Financing Troubles for student pilot...to be...

[CBorstein]

I am trying to begin my pilot training at a great part 61 school, The Palo Alto Flying Club in the Bay Area. The problem is that the school does not have any financing options available. I have been calling banks to set them up with PAFC, like Sallie Mae and Key Lend, but everyone says the school does not qualify. The only one with hope is Sallie Mae. What can I do? Can anyone help? Thanks,

Chad

 

[Vik]

This isn't meant to be a d!ckhead response, but switch to another school that is good and allows you to qualify for financial aid. Don't make this complicated.

 

[Cutlass1287]

Or you could just get a credit card.

 

[ParrotheadPilot]

Or you could just get a credit card.

Have fun paying interest out the arse!

 

[User546]

Don't even put that in the kids head! Do a credit card re-payment schedule on what $50,000 will be in 10 years! If you dont have the money to pay off the credit card now, I promise you wont in 10 years!

I would recommend talking to some local banks and see what kidn of low interest rate you can get on a bulk flight training loan, or like everyone else said GO to a school that has financing.

I personally deal with KeyBank and there a pain in the butt, however that was the only way I could've made it thru my training. Plus the bigger institutions liek that work with you if you become unemployed or can't meet the montly payment. They'll normally let you make minimum payments, or give you a forebarance that allows you to skip a month if you are unemployed. Won't find that with most banks.

And in the world of aviation, ESPECIALLY starting out... you need that kind of lee-way! Because your going to have a house-payment sized monthly payment when its over with if you go all the way thru.

Just my .02

 

[350DRIVER]

Pilot Finance. Probably one of the more affordable ways to do this and your monthly payments will be relatively low with a decent rate.

http://www.pilotfinance.com/pages/539359/index.htm

good luck,

3 5 0

ps> do not use a credit card unless you can pay if off before the interest rates kick in or else this will bury you.

 

[HMR]

Don't even put that in the kids head! Do a credit card re-payment schedule on what $50,000 will be in 10 years! If you dont have the money to pay off the credit card now, I promise you wont in 10 years!

I would recommend talking to some local banks and see what kidn of low interest rate you can get on a bulk flight training loan, or like everyone else said GO to a school that has financing.

When I was in the same spot I checked my bank (9%), Sallie Mae (15%), and some other student loan co.'s (15-20%). Seemed alot cheaper to use a credit card. I maxed out 4 credit cards. Then I called each company and said "if you don't lower my rate I'm transferring my balance to another card". All four obliged. Two went to 0% and the other two were 3-4%. Saved me a bundle over any other loan option. Be careful, do alot of research. If you don't read the fine print you could end up with a 30% interest rate. The credit card option worked great for me.

 

[FlyGirlFelicia]

Personally, I have gone with Key Loan and they have been very good. My rate is about 7%, which is pretty good, I think. I would NOT suggest using a credit card for flight training, I have a few friends who are totally ruining their credit trying to pay it all back on Regional Airline saleries. But definitely pick a flight school that is familiar with (and accepts) flight loans, I think you will be a lot happier.

 

[HMR]

I would NOT suggest using a credit card for flight training, I have a few friends who are totally ruining their credit trying to pay it all back on Regional Airline saleries.

I’m pretty good at math but I need help on this one: How is a 7% Key loan easier to manage than a 0% or even a 4% credit card? Is the interest tax deductible? If so it might make sense. Otherwise, it sounds like the same jive the loan representatives used to use on my students when they talked about the “evils” of credit cards. I did a lot of research before jumping in and as a result I have an excellent credit score. The only thing I would have done differently is take advantage of more offers for airline miles.


As for the regional pilots who are “totally ruining their credit”- Give me a break. At what point did they realize they wouldn’t be able to make their payments on regional FO pay? I hope they make better decisions in the cockpit than they did with their finances/careers. Again, how would having a high interest Key or Sallie Mae loan help their situation?



Chad- Keep researching this topic. Whatever you decide, KEEP YOUR COSTS DOWN during training. Fly the cheapest C150 or 152 you can find for your private. Stay away from that shiny new Cirrus or C182. You don’t need any of those bells and whistles for your private. Come to class prepared and keep a close eye on what your CFI is billing you. I gave this same advice to my own students (I had to learn the hard way) and that’s why so many of them are now good friends. Good Luck!

 

[qmaster3]

Just an option. Join the Air Force, Navy, CG reserves. You will have min. Obligations. The GI bill will cover 60% of your training after your private. You can use your Drill pay to cover the rest. To me it's better than having 50,000 big ones to pay off.