aloft
New Member
...I'm right there with you both in terms of the though process. But, no loans equals no career.
Kinda a catch 22 for most, so what do ya do?
Pay as you go.
Takes longer, but having no training debt = priceless.
...I'm right there with you both in terms of the though process. But, no loans equals no career.
Kinda a catch 22 for most, so what do ya do?
I love how everyone looks at first year pay as the end all pay bracket. So you make 20k the first year, then 25 the second....it keeps going up doesn't it? You are looking at maybe 2 years of hardship, hardly seems like that much of a sacrifice (if you're single and live alone that is).
I think the point of the story was that it pretty much forces you to be single and live alone (or with your parents). If I remember correctly, most regionals have a FO cap - so say you're stuck in the right seat at Eagle for years - eventually you reach a point to where you're salary is stuck - which means you lose money (taking into account inflation).
Exactly. Never count on a quick upgrade or getting a decent line quickly either. I have been on reserve since upgrading last summer and have no hopes of getting a decent paying line anytime soon. I am not making much more than the FOs I fly with since I do not break guarantee that often. Actually some of them make more than I do! But I am getting that ever so precious PIC time
Makes it kind of hard to pay my giant loan off early as previously planned. Folks, take Champ's advice to heart. You never know what will happen and taking a giant loan is very risky.
Pay as you go and limit your debt as much as feasible.
...I'm right there with you both in terms of the though process. But, no loans equals no career.
Kinda a catch 22 for most, so what do ya do?
exactly. i could have not taken loans and then DEFINITELY not have the career and life of my choosing.
or
i could not take loans, and not do what i want to do with my life. but be modestly successful at some mindless job i have no interest in.
and its not shiny jets or "the dream"... its just a means to an end, and that end (choosing my own destiny if you will) is very important to me.
...and yes i know my loans are going to totally blow.
I unfortunately have to say i'm in the same boat as Champcar.. Took out a loan for $90k for flight school and expenses for DCA back in 05. finished in 1 year (i was in a hurry) instructed for a year.. and payments are starting soon at $1800 a month as a FO in a kingair 90.. i bring home. $1890 a month.. not looking to good at all, considering i dont live w/ the parents and have a car payment, credit card debt, rent, utilities, etc to pay and the the loan institution wont even discuss helping to reduce the interest rate or monthly payments at ALL!.
I'm sitting here kicking myself is the butt for doing it, but loving every minute of my career.. just trying to think of every possible way i can to not have to file bankruptcy at the age of 24.
My options were take out the loan and get to a regional at 22 or pay as I go and get to a regional at 25 or 26 IF I got a high paying job straight outta college. I'm happy with the decision I made
Did I read that right....an $1800 per month payment? That seems incredibly high, even for a 90K loan.
yea.. $1800 per month.. double digit interest rates since signing the loan have already caused the payback value to almost triple b/c of interest...
Is any career worth bankruptcy?
Tell me how you intend to pay a $50K loan with interest when your gross is $20K a year.
Ain't happening.
Besides, what is the rush? What's going on at the airlines right now? Furloughs. As in people losing jobs. Where are you going to get a job if people are laying people off?
Take your time, do it debt free, and hopefully the cycle will have turned around by the time you're ready.
Oh my God...
I'm a big proponent of facing the music but these loans are almost crushing. I know when I was in college, I just sorta signed up, got the loans, etc. and didn't really think about the long term payments. There really wasn't much you could do when it came to it - just get the loan and go to class.
I think some sort of student loan reform is needed. Maybe a "loan to value", so students have a maximum value of student loans they can receive based on the career they have chosen and starting wages for that job. For example, a student going to school as a CPA, average starting wage of $36k (a guess?) maybe a max loan amount of $750/month or something. It would be a ratio against gross income, say 1:4. Those loans would be guaranteed at a fixed interest rate, say 3%. Anything over and above the "loan to value" amount would be "at risk" of the creditor, in other words debt could be discharged in bankruptcy. Kinda like a first/second mortgage on a house.
It's unfortunate and extremely sad that the people just coming into the working world will be chained to their debt.
Oh my God...
I'm a big proponent of facing the music but these loans are almost crushing. I know when I was in college, I just sorta signed up, got the loans, etc. and didn't really think about the long term payments. There really wasn't much you could do when it came to it - just get the loan and go to class.
I think some sort of student loan reform is needed. Maybe a "loan to value", so students have a maximum value of student loans they can receive based on the career they have chosen and starting wages for that job. For example, a student going to school as a CPA, average starting wage of $36k (a guess?) maybe a max loan amount of $750/month or something. It would be a ratio against gross income, say 1:4. Those loans would be guaranteed at a fixed interest rate, say 3%. Anything over and above the "loan to value" amount would be "at risk" of the creditor, in other words debt could be discharged in bankruptcy. Kinda like a first/second mortgage on a house.
It's unfortunate and extremely sad that the people just coming into the working world will be chained to their debt.
There really needs to be a cap.Oh my God...
I'm a big proponent of facing the music but these loans are almost crushing. I know when I was in college, I just sorta signed up, got the loans, etc. and didn't really think about the long term payments. There really wasn't much you could do when it came to it - just get the loan and go to class.
I think some sort of student loan reform is needed. Maybe a "loan to value", so students have a maximum value of student loans they can receive based on the career they have chosen and starting wages for that job. For example, a student going to school as a CPA, average starting wage of $36k (a guess?) maybe a max loan amount of $750/month or something. It would be a ratio against gross income, say 1:4. Those loans would be guaranteed at a fixed interest rate, say 3%. Anything over and above the "loan to value" amount would be "at risk" of the creditor, in other words debt could be discharged in bankruptcy. Kinda like a first/second mortgage on a house.
Again though I have no one to blame but my self. It is what it is, but for some of you who think its not bad....it is.
It's unfortunate and extremely sad that the people just coming into the working world will be chained to their debt.
Like i said in my post bankruptcy is not a immediate option for student loans. Its a long, hard, and nearly impossible road.I unfortunately have to say i'm in the same boat as Champcar.. Took out a loan for $90k for flight school and expenses for DCA back in 05. finished in 1 year (i was in a hurry) instructed for a year.. and payments are starting soon at $1800 a month as a FO in a kingair 90.. i bring home. $1890 a month.. not looking to good at all, considering i dont live w/ the parents and have a car payment, credit card debt, rent, utilities, etc to pay and the the loan institution wont even discuss helping to reduce the interest rate or monthly payments at ALL!.
I'm sitting here kicking myself is the butt for doing it, but loving every minute of my career.. just trying to think of every possible way i can to not have to file bankruptcy at the age of 24.
I love how everyone looks at first year pay as the end all pay bracket. So you make 20k the first year, then 25 the second....it keeps going up doesn't it?
It is true that having so much debt is sad; my wife and I had $20k in debt and just finished paying it off. However, people also need to think about things before they jump into risky financial situations, and not just pass the blame onto other people. You idea is not a bad one but the more people are babied the worse off they will be.
Even at the higher pay, you'll be working with less than $2,300 to cover everything. That's your housing, your food, your car, your insurance, your clothes, your gas, everything.