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aloft · February 10th, 2005, 04:51

It SHOULD be very alarming, considering you won't see a $48k salary for at least 4 years after taking out the loan. You guys need to do the math on how, as a flight instructor averaging $12-15k/yr BEFORE taxes, rent, food, car, etc, you're going to afford a $450/mo loan payment! $12k/yr, less 15% in taxes (actually, it'll be more than that, since ATP's instructors are "independent contractors", meaning that you'll have to pay self-employment taxes of 7.65%. We'll be generous and call it a 25% tax liability. $12k/yr = $1k/mo - 25% = $750 - $450 loan payment = $300 - $200 rent at an ATP apartment - $100. That means cell phone (you do know you're required to have a cell phone, right?), food, car (to say nothing of health insurance) has to come out of that remaining $100. And if you've got existing student loans (remember, you need that 4 year degree), you're simply screwed.

Now, I'm sure some of you geniuses will suggest taking out enough of a loan so you can make your payments during the first two years or so while you're making next to nothing. That might work, but man, that's just stupid in my book.

Long story short, think long and hard before taking out a loan that size.

February 10th, 2005, 04:51	#17
aloft Old Skool Join Date: Sep 2001 Location: SL,UT Posts: 8,166	Re: How difficult is it to get financing? It SHOULD be very alarming, considering you won't see a $48k salary for at least 4 years after taking out the loan. You guys need to do the math on how, as a flight instructor averaging $12-15k/yr BEFORE taxes, rent, food, car, etc, you're going to afford a $450/mo loan payment! $12k/yr, less 15% in taxes (actually, it'll be more than that, since ATP's instructors are "independent contractors", meaning that you'll have to pay self-employment taxes of 7.65%. We'll be generous and call it a 25% tax liability. $12k/yr = $1k/mo - 25% = $750 - $450 loan payment = $300 - $200 rent at an ATP apartment - $100. That means cell phone (you do know you're required to have a cell phone, right?), food, car (to say nothing of health insurance) has to come out of that remaining $100. And if you've got existing student loans (remember, you need that 4 year degree), you're simply screwed. Now, I'm sure some of you geniuses will suggest taking out enough of a loan so you can make your payments during the first two years or so while you're making next to nothing. That might work, but man, that's just stupid in my book. Long story short, think long and hard before taking out a loan that size.