Sallie Mae not going to loan for aviation career training

Re: Sallie Mae not going to loan for aviation career trainin

Socal321 said:
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.
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ATP flight schools only option is not SLM. There may have been a time when SLM was the only lender, but not since I have been around them. They have several options right now. Though the best option is mired in conspiracy, PNC bank is lending full amounts at 3-6% interest.
 
Re: Sallie Mae not going to loan for aviation career trainin

Maximillian_Jenius said:
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
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I agree with Waco - and how is this a death knell? Pay as you go is still a viable alternative. Work and fly, it's what I've been doing for several years. Granted, I'm not looking to make this into a career, but if I wanted to - I could do it all the same.
 
Re: Sallie Mae not going to loan for aviation career trainin

Murdoughnut said:
I agree with Waco - and how is this a death knell? Pay as you go is still a viable alternative. Work and fly, it's what I've been doing for several years. Granted, I'm not looking to make this into a career, but if I wanted to - I could do it all the same.
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Pay as you go? You mean to say instant gratification isn't the only way to get into flight training? Wow, what a concept!

Seriously, I think this will be good for people financially. I can't even imagine having a $800-$1,000/mo loan to pay off right now... How guys in the regionals do it I will never know. It is completely impossible on paper.
 
Re: Sallie Mae not going to loan for aviation career trainin

Parasite said:
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.
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You're missing the point. There is the reason why you're the only one that will be training.....
 
Re: Sallie Mae not going to loan for aviation career trainin

The decision seems incisive enough for me. Common sense would dictate not loaning money to an "at risk" industry. It's not as if the transition from training to a job is as it was a few years ago. Appears solid to to me to not make a significant loan when the odds of repaying are low.

I wonder what percentage of loans now are outstanding with Sallie Mae after the last furlough? Perhaps those numbers were a decision to withhold loans?
 
Re: Sallie Mae not going to loan for aviation career trainin

Maximillian_Jenius said:
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
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Look on the upside, man. The path will be a little less clear, but in time it'll work itself out. There's an old saying: "The time to complete a job grows to fill the space allotted." In other words, unlimited time means unlimited requirements. I really believe the same applies to flight training.

If the funding dries up, there's just no reason for flight schools to be so damned expensive. I think that all the unlimited funding meant unlimited profits for a few flight school operators out there.

It'll balance in time. In the meantime, stick to that nursing thing. Somebody told me that a nurse aenesthetist makes serious bank for a fairly small amount of work hours.
 
Re: Sallie Mae not going to loan for aviation career trainin

Anytime you ca weed out the instant-gratification crowd the better. These are the same people that help drive down wages at every level of flying. If you simply weed out the people that only do it because it is easy and quick, fewer people are left to take the sucky jobs. Pay as you go is a viable option Max - don't give up if you want to fly.
 
Re: Sallie Mae not going to loan for aviation career trainin

I think it is kind of funny that some people actually think we are going to "weed out" the instant gratification people by Sallie Mae stopping the aviation loans. There are so many already certificated guys that went that way that by the time the airlines start hiring again and snatch all those guys up, the economy will be booming again and all these banks will be right back in the thick of things lending again. Sallie Mae stopped loaning to our 141 program last year. I know that had they not stopped, I'd easily be making an extra $800-$1000 per month as a CFI. So thanks for cheering this on.
 
Re: Sallie Mae not going to loan for aviation career trainin

Goldmember said:
I think it is kind of funny that some people actually think we are going to "weed out" the instant gratification people by Sallie Mae stopping the aviation loans. There are so many already certificated guys that went that way that by the time the airlines start hiring again and snatch all those guys up, the economy will be booming again and all these banks will be right back in the thick of things lending again. Sallie Mae stopped loaning to our 141 program last year. I know that had they not stopped, I'd easily be making an extra $800-$1000 per month as a CFI. So thanks for cheering this on.
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I disagree - I don't think banks will ever dish out this much money for career training again. In the future, I think students will be able to pull down $10k-$20k to supplement their training, but the days of $100k loans for unskilled borrowers are over. Sucks that it's affecting your pay, but I'd rather it do that than continue to drag down this economy.
 
Re: Sallie Mae not going to loan for aviation career trainin

Good, for the airline industry, very bad for the flight training industry. There needs to be a good balance. It will hurt the industry if pilots cannot build time and experience as a CFI.
 
Re: Sallie Mae not going to loan for aviation career trainin

I suspect that someone will fill in and start doing career training loans to fill in the gap. Nature abhors a vacuum, and so does the market. Someone mentioned a cap on the loan amounts for the pilots, and that's not a bad idea in my book.

I would also suspect that ATP's higher-ups have toyed with the idea of bringing in their own in-house financing, which could be done with the right business plan and underwriting agency. A number of industries have done this with great success. This might be what gets that done.
 
Re: Sallie Mae not going to loan for aviation career trainin

MFT1Air said:
The decision seems incisive enough for me. Common sense would dictate not loaning money to an "at risk" industry. It's not as if the transition from training to a job is as it was a few years ago. Appears solid to to me to not make a significant loan when the odds of repaying are low.

I wonder what percentage of loans now are outstanding with Sallie Mae after the last furlough? Perhaps those numbers were a decision to withhold loans?
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I know quite a few guys who have SLM loans who are currently working for a regional who have called SLM to ask for extensions on beginning payment. That alone probably worries them.
 
Re: Sallie Mae not going to loan for aviation career trainin

I'mnot cheering it on as a slam to flight instructors at all. I am simply saying that there are more sides to this coin. Overall, does anyone think it makes sense for lending institutions to loan $80-$100k for a $20k per year job with a career cap out in the low to mid $100's? How many posts have been here bemoaning the fact that people are in such deep debt for a job that pays so little? When ones career can ride on the price of a global commodity that is in the control of people who hate us does anyone think it makes sense to go that deeply in the hole to start? More supply than demand in the ranks of pilots, a declining industry and payscales, and volitility to boot - would YOU loan someone $80k to do this? Sanity in lending is not a bad thing. Sanity in career expectations are also not a bad thing. Sorry that flight instructors feel the pinch, and sorry that it affects your income, but if your income is being generated by loans that don't make sense just because someone things jets are cool, only to have the taxpayers bear the brunt of the cost someday, well - someone has to lose. Easy, low interest loans are not a birth-right. Those who still want to fly will find a way - they always have.
 
Re: Sallie Mae not going to loan for aviation career trainin

Excellent.

Seems like a smart decision to me. Sure, it'll suck for those who can't get a loan. . .but that'll force them to be more responsible with their financial dealings.

It'll certainly make more 18 to 20 year olds think like adults and not children about money.

I will say that I have called SLM once in the two years I've had a loan with them. I needed to move my payment due date every month two days. From the 15th to the 17th, easy as pie. Very helpful.
 
Re: Sallie Mae not going to loan for aviation career trainin

Murdoughnut said:
I disagree - I don't think banks will ever dish out this much money for career training again. In the future, I think students will be able to pull down $10k-$20k to supplement their training, but the days of $100k loans for unskilled borrowers are over. Sucks that it's affecting your pay, but I'd rather it do that than continue to drag down this economy.
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I must be on alot of ignore lists lol. PNC bank is loaning full amounts to virtually anyone right now at 3-6% interest.
 
Re: Sallie Mae not going to loan for aviation career trainin

v1valarob said:
I know quite a few guys who have SLM loans who are currently working for a regional who have called SLM to ask for extensions on beginning payment. That alone probably worries them.
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I was thinking about this angle as well. That, and it's possible that many have defaulted on the loans altogether. Let's face it, to pay back that kind of loan as a regional F/O (without a SO who makes enough to support you) is pretty tough.
 
Re: Sallie Mae not going to loan for aviation career trainin

ladder360 said:
I was thinking about this angle as well. That, and it's possible that many have defaulted on the loans altogether. Let's face it, to pay back that kind of loan as a regional F/O (without a SO who makes enough to support you) is pretty tough.
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One FO was telling me about his SLM bill, crashpad bill and whatever else. Basically if he only makes guarantee, he is only +$100 for the whole month. At this airline, it can be difficult to make more than guarantee sometimes too.
 
Re: Sallie Mae not going to loan for aviation career trainin

surreal1221 said:
Excellent.

Seems like a smart decision to me. Sure, it'll suck for those who can't get a loan. . .but that'll force them to be more responsible with their financial dealings.

It'll certainly make more 18 to 20 year olds think like adults and not children about money.

I will say that I have called SLM once in the two years I've had a loan with them. I needed to move my payment due date every month two days. From the 15th to the 17th, easy as pie. Very helpful.
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Says the 24 year old with all of his flight training done. How did you pay?


I'm going to go out on a limb and say that this is a bad thing, not because how it will "weed anyone out" because it won't. Those people will find a way. I know I did, I didn't have SLM loans. No, its a bad thing because if SLM loans are going bye bye, plenty more jobs are going to go bye bye because the economy's ed. Good luck. You'll need it out there.
 
Re: Sallie Mae not going to loan for aviation career trainin

wrxpilot said:
Pay as you go? You mean to say instant gratification isn't the only way to get into flight training? Wow, what a concept!

Seriously, I think this will be good for people financially. I can't even imagine having a $800-$1,000/mo loan to pay off right now... How guys in the regionals do it I will never know. It is completely impossible on paper.
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Yes, these banks taking advantage of students' dreams is on par with the mortgage meltdown considering how they loaned out huge sums of money without much consideration to payback.
 
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