious as the oversupply of puppymill strays. It's the reason, for example, that there's such a thing as a B-Scale, or an "RJ".
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Exactly. This is actually good news for us all. Sallie is one of the only, if not the only way for people to afford pro flight training without going to their bank. And they charged criminal rates in exchange for their perks. Now people will at least think twice about the price of admission to an already spiraling industry. On a side note, ATP flight school's only option was Sallie, it's going to be interesting to see what those guys come up with now.
 
Re: Sallie Mae not going to loan for aviation career trainin

How about a limit to how much you can borrow based on the payscale of the profession and job stability. Wanna be a pilot? You can borrow 30k max. Wanna be a lawyer? 300k. :laff:
 
Re: Sallie Mae not going to loan for aviation career trainin

Well, this doesn't really affect me in a negative way at all (I pay cash for all my training). It just means when I'm all said and done I'll have less competition from new pilots. Hell, given time, it might help drive the salary upwards when less new pilots are available.

Also, in a positive light, it makes it more likely that people will get a bachelors degree and relative experience for that degree and then pay cash for their ratings. Gives them a really good fall back without the financial burden of paying loans.
 
Re: Sallie Mae not going to loan for aviation career trainin

What this does mean is that in the future, careers will be less accessible to the children of working class families. It is interesting that as we enter the era of Obama the cycle of poverty should be reinforced at the same time government giveaways accelerate exponentially. Almost as if the plan is to keep people dependent on the government; particularly the poor and undereducated so as to maintain a voting block of dependency.
 
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