To those thinking of getting out a big private loan

[TXaviator]

i think we're avoiding the real 800 pound elephant in the room....


...why and how does higher education cost so farking much, its this morally right, and what alternatives are there.


in my opinion, a person seeking education should not have to enslave themself....

but how to actually implement that notion...i have no idea.

 

[JoeBlow]

I don’t know if this has been brought up already, but you may want to look into if you are able to pay your monthly student loans based on a percentage of your gross wages. Many if not most student loans offer this option. You would send them a budget outline of what your monthly bills are and what you make. They would then calculate a percentage, say 10% of your gross monthly wages, which you would have to pay. If you gross $1,800 a month and your monthly student loans are the same, theoretically you can’t live. But, they will work with you so you can live and pay your bills. They can’t take your entire paycheck. The most important thing to do is communicate with your creditors instead of running away—that’s when you get into financial trouble.

 

[Sprint100]

I lean more towards agreeing with Champ because, usually, when these loans are applied for there is that "grass is greener on the other side" mentality. I put it on par with a getthereitis because you want to reach x destination aka the green grass and the loan is that express ticket. The majority of students don't think that after they reach that green grass they won't be able to pay according to the original terms. Throw responsibility out the window since these lenders like SLM prey on people's dreams of a better life, which can cloud the thoughts of some very responsible and rational people.

 

[Sprint100]

i think we're avoiding the real 800 pound elephant in the room....


...why and how does higher education cost so farking much, its this morally right, and what alternatives are there.


in my opinion, a person seeking education should not have to enslave themself....

but how to actually implement that notion...i have no idea.

:yeahthat::yeahthat::yeahthat::yeahthat:

 

[tonyw]

Throw responsibility out the window since these lenders like SLM prey on people's dreams of a better life, which can cloud the thoughts of some very responsible and rational people.

I don't think they're doing anything wrong.

I find it hard to blame the person doing the selling unless they use deceptive practices and don't tell people the facts.

With SLM, the facts are right there. They'll tell you what your monthly payment will be and it's up to you to decide whether or not you can make ends meet when you've got to pay.

 

[Sprint100]

With SLM, the facts are right there. They'll tell you what your monthly payment will be and it's up to you to decide whether or not you can make ends meet when you've got to pay.

I'm not denying the reps are straight up, but because of the situation people are more inclined to take it with no serious thought. I like FHA's cap of how much they'll guarantee based on monthly income and expenses. Personally I think SLM should be a little more responsible in giving out money. If I worked at SLM, why would I give you a loan that takes up over 50% of that occupations monthly net income when repayment starts(averaged out of course).
Honestly the same could be said about drugs, the facts are out there, but peoples' judgement gets clouded and they still do crack that first time and then it turns into an addiction.

 

[learflyer]

Captain pay pretty much puts a huge dent in those loans....especially if you're single

Don't be stupid.

 

[Champcar]

There is no risk.

.

And Champcar, I know you and I have gotten into pissing contests over things but I sympathize with you. I really do.

Those of you who are thinking of doing what he did may want to consider what he's dealing with now.

Besides, what's the rush?

Thanks man. It's the net, I forgot about it the next day.

I just really hope this will make someone think twice about the trigger they are about to pull.I'll be meeting with a financial adviser next week to nail down a game plan. I'm going to take care of this head first.

 

[planesiscool]

That's not bad, I've spent on average $1200/month on all those items the past 4 years out of college. Actually before I moved into my house, my monthly outflow was $<1050/month.

Now that I just bought a house, it's gone up quite a bit, but still reasonable IMO.

It can be done. Get a roommate, etc. if you need to. Short term sacrifice for a long term gain.

To me, that's a problem with the society/culture at large. I was not taught in school about debt, credit, loans and all of that. It was my dad who explained to me how debt worked and how I should do anything I can to avoid it. I think parents need to take the time to tell their kids...hey you need to think about taking out that much debt first.

 

[Italianaviator]

Talkl to the Riddle/FlightSafety Guys. One I know has $180 grand in debt from school the other close to $300 grand!!!!!anic:

Yeah I had 3 roomates in college going to Riddle, one had 250 Grand in debt, the other 200 Grand and another had 100 Grand in debt. Thankfully I have a dad who started a college savings fund when I was born. So all I have is 7000 in debt.

 

[KLB]

Are your loans consolidated down to one or two lenders? Have you deferred them or filed for economic hardship?

Thats one of the big reasons I didn't go to the regionals. I didn't make very much more starting out where I am now, but the extra 6 grand did help a little.

I pay about 2 grand a month in loans, car note, and rent. Plus I send a couple hundred bucks my little sister's (she's still in college) way to help with her kid.

I did what I had to do to survive the first year. Then my company gave half of the folks here a 4 grand raise because they were really hurting for pilots and were trying to attract more folks. I also stayed (still staying) TDY for the extra cash from per diem. We get 35 bucks a day and I try to use only 15 bucks for food. Continental breakfast is free....so that leaves me 7.50 for lunch and 7.50 for dinner.

After all of that, I still come out with atleast 500 bucks a month in savings. It would be more, but I really splurge (I need to cut down on that) on the weekends. The beginning of this career is all about survival. My advice would be to go where the money is... That may not be flying for a regional airline. I'd fly a kite if it payed well.

 

[Boris Badenov]

We've gone ahead and just pulled out $5000 out of one of our previous retirement accounts, and are more than willing to pay the 20% penalty, and the 10% when we file our taxes next year so that we can get ourselves out of some debt we've taken on over the past year.

A propos to nothing, but I'd say now is about the best time ever to take on as much debt as you possibly can. Double digit inflation is just around the corner. Pay the bank back in monopoly money.

 

[popaviator]

I think one way to make it in this industry when starting out is by being young, single, and frugal...........and not taking 80k plus in loans ................... live within your means

 

[cfii2007]

Good advice on this thread.....people really don't realize how much the interest kills you on a loan that large.

I actually didn't fly at all for little over a year, worked 2 full time jobs (non aviation related) and paid off my flying debt.

 

[Sprint100]

I think one way to make it in this industry when starting out is by being young, single, and frugal...........and not taking 80k plus in loans ................... live within your means

Either that or wait till your older and have positive stability with your family life/responsibilities and some money saved up.

 

[Trip7]

I could care less about how much the interest is. How ever much it is when Im done paying my loan off will be worth the price of getting in early. Going to school and training on the side was painful enough. Can't imagine going to work as well and training on the side. Then, with the cost of flight training, I betting almost your whole check is going into paying for flight training. You're still broke, with no seniority number or flight privileges. I'll rather take the loan, get in early, live frugally and pay of the loan as fast as possible to minimize interest. Forget that whole 10-15 year repayment thing.

Now if you're talking about career changers with established careers that make a good chunk of change, definitely pay as you go.

 

[Maximilian_Jenius]

...some good advice in this thread.

Been thinking about it all day. I'll easily admit to having "getthereitis." But, then I'm not a 20 yr. old kid. No, I'm (gasp) 31, 32 next Tuesday.

Anyone who is "old school" knows of me and my story.

I've wanted to be a pilot all my life, and it's the only thing I truly want to do. But, with the economy and the cost of training continuing to rise and salaries staying the same, I've lately seriously considered just quitting/giving up. Due to age and it mainly just being cost prohibative.

I make about $28-29k a year at my job. Seems alot, but with again the cost of gas, and inflation, I probably only really make like maybe $19k. Or at least it seems as of late.

I'd like to be doing something in avaiton by age 35, if not sooner, I'm currently in school finsihing up my degree.

Paying as you go seems lackluster, when I can have it today with a loan. I was going to apply for a loan for flight training next month, but might put it on hold after reading this thread, I'll have to talk to my mom, before I decide.

Quik Trip, a local gas station is hiring assistant managers starting out at $45k with $50-55k potential in 2-3 yrs. So, seriously thinking about quitting my current job, and maybe going there. Hope I don't get shot!

Barring that (should I not get hired) honestly, I have no idea how I could get a good paying job in this economy to be able to "pay as you go." So my options would be loan, or give up "the dream."

Lots of good advice in this thread, but paying as you go isn't right for everyone, simply because they may not have a job that affords them the ability to pay as you go. Just something to consider.

 

[Sprint100]

Max, you know I love ya bro. Give pay as you go a try. You may wind up loving the fact that you can get a job supporting that habit of flying I'd say give it a try or take up a position like an airport manager, fbo gm, etc. Don't knock it and I'm sure there are lots of older pilots on this board that got into the game older than 32. R2F did it

 

[Maximilian_Jenius]

Max, you know I love ya bro. Give pay as you go a try. You may wind up loving the fact that you can get a job supporting that habit of flying I'd say give it a try or take up a position like an airport manager, fbo gm, etc. Don't knock it and I'm sure there are lots of older pilots on this board that got into the game older than 32. R2F did it

Lol, airport manager? Me thinks one would have to have prior experience to fill that position!

Not sure my AS would cut it brah!

 

[Sprint100]

Lol, airport manager? Me thinks one would have to have prior experience to fill that position!

Not sure my AS would cut it brah!

Network brotha!!!!! I stopped by Supermarine (my old FBO gig) about a year ago and almost everyone I worked with was a manager or GM at some airport or aviation company. I could tell you that those knuckleheads had no formal education beyond high school.
Remember networking got me a job offer to fly Bill's Pilatus and I only had about 20 hours:laff: If I woulda had my IFR Bill would have paid for my commercial then I woulda been in there.