Key bank loan?

[ATCT]

Just wondering if anyone here has taken out the Key Bank loan (im looking at getting it through Pan Am Intl Flight at KBVI). Anywho just want to know how the pay back is? Interest Rate? etc. Are ya happy with it? Was it enough to finish your training? Any help would be appreciated. Im a pvt just about to finish up my degree in Air Traffic Control and looking to go get my IFR, Comm, CFII and MEL. Thanks.


Clint

 

[JD2003]

I wouldn't borrow through Key Bank if it was the last bank in the world. They are crooks in my opinion. They added fees to my loan totalling 9000 dollars and when I send them extra money (despite numerous requests) they put it on interest and not on principle.

It will be many years before I am free and I will never do business with them again and will encourage anybody I come in contact with never to borrow from Key Bank.

 

[flydrummer]

How does everyone feel about Sallie Mae?

 

[meyers9163]

Well I dont know how everyone else feels about them but I have "Good" credit according to Sallie Mae and was applying to get enough money to do a Private Pilots and was going to barrow about $7500. They quoted me 10% ARP plus prime over 10 years to pay it back. They wanted over $6000 in interest. And of course like any loan there were the other charges I believe $400 processing fee. Needless to say I'm looking for other options. But with any loan unless you got a car for about 3% APR you are going to pay a lot in interest more than likely. Like I said I had good credit and just back in Feburary I got a car loan for only 3% APR. So its your call but any way you do it unless you have a way to get money w/o interest you will be paying a nice amount in interest. Best of luck any way you go!

 

[macfly]

Sure as long as you know the payments for said loans are equal to 500 bucks or more a month and your MONTHLY PAYMENT for the next 2-3 years will be 1000-1500K. Do the MATH. Can you make it, sure you can, make a a new paradigm.


A ship without rudder is like a ship without a rudder.


Bottom line, leave aviation to the the wealthy, kido.

goodday.

 

[MFRskyknight]

Bottom line, leave aviation to the the wealthy, kido.

That's gotta be one of the more condescending (and inaccurate) things I've read on here. I think it would be more fair to say "leave aviation to the determined"...if you have the passion, you will find a way.

IF you are going to do a loan, DO NOT go with Key Bank. Whoever said they are crooks is absolutely right. I haven't begun paying back on mine yet, but they're nipping at my heels already over the Airman fiasco.

Think of the arguments for loan vs. pay-as-you-go like this: A few years of working 2-3 jobs, barely existant social life, Suave shampoo, Kraft macaroni and cheese and escaping with your ratings debt-free vs. 30 years of all of the above to pay off a loan that saved you a little bit of time.

I wish I had thought of it that way 6 months ago.

MFR

 

[MFRskyknight]

duplicate post.

 

[schoolio]

I'm using Key for my loan at PAIFA-DVT. I got a decent interest rate (don't remember off the top of my head exact number), but that's primarily because my dad cosigned and he has perfect credit. Key mailed checks to me, I deposit in separate bank account, and give PAIFA a check for a smaller amount ($3-5K) when my balance gets low so I don't get completely screwed if something happens.

Consider a cosigner if available. Repayment begins upon completion of training (PM me for details on "delayed" repayment). Interest begins accruing when they make the first disbursement, but only for that amount. It's going fine for me so far, but then again, I haven't started repayment yet. Good luck.

 

[User546]

Bottom line, leave aviation to the the wealthy, kido.

Thats bullsh1t... Some of the poorest people I know are pilots!

I'm a former Key Bank'er and I would not recommend them to anyone, they are horrible to deal with and like the other user said, they tend to tack on stuff from time to time. And the plan and "help" that they say they'll give you if you need it is pretty much misleading as well.

It's a variable interest rate loan, and if you go to Pan Am you will be borrowing the full $80-100K, and paying it back over 30 years. Stop and think for a minute how much that variable interest rate is going to be over the next 30 years. The interest rates are okay right now, but don't fool yourself that their not going to be going up over the next few years.

People I know thats paying back the full amount are paying between $575-$650 a month currently. Believe me, you can do your flight training for A LOT LESS somewhere else. The Academy structure will NOT be your key to making it in this biz, I promise. All it's going to ensure you is you pay twice as much for training and be more indebted for 20 years more then if you did it the FBO route.

 

[User546]

This thread reminds me, I heard a rumor the other day that Key Bank was going to stop loaning money for pilot training because they were having so many students default on their loans... any truth to that?
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[Lazy8]

This thread reminds me, I heard a rumor the other day that Key Bank was going to stop loaning money for pilot training because they were having so many students default on their loans... any truth to that?

It's already happened. Key Bank pulled there Aviation loan program from pretty much every flight school in the country. The only places that can still use them qualify as "Title somethingoranother" schools. (Like ERAU, UND, etc...) Key pulled the program because so many pilots were defaulting and because a lot of flight schools were using Key Aviation Loans to finance aircraft and other things they were never meant for...

G

 

[schoolio]

I did receive a letter from Key stating that they would not be offering new loans for training at Pan Am, but that my loan would not be affected. Pan Am is working feverishly to become "Title IV" certified right now. They should be done with that soon. How soon? I'm not sure. I'm not too terribly worried that the school will shut it's doors, due to the fact that there are three foreign training contracts right now; but that didn't stop me from putting my loan checks in a separate bank account.

 

[BRIGADEAVIATOR]

I did the same thing schoolio did, all my extra cash is in an ing savings account, so i rather than the flight school is making somewhat of interest on it. I cant complain THUS FAR, but when i heard key was going to put a stop to aviation trainign loans i was quick to get a few thousand for my cfi and multi.

I work at a flight school that used to deal wiht key but key decided to stop because so many students washed out and kinda disappeared, and since there was the no payment till 6 months after graduation the students kept saying they were still going to finish (but never did).

 

[Jytters]

I still have an uncashed check for $19,000 from Key sitting in my desk drawer. I was going to use it to goto ATPs, but never heard back from ATPs, until they wondered why I wasn't in class a couple months ago.

So, I guess I'll cash the check, be in debt, buy microwave noodles, complain on the website, try and pay back the loan, and pretend to be a pilot.

 

[HMR]

Don't get a loan with those terrible conditions. Do some more homework. For instance, I put about $15,000 on a zero percent credit card. Every 6-12 months the rate would go up and I'd call and threaten to transfer my balance if it didn't stay at 0%. Guess what? That was several years ago, the card is paid off and I'm STILL able to keep it at 0%. Gotta love Citibank.

The Sallie Mae-type loans are a ripoff. Read the fine print. It will take many years to pay back just the interest, forget the principle. I know there's a bunch of guys at regionals making payments on 50-100,000 dollars of flight training debt but I've never been able to figure out how they do it.

Be smart with your training dollars. Good Luck!

 

[MFRskyknight]

I still have an uncashed check for $19,000 from Key sitting in my desk drawer.

What would you say if I told you that for ONLY $19,000 you could have eternal happiness???

PM me for my mailing address...

MFR

 

[Metro752]

If you took any economics classes in college, I don't see why people are having trouble with loans. It's pretty cut and dry. If they don't want to give you a loan that meets your terms, F__K EM!

It's your money, they are your beotch. I don't care if you are talking to 1 of 1000s of twerps they hire to sell you a loan, they give you any crap, and you tear off their heads, drop a steamer, and ask them if they want your business they better do it your way, or the highway. You'll find a good deal eventually.

 

[Lazy8]

So, I guess I'll cash the check, be in debt, buy microwave noodles, complain on the website, try and pay back the loan, and pretend to be a pilot.

Welcome aboard!

Grove

 

[Lazy8]

I know there's a bunch of guys at regionals making payments on 50-100,000 dollars of flight training debt but I've never been able to figure out how they do it.

Airlines and pilots are one in the same. The airlines can operate with hundreds of millions of dollars worth of debt, never turn any profit, and still survive. The pilots flying for them just do it on a smaller scale

Seriously though, I don't know how it all works out either. I've got some serious loan repayments coming myself. If I figure out this magical survival plan I'll fill you folks in on it. 'Till then I imagine it's just eat cheap, work your butt off, and find a nice guy/gal to help support your broke !@# until you get the ball rolling.

Anyone know the next winning powerball numbers? :bawling:

g

 

[Atccfi]

So we all know the bad loan programs.....Anyone have a good one they can recommend to us?