Sooo...what's your plan to pay back for the 90-day program??

Re: Sooo...what's your plan to pay back for the 90-day progr

insidious said:
paying it over lots of years is what makes the interest 100 grand. if you pay it off in 5 years, you pay jack on interest. sell everything you own and work your ass off in three places and it will be worth it.
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If you can pay back $60K in 5 years (12K per year, or $1000 a month - we're not even talking interest yet) then why not just pay cash and skip having to shell out that interest? The cost of buying the money is STILL steep. This is what I don't understand, because it's DAMN HARD to do that on $1600-1700 a month salary. It's not like the interest is tax deductible. If you've already got the money in place, or a significant portion, why borrow it?
 
Re: Sooo...what's your plan to pay back for the 90-day progr

Its all a question of tax benefits, what you are earning on money you have (or for many here, don't have), and what you are paying to borrow. When money is cheap to borrow, you borrow, especially if it has tax benefits. When money is not cheap to borrow, and you have cash in hand, you pay cash.

The longer you stretch our your repayment term, the more interest you pay.

Even if you have $40k burning a hole in your pocket, and you go car shopping and get offered 1% financing on your new car for $40k, you'd be a fool to turn down that financing, even if it only meant keeping the $40k you've got in a 4.5% savings account.

The problem in this industry, is that most people are paying 9% to 13% for their student loans, which kills the equation. If you could pay that back in 5 years, well obviously you'd save a significant amount of interest.

This is all simple finance math folks :)
 
Re: Sooo...what's your plan to pay back for the 90-day progr

Remember this as well, if you get hired at a fast moving regional (example, Republic Airways) and you upgrade to captain quickly (my buddy just got awarded captain there in 13 months) you will be making a handsome salary that you can pay the debt down rather quickly. When I left there, I was on 4th year captain pay and pulling down about 75 grand.

Food for thought....
 
Re: Sooo...what's your plan to pay back for the 90-day progr

ATLTRACON said:
Can anybody tell me whether there is an early payment penalty on the SLP/Wachovia loans?
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My Wachovia loan has no prepayment penalty. If you are cosigning, Wachovia may tell you over the phone that the cosigner may be released after four years of on-time payments, but neither the promissory note nor the disclosure statement mentions anything about release of the cosigner.
 
Re: Sooo...what's your plan to pay back for the 90-day progr

I am trying to educate a friend of mine against going to ATP. I am going to have to show him this thread.

I do have a question. My buddy has about $10,000 saved up. So my recommendation was to do his flight training at a local FBO and finance the other $25,000. Make min payments as FO, and then start paying it off ASAP once he makes captain at a regional. My question is how much does a $63,000 loan cost in interest. Say it was a 10 or 15 year (or whatever is standard for expensive flight training loan). How much more interest would he be paying by going to ATP. How much total (my rough estimate was well over $100,000 to go to ATP once you include interest).
Any help is appreciated.
 
Re: Sooo...what's your plan to pay back for the 90-day progr

I am looking for real world examples.

Anyone can make a flight training budget ($85/hr * 250 hours = $21,250 dollars worth of aircraft...
But my experience is that budgets never accurately predict costs. I have no idea about flight training loans. My numbers on that other post were a WAG. I have never taken out a loan (nor do I even plan to) until I buy my first house.

So what is a realistic interest rate?
8%, 10%, 12%, 14%, I don't know
What happens to the interest if you only make minimum payments for the first 2-3 years, and then start paying off. Can you pay it off early? How does that decrease the interest accrued.

Like I said, I have never taken out a loan, thus I really don't know how interest works. All I want to do is give the best advice I can to my buddy. My advice in principle is that ATP would cost way too much especially after considering interest. All I am asking for is some real world numbers and real life examples.

Isn't the whole purpose of jetcareers to pay it forward?? I am trying to pay it forward to my friend by giving him the best advice I can. I am asking for your help so I can advice him as best as I can. That's all.
Any help would be appreciated.
 
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