• NC Software is having a Black Friday Sale Event thru December 4th on Logbook Pro, APDL - Airline Pilot Logbook, Cirrus Elite Binders, and more. Use coupon code BF2020 at checkout to redeem 15% off your purchase. Click here to shop now.
  • NC Software is proud to announce the release of APDL - Airline Pilot Logbook version 10.0. Click here to view APDL on the Apple App store and install now.

Sallie Mae Doing its Part to Reduce the Glut of Pilots

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
Guess everyone can go back to demanding higher pay now, since there will be a shortage



The news today is that student loan entity Sallie Mae is moving its call center back to the USA...saw just a blurb on CNN...when I search google news found this new little gem:



"Sallie Mae slashes flight training loan business

By Ian J. Twombly
Responding to what it calls “difficult market conditions,” Sallie Mae announced via letter to select flight schools recently that it is significantly reducing the amount of flight training loans it generates.
Although the reduction is thought to be significant and widespread, the company wouldn’t comment on how many schools will be cut from the loan program.
“Due to difficult market conditions, we have found it necessary to focus our resources only on those schools that generate sufficient volume of approved loans to justify the expense of maintaining this manually intensive program,” said a spokeswoman.
The effective date of the termination is May 8. Applications submitted up to that point are being processed, according to the letter. Students are encouraged to speak with their flight school manager for additional details on whether or not financing will be available through Sallie Mae.
AOPA reminds members that if offers an alternative financing route through its Flight Training Funds Program. The Program doesn’t require students to use a particular school; even private instructors are eligible.
March 31, 2009"
 

Colonel Savage

Southern style...
Joined
Mar 11, 2008
Posts
1,271
Total Time
NoTime
So they will continue their predatory lending practices through May 8th, but AOPA will continue the practice. This will allow the flight academies to continue to sell this bill of goods to unsuspecting school aged kids, making a mockery of becoming an "airline pilot", allowing the pilot glut to further depress wages and working conditions.

GREAT!!
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
So they will continue their predatory lending practices through May 8th, but AOPA will continue the practice. This will allow the flight academies to continue to sell this bill of goods to unsuspecting school aged kids, making a mockery of becoming an "airline pilot", allowing the pilot glut to further depress wages and working conditions.

GREAT!!

I never even heard of Sallie Mae before today...but if they are anything like their cousins Fannie & Freddie, good riddance. The profession needs to be flushed of these Mesa farms and AOPA needs to realize that or disappear.
 

Amish RakeFight

Registered Loser
Joined
Dec 28, 2005
Posts
8,006
Total Time
.
A lot of students count on this type of funding. Sad. Aviation is truly diminishing at the roots.
 

BeCareful!

Well-known member
Joined
Oct 21, 2004
Posts
809
Total Time
10,000
I wrote to AOPA years ago to ask them to stop glorifying PFT in the magazine and understand that hard working airline pilots have little in common with their elitist, aircraft owning, $500 cheese burger eating membership. They didn't respond so I demanded that they stop sending me membership applications. They are not our friends, IMO.
 

BoilerUP

Citation style...
Joined
Nov 11, 2003
Posts
5,311
Total Time
1500+
I wrote to AOPA years ago to ask them to stop glorifying PFT in the magazine and understand that hard working airline pilots have little in common with their elitist, aircraft owning, $500 cheese burger eating membership. They didn't respond so I demanded that they stop sending me membership applications. They are not our friends, IMO.

God forbid the Aircraft Owners & Pilots Association market toward *gasp* aircraft owners.

As far as PFT goes though, we're in agreement...but a magazine is a business and as long as the advertising rates get paid those glossy ads will continue to be put in there. Its really too bad that ALPA (or some looser association of professional pilot unions) isn't willing to spend the money to put a glossy ad of their own, showing the realities of the industry and the damage PFT has on the profession, on the opposing page...

Back on point with the original post, Sallie Mae blows. I used to live a mere 5 minutes from their call center in Fishers, IN and when I called because they screwed up my student loan payments for the fourth time in six months, my call went to an Indian call center first and only after sternly asking for "an American agent" did you get to talk to a good midwestern person who 1. you could actually understand and 2. could get the problem fixed.
 

ualdriver

Well-known member
Joined
Dec 21, 2003
Posts
1,400
Total Time
13Kish
Wow, that's surprising. Sallie Mae is the biggest provider of educational loans in the country. They also buy the loans from other banks who make educational loans so that they can "relend" to college students. If Sallie Mae stopped lending or buying loans from banks in any significant way, I think many people would have a hard time paying for college.

I wonder if they're slashing loans for flight training because of flight students having more difficulty than other types of students paying the loans back (forbearances for example).

And that AOPA deal doesn't look that great. First of all it's administered by FIA Card Services, which is a credit card company. The interest rates will probably be astronomical. Plus, you can only borrow 25K. I imagine it would be pretty hard to work through your ratings quickly if that's all one could borrow. Now that borrowing a significant amount of money for this career is a smart thing to do, anyway.
 

fly4surf

Well-known member
Joined
Dec 31, 2004
Posts
306
Total Time
lots
Is this the beginning of the drive towards MPL?

'but there is a shortage because of the lack of available student loans'

The death spiral continues.
 

lionflyer

Well-known member
Joined
Jun 13, 2002
Posts
359
Total Time
4000+
Is this the beginning of the drive towards MPL?

'but there is a shortage because of the lack of available student loans'

The death spiral continues.


If MPL becomes a reality, it will still be expensive to achieve. The FAA has done plenty of stupid things but I don't see them signing off on this. Most jets and big T-props require 2 PILOTS, not an ATP and a button pusher.
 

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
Total Time
9000+
Key Loans did the same thing after 9-11 when the pilots getting out of ERAU and the like owed 100K+ and defaulted.
 

Lear70

JAFFO
Joined
Oct 17, 2003
Posts
7,487
Total Time
4abeer
I never even heard of Sallie Mae before today...
Wha...???

Did you go to college?

Did you get a subsidized or unsubsidized Stafford Federal Student Loan?

Sallie Mae is THE government lender for these loans, just like Fannie Mae and Freddie Mac are the primary underwriters for FHA housing loans. Anyone who has a Stafford Federal Student Loan knows who Sallie Mae is.

Incidentally, I have NO problem with anyone cutting funding to "puppy mill" academies and PFT / Gulfstream type companies, but it's a mistake to cut funding to the 4-year Accredited degree programs that have flight departments such as ERAU, UND, MTSU, etc. Those are recognized flight schools that can only be funded in conjunction with four year Bachelor degrees, and THOSE are the kinds of pilots I'd like to see coming up through the ranks.
 

Perturbed

New member
Joined
Jun 2, 2008
Posts
4
Total Time
800
Why would anyone lend money to a group of people who are likely to STIFF when times get tough. Go knock on your neighbor's door and try to get a loan for flight school.

If it was a good deal then lots of people would loan the money.
 

instructordude

Playing with Fire
Joined
Apr 13, 2006
Posts
975
Total Time
3800
Wha...???

Did you go to college?

Did you get a subsidized or unsubsidized Stafford Federal Student Loan?

Sallie Mae is THE government lender for these loans, just like Fannie Mae and Freddie Mac are the primary underwriters for FHA housing loans. Anyone who has a Stafford Federal Student Loan knows who Sallie Mae is.

Incidentally, I have NO problem with anyone cutting funding to "puppy mill" academies and PFT / Gulfstream type companies, but it's a mistake to cut funding to the 4-year Accredited degree programs that have flight departments such as ERAU, UND, MTSU, etc. Those are recognized flight schools that can only be funded in conjunction with four year Bachelor degrees, and THOSE are the kinds of pilots I'd like to see coming up through the ranks.

Gulfstream has hired quite a few from the "Academy".
 

regionaltard

seat lock
Joined
May 22, 2005
Posts
951
Total Time
90°
Mesa Mae.
 

Way2Broke

Member
Joined
Feb 24, 2005
Posts
2,882
Total Time
4500
GOOD! They are my highest interest rate! I don't wish them on anyone!
 

Lear70

JAFFO
Joined
Oct 17, 2003
Posts
7,487
Total Time
4abeer
Yeah, I know. Been thinking about taking ONE class, getting a student loan for it, so I could combine them and lower the interest rate on both...

Anyone done that yet, by the way?

9.25% interest, sucks...
 

hockeypilot44

Well-known member
Joined
Feb 26, 2005
Posts
893
Total Time
Yeah, I know. Been thinking about taking ONE class, getting a student loan for it, so I could combine them and lower the interest rate on both...

Anyone done that yet, by the way?

9.25% interest, sucks...

Wow. My mortage is only 4.7% interest, and that's for a 30-year fixed loan. My student loan is fixed at 2.85%.
 
Top