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

[bobs98tlr]

qmaster3 is right, join the military....Air National Guard/Army National Guard/Air Force whatever. Im just about done with my Commerical and im finally about to leave for the Air National Guard. I was gonna go active Air Force but thats another story. The ANG will pay for school and 60% of any training after your private AT a school that is approved. However, the Illinois ANG will pay for your school and flight lessons at an approved school come June 1, 2005 i believe. Very cool deal that i hope to get in on.

Otherwise, switch schools and get the key bank loan or sallie maye. I messed up my credit 3 years ago over stupid stuff when i was at a 141 school. DONT put flying lessons on credit cards. Good luck.

 

[Panda]

The Key Loan is considered a student loan and it's interest is tax deductible. The rate for key varies on the LIBOR rate (mine does) which is a pretty stable. I think it is the Libor + 1% which is approx. 5.5%. Key also doesn't require repayment until you have completed your training....

Credit Cards may start at 0-7%... but once you have a large balance, and you are a couple days late with your payment- you get hit with the old 21%. None of this interest is tax deductible.[/QUOTE]
You may want to consult with a tax accountant in regards to the deductability of the interest of a student loan. For one, you will need to itemize your deductions which in turn may or may not be in your best interest (depending on your income.)

Also, the "Key Loan" will probably have the interest capitalized. What this means is that although you are not required to make any payments until you are done with training, the loan still earns interest that is tacked-on to the principal amount (the original amount that you borrowed.) Bottom line is that you need to do your homework. If you borrow $50,000 at 5.5% for 7 yrs, this would equal to a $720 per month payment. That's half of a first year Regional FO salary. I imagine that CFI income will be even tighter.

On the other hand, training with Uncle Sam is free. Look at all your options.

Best of luck.

 

[CBorstein]

The military is one of my main goals. I am currently in the Army Reserve and want to transition to aviation, but it is VERY competitive, to say the least. Having my private pilots license before I apply will increase my chances infinitely. Then finish my time in the military and transition to a regional. Nice to have goals in life.....