Financing training

[Lazy8]

Well, I was going to let it go, and believe me when I say I am not trying to sound like sour grapes; A 40 year old with poor credit trying to borrow money so he can fly once a month sounds, irresponsible as hell.

I agree that it doesn't sound good when a 40 year old gets denied a training loan for bad credit; however, I never said he was getting a loan to fly once a month. I said AFTER his training he can afford to fly once a month with the money he makes at his job. He needs the loan to fly frequently through his training.

I'm opposed to pay-as-you-go for students who can't afford lessons because, like I said, students will inevitably have long breaks in training which *increases* there overall training costs because they have to do so much review from lesson to lesson. So you can look at it two ways for folks who just don't have the real cash on-hand. Pay as you go, which will take them longer to complete the certificate and cost more than usual OR take out a loan and complete the training in a shorter amount of time with $100 - $150 month payments thereafter. Remember this is just a loan for a Private Pilot Certificate.

Anyway, again, thanks for the input

Grove

 

[Lazy8]

Can he put it on his credit card? Private should amount to about $5000, instrument another $2000 - $5000 (to build the 50 PIC). Just rough estimates. Not sure of your student's financial predicament, yet perhaps he can put it on credit cards and pay it off each month.

I don't recommend putting ANY flight training on a credit card (or any revolving line of credit) if the student cannot pay the card off in full every month. That can get you into some serious credit hell real quick.

Grove

 

[Lazy8]

I had a co-worker who graduated from ERU in the late 80's. He has been a pro-pilot ever since and is still 85K in debt from his school loans. It is a bad way to go. Training loans is a large part of what is killing our industry. If you don't want it bad enough to work three jobs then you don't want it bad enough.

Skyline

Yikes...

I'm kind of in the same boat with Key Bank. I went to ERAU for two years before realizing it wasn't worth the cash. (and lets not let that comment get us off track ) At the freshman orientation when the direct question of how much everything would cost from semester to semester they just answered by presenting us with all sorts of wonderful loans that could make it "affordable".

Live and learn...

Anywho, whaddyado!

Grove

 

[macfly]

I agree that it doesn't sound good when a 40 year old gets denied a training loan for bad credit; however, I never said he was getting a loan to fly once a month. I said AFTER his training he can afford to fly once a month with the money he makes at his job. He needs the loan to fly frequently through his training.

I'm opposed to pay-as-you-go for students who can't afford lessons because, like I said, students will inevitably have long breaks in training which *increases* there overall training costs because they have to do so much review from lesson to lesson. So you can look at it two ways for folks who just don't have the real cash on-hand. Pay as you go, which will take them longer to complete the certificate and cost more than usual OR take out a loan and complete the training in a shorter amount of time with $100 - $150 month payments thereafter. Remember this is just a loan for a Private Pilot Certificate.

Anyway, again, thanks for the input

Grove

I cant stay away grove my man... I lub ya brother!


TimeValueOfMoney TMV. 100-150 for how many months? I AGREE that spacing training will increase training costs, but does that negate the amount of interest that some one will pay over the term of thier loan? Is the payback of someone's loan equal to or greater than the projected amount of "DO OVER" Loss.?



Caveat - Just something to think about while we agree on one thing, spacing = forgetting = do over = more money( i know from personal experience:<). That formula is fact and can not be adjusted, modiifed, lossened, tossed or bucked.

Mathematically we have one known(total cost of loan over X amount of years) and one variable cost which is DO OVER SPACING VARIABLE.

Each student has its own equation. Lets toke on that for a bit.

 

[Lazy8]

I cant stay away grove my man... I lub ya brother!


TimeValueOfMoney TMV. 100-150 for how many months? I AGREE that spacing training will increase training costs, but does that negate the amount of interest that some one will pay over the term of thier loan? Is the payback of someone's loan equal to or greater than the projected amount of "DO OVER" Loss.?

It all depends on what the student's goals are and how soon they want to accomplish them. We both understand you pay a price for dragging out training and you pay a price for taking a loan out. I leave it up to the student to figure out which of the two evils they prefer (because sometimes a loan IS better); moreover, when it comes to a person just getting a Private Pilot Certifiate, a loan isn't ~that~ evil. Someone taking out a loan with SallieMae for $8k will end up oweing about $10,500 all said and done. They'll easily spend that amount and more on a Private if they're going to drag it out over 100-150 hours. So in this particular instance a loan sounds like a better option because the student will spend less and take less time to complete training.

In my own case (career-pilot) I wish I had been a touch smarter with loans. Key Bank just made it WAAAAY too easy to get money and I wasn't smart about it at the time. It's going to be an exciting next several years making mortgage-sized payments for loan repayment! Anyone want to come over for Ramen and tap water?


Grove