Using GI BILL or Sallie Mae Loans

[FightingFalconInstructor]

Please feel free to post questions about using GI Bill or SLM loans to finance your flight training. Most of our students use one or both, especially for the longer courses. Guard and Reserve members get GI Bill if they deploy for OIF or Enduring Freedom. I think getting your ratings and flying for the airlines is a better investment than a college degree for most military members changing careers. We'll help you even if you choose another school.

Carl

[Maximillian_Jenius]

Hahaha...good luck getting financed through Sallie Mae!

[SpiraMirabilis]

No, sallie mae loans are easy to get. Thats the problem.

[dbrault17]

Sallie Mae loans are evil. Students loans for higher education should not cost 12%. Yes thats twelve percent for some barrowers, like myself. Stay away from loans.

[Pietrantonio]

Yeah, SLM isn't quite the lender I thought they were going to be. I've been trying to get all the paperwork done since October, and I still don't have the money. I had to argue with them because on the Flight Schools enrollment agreement form, it stated that upon written request, all money on account will be refunded within five days...well sallie mae kept trying to tell me that there was no refund policy... I had to get the owner of the school to call them up.

I just checked my form again...13% APR...I'm going to call them and try to work that number down if possible. Especially when I have a high credit score, and that my co-signer does as well thats rediculous. A loan for 20K will cost me 50K all said and done.

Anyone have any good loan stories with a particular lender(s)?

[FightingFalconInstructor]

You could also look in to Monticello Student Loans. www.monticellostudentloans.com. Another school I am associated with said they were better than Sallie Mae.

the 12% interest rate seems to be the same for going to a 4 year college or flight training. Ask yourself this, unless you are an engineering major or doctor, which has the highest earning potential, flying or a fuzzy study degree from "State"? All my previous flight instructors are flying for Rejionals and after 5-8 years from finishing their education have a good chance of making $70-$100K a year. All in all, flying is probably a better deal and you can go back and get your degree on line if you think you want one. Something to think about.

Several of my students are military guys who are getting out and learning to fly rather than going to college.

Carl

[FightingFalconInstructor]

Each school sets its own refund policy and sends it to Sallie Mae. ALL loans take several months to get these days.

Carl

[DE727UPS]

"I think getting your ratings and flying for the airlines is a better investment than a college degree for most military members changing careers."

I agree, as long as one isn't shooting for the top tier jobs. A degree is still a virtual necessity for the best jobs. I don't see that changing. A career changer or ex-military guy might be happy at the regional level, and more power to them. Also, it is possible to get a degree on-line if a person changes their mind with where they want to end up.

I could easily live on 100K a year, and in MS, that's a great living. I think Capt at a regional is still a good job, compared to many other things.

[Maximillian_Jenius]

Originally Posted by Pietrantonio

Especially when I have a high credit score, and that my co-signer does as well thats rediculous. A loan for 20K will cost me 50K all said and done.

Yup, Sallie Mae doesn't like to "give it up."

A friend of mine who works for a large flight school in CA. said that they had a guy come in to borrow only $40k he had a 750 FICO and his co-signer had like a 790 FICO score.

Denied!

So, I say to all people trying to get a SLM loan for flight training, good luck.

Hell even on ATP's web page they say to try to get a loan with Wachovia, before SLM.

Talk to any FBO/Academy fiance person about SLM, and listen to the frustration in their voice, lol!

[FightingFalconInstructor]

The challenge is defining the "top tier" 30 years from now. All my friends that are Delta captains still have their Eastern rejection letters, 30 years ago Eastern was the top choice. Here at KGTR Aurora is building and flying a UAV tactical transport for the Army to haul supplies, not people. I wonder if their are any civilian applications for that? the good news is that you have to pay people more to fly airplanes from the ground than from the air.

Carl

[DE727UPS]

"the good news is that you have to pay people more to fly airplanes from the ground than from the air."

HAHA. Really, where do I sign up? If I could bring my comfy chair I'd quit UPS tomorrow.

Just kidding. Might be a good retirement job, though.

Anyhow, I was around 30 years ago, and the top tier jobs back then were the majors. I think that's still true, though admittedly, it ain't what it used to be...

That's a sweet looking Seneca by the way. You should come up with a private/commercial 2 day multi course to compete with ATP. Your airplane airplane and CFI's have them beat.

[FightingFalconInstructor]

We do a 2 day ATP course that does well competing with ATP. thanks for the kind words. I'll get you the info on the UAV jobs. They pay $20K a month to land UAVs in Balad, but they usually take 300 hour pilots to do that. The Guard does the UAVs from riverside, then the contractor pays big bucks for them to do the same job as when they where the uniform. They pay contractors $80-90K a year to teach USAF simulators, that's why I say it pays more not to fly than to fly.
the other dirty secret to UAVs it it increases, not decreases the demand for pilots. Mainly because the vehicle is usually slower and it never stops flying.

[DE727UPS]

"They pay $20K a month to land UAVs in Balad, but they usually take 300 hour pilots to do that."

Well, with all due respect, I'd don't think that will last any longer than the 20K a month Pan Am 747 Capt job did. If they can find 300 hour pilots to do the job with necessary competence, they will soon learn that they can pay the 18K a year that the regionals will pay 300 hour guys to be an airline pilot.

Maybe there's a catch.

[FightingFalconInstructor]

UAVs in Balad: It is a stop gap until they can transfer active duty pilots and train them to do the job. The lower time pilots are better because they have less negative transfer from actually being in the aircraft. The UAV pilot jobs are hard to get - you have to be in the right place or know someone. The USAF is sending thier first Guard pilots thru dedicated to UAVs after graduation. As a matter of fact, the USAF is changing the entire UPT program just because of the UAV pilot requirements. They will wing pilots after T-6s (primary training) then send them to UAV school.

[DE727UPS]

"They will wing pilots after T-6s (primary training) then send them to UAV school"

Well, so much for the military being a good route to the airlines. Unless the airlines start to see UAV time as PIC turbine....

[uswc45]

Here is a question about the GI Bill for you. How often does a student get reimbursed for flight training costs? Just at the completion of the cerrtificate or do you get 60% back every month?

[FightingFalconInstructor]

We do a monthly certification of training. They then pay you for each month's training as you go thru. There is a 4-6 week lag before the payments start getting to you.

[FightingFalconInstructor]

The FAA counts it as PIC time, and it is a turbojet. The UAV pilots will probably have aircraft you can sit in to fly for currency, so they will probably get as many landings as any other pilot. I think the value of USAF training is a big plus. Also, at least at first the Active Duty UAV slots will be a small number. The package haulers will probably use UAVs in the not to distant future so it might be a BIG plus. A UND student told me a major night freight company (will remain nameless) just bought them a UAV and said figure out how it works and how we can retrofit our aircraft. Don't have independent confirmation of that though.

[PatrickCPS]

Many of our students wind up with SLM for financing as well, and I have always said that student financing should not cost 12%. Unfortunately, for many, there aren't any other options.

If anyone wants to work with me to create an aviation financing corporation I'm all ears

[MFT1Air]

Originally Posted by PatrickCPS

Many of our students wind up with SLM for financing as well, and I have always said that student financing should not cost 12%. Unfortunately, for many, there aren't any other options.

If anyone wants to work with me to create an aviation financing corporation I'm all ears

Hmmm, I'm curious about putting more of my MBA classes to work.

Sounds like a plan.

[rickyrhodesii]

Originally Posted by uswc45

How often does a student get reimbursed for flight training costs? Just at the completion of the cerrtificate or do you get 60% back every month?

I know Carl touched a little on this. Like he said, it'll take 4-6 weeks to get the initial payment(s) deposited. Once that happens, you'll see the money roll into your account each month. It's nice...you 'kinda" get paid to fly. I took the reimbursements and poured it back into my flying.

I'm a current student at Accessible. I'd have to say, out of the schools I trained at and looked into, Carl seemed to be the most knowledgeable about the VA system and getting full reimbursements. Big bonus to a vet like me looking to use my bennies.