Key or Sallie

Officer448 · July 1st, 2005, 00:39

Hey guys, talked to Diane at ATP today in regards to my student loan. Would greatly appreciate any advice from those who have been there, done that in regards to the Key and Sallie Mae loans. I am supposed to call her back on Friday, July 1, and get the paperwork started. All help will be greatly appreciated.

BrknWing4 · July 1st, 2005, 12:32

Well you beat me to the punch 448. I’m also inquiring about the two; I’m interested to see what the overall consensus will have on these two financial institutions. I’ve heard rumors where Key Bank isn’t allowing the same type of loan for training as they were a couple of months ago. Don’t quote me on that, but I’m sure I saw that somewhere on this forum.

I will be attending ATP at the beginning of January in one of the Florida locations due mainly of the Wx that time of year. I see you are from the lovers state. Are you planning on attending the new Manassas location? If so, maybe you could give me some insight on their facilities there.

-Steve

Merlin · July 1st, 2005, 21:47

I'd choose the one that gives you the best rate and terms.

Jeremy

Officer448 · July 1st, 2005, 23:51

Actually, after talking to Diane (who is super nice and very helpful), Key will provide the better of the two interest rates. Also, if you are planning on taking an extra amount of money for "living expenses, etc." Key seems to be the better. However, the drawback to Key is they only have a 6 month deferrement (which begins the day you complete the program) where as Sallie has up to 18 months (I believe is what Diane told me, but don't quote me on that). One other drawback to the Sallie Mae loan is they will only allow $6,000 over the cost of training, and Diane told me that without a cosigner, the best amount I would probably get would be $20,000, which isn't enough for the PPL and the ACPP.

So in regards to Key, all you ATP guys/gals that have went that route, that are now instructors with ATP, do you have any problems meeting the loan payment each month on a CFI's salary?

And as for my training, I would be attending JAX for PPL, then ATL for ACPP. Manassas is actually further away from my home town than Atlanta. Plus I visited the Atlanta location about 2 months ago, and liked the facilities, but I'm sort of swayed in my decision based on Heath's 90 blog which he completed at Atlanta.

pscraig · July 2nd, 2005, 00:28

I did the Key Bank loan and although the 6-month deferment was great, my parents ended up helping out when the repayment started. I just don't think a $250+ loan payment is doable on a $1000-1200 monthly salary.

Something else everyone should consider is tax, a topic that ATP does a very poor job of advising their new instructors. You're an independent contractor and pay tax on your own-15% of what you make. You may have deductions but most people end up with a huge tax bill the following year. How does this relate to loan repayment? Well, in retrospect I should have set aside maybe $100 a month towards taxes. There wasn't much to live on before, and even less with taxes considered.

BrianNC · July 2nd, 2005, 18:19

I was actually going to start a thread on this myself.

I know that Key Bank has approved schools which are listed on the site when you apply.

Is Sallie Mae the same way, or could you actually borrow money from them to train at an FBO?

FLflyer · July 2nd, 2005, 20:17

I used the Key loan as well, and it was a quick and painless process, actually. Of course, repaying the loan on a CFI's salary (I'm currently instructing at ATP's Stuart location, which is a great location by the way) won't be fun, but for me it is definitely workable.

kailuaboy · July 3rd, 2005, 05:27

I found this out a few months ago.....

Call key bank and ask for a forbeance (spelling?) letter (if your about to make payments). You dont have to pay a dime back to key bank until you can afford the monthly payments.

Just an example here. If your monthly payment is $580. You dont have to pay anything until you make $2900. Your monthly payment has to be 20% of your income. If its not 20% of your income, then your interest just keeps adding up and you dont have to pay anything until you can afford it.

$260/month = $1300/month paycheck

I guess borrowing more than needed helps temporarily, but kicks your butt in the long run.

Just FYI.

Ivan

Merlin · July 4th, 2005, 08:39

Are you sure that the forebearance lasts until you can afford the loan? Im fairly certain they told me that it lasts up a certain number of months (I dont remember how long, but it was 6 months or less) and you only get one forbearance during the life of the loan.

Like you said, you do have to qualify for it by having too low a salary.

I would suggest that you request a forbearance with great caution--since you only get it once, you might need it later on. For me, it's working for ExpressJet and my wife being on maternity leave.

The other thing about a forbearance is that interest still accrues on the principle. The amount of $$ that you owe will increase while on a forbearance. You can make interest only payments too alleviate this problem.

Speaking of interest only payments, the same thing applies while your loan is deferred. If you can, make interest only payments as soon as you finish the program. Otherwise, your loan will cost more.

Jeremy

kailuaboy · July 5th, 2005, 06:50

Key bank told me that the forebearance lasts until you can offord it. So, if I only get one forebearance in my life time.... that sucks

I did talk to two different people and they told me the same thing. That you can use the forebearance letter as many times as you need. I had to send in my finance information (tax returns, etc.).

Ivan

Merlin · July 5th, 2005, 11:54

I could be wrong about the time limit--I may have misunderstood what they told me and I got mine under that impression.

In any case, be careful using it, the amount of your loan grows the longer you don't pay on it. In other words, it's not free.

Jeremy

kailuaboy · July 6th, 2005, 19:19

lol... yeah i know... but i dont have a choice right now... i need to pay priority bills first. ie. RENT, car insurance, food and gas.

Ivan

ERJ-135 · July 10th, 2005, 14:50

pscraig: "You're an independent contractor and pay tax on your own-15% of what you make. You may have deductions but most people end up with a huge tax bill the following year. How does this relate to loan repayment? Well, in retrospect I should have set aside maybe $100 a month towards taxes. There wasn't much to live on before, and even less with taxes considered."

How do you cover the liability insurance if you are an independent contractor and with such low income?

July 1st, 2005, 00:39	#1
Officer448 Junior Member Join Date: Dec 2004 Location: Virginia Posts: 52	Key or Sallie Hey guys, talked to Diane at ATP today in regards to my student loan. Would greatly appreciate any advice from those who have been there, done that in regards to the Key and Sallie Mae loans. I am supposed to call her back on Friday, July 1, and get the paperwork started. All help will be greatly appreciated.

July 1st, 2005, 12:32	#2
BrknWing4 Newbie Join Date: May 2005 Location: Spotsylvania, VA Posts: 18	Re: Key or Sallie Well you beat me to the punch 448. I’m also inquiring about the two; I’m interested to see what the overall consensus will have on these two financial institutions. I’ve heard rumors where Key Bank isn’t allowing the same type of loan for training as they were a couple of months ago. Don’t quote me on that, but I’m sure I saw that somewhere on this forum. I will be attending ATP at the beginning of January in one of the Florida locations due mainly of the Wx that time of year. I see you are from the lovers state. Are you planning on attending the new Manassas location? If so, maybe you could give me some insight on their facilities there. -Steve

July 1st, 2005, 21:47	#3
Merlin Junior Member Join Date: Dec 2003 Location: Dallas, TX Posts: 142	Re: Key or Sallie I'd choose the one that gives you the best rate and terms. Jeremy

July 1st, 2005, 23:51	#4
Officer448 Junior Member Join Date: Dec 2004 Location: Virginia Posts: 52	Re: Key or Sallie Actually, after talking to Diane (who is super nice and very helpful), Key will provide the better of the two interest rates. Also, if you are planning on taking an extra amount of money for "living expenses, etc." Key seems to be the better. However, the drawback to Key is they only have a 6 month deferrement (which begins the day you complete the program) where as Sallie has up to 18 months (I believe is what Diane told me, but don't quote me on that). One other drawback to the Sallie Mae loan is they will only allow $6,000 over the cost of training, and Diane told me that without a cosigner, the best amount I would probably get would be $20,000, which isn't enough for the PPL and the ACPP. So in regards to Key, all you ATP guys/gals that have went that route, that are now instructors with ATP, do you have any problems meeting the loan payment each month on a CFI's salary? And as for my training, I would be attending JAX for PPL, then ATL for ACPP. Manassas is actually further away from my home town than Atlanta. Plus I visited the Atlanta location about 2 months ago, and liked the facilities, but I'm sort of swayed in my decision based on Heath's 90 blog which he completed at Atlanta.

July 2nd, 2005, 00:28	#5
pscraig Senior Member Join Date: Jul 2001 Location: Houston, TX Posts: 1,021	Re: Key or Sallie I did the Key Bank loan and although the 6-month deferment was great, my parents ended up helping out when the repayment started. I just don't think a $250+ loan payment is doable on a $1000-1200 monthly salary. Something else everyone should consider is tax, a topic that ATP does a very poor job of advising their new instructors. You're an independent contractor and pay tax on your own-15% of what you make. You may have deductions but most people end up with a huge tax bill the following year. How does this relate to loan repayment? Well, in retrospect I should have set aside maybe $100 a month towards taxes. There wasn't much to live on before, and even less with taxes considered.

July 2nd, 2005, 18:19	#6
BrianNC Senior Member Join Date: May 2005 Location: Charlotte, NC Posts: 817	Re: Key or Sallie I was actually going to start a thread on this myself. I know that Key Bank has approved schools which are listed on the site when you apply. Is Sallie Mae the same way, or could you actually borrow money from them to train at an FBO?

July 2nd, 2005, 20:17	#7
FLflyer Junior Member Join Date: Jul 2002 Location: IAH Posts: 230	Re: Key or Sallie I used the Key loan as well, and it was a quick and painless process, actually. Of course, repaying the loan on a CFI's salary (I'm currently instructing at ATP's Stuart location, which is a great location by the way) won't be fun, but for me it is definitely workable.

July 3rd, 2005, 05:27	#8
kailuaboy Senior Member Join Date: Mar 2005 Location: CLE Posts: 302	Re: Key or Sallie I found this out a few months ago..... Call key bank and ask for a forbeance (spelling?) letter (if your about to make payments). You dont have to pay a dime back to key bank until you can afford the monthly payments. Just an example here. If your monthly payment is $580. You dont have to pay anything until you make $2900. Your monthly payment has to be 20% of your income. If its not 20% of your income, then your interest just keeps adding up and you dont have to pay anything until you can afford it. $260/month = $1300/month paycheck I guess borrowing more than needed helps temporarily, but kicks your butt in the long run. Just FYI. Ivan

July 4th, 2005, 08:39	#9
Merlin Junior Member Join Date: Dec 2003 Location: Dallas, TX Posts: 142	Re: Key or Sallie Are you sure that the forebearance lasts until you can afford the loan? Im fairly certain they told me that it lasts up a certain number of months (I dont remember how long, but it was 6 months or less) and you only get one forbearance during the life of the loan. Like you said, you do have to qualify for it by having too low a salary. I would suggest that you request a forbearance with great caution--since you only get it once, you might need it later on. For me, it's working for ExpressJet and my wife being on maternity leave. The other thing about a forbearance is that interest still accrues on the principle. The amount of $$ that you owe will increase while on a forbearance. You can make interest only payments too alleviate this problem. Speaking of interest only payments, the same thing applies while your loan is deferred. If you can, make interest only payments as soon as you finish the program. Otherwise, your loan will cost more. Jeremy

July 5th, 2005, 06:50	#10
kailuaboy Senior Member Join Date: Mar 2005 Location: CLE Posts: 302	Re: Key or Sallie Key bank told me that the forebearance lasts until you can offord it. So, if I only get one forebearance in my life time.... that sucks I did talk to two different people and they told me the same thing. That you can use the forebearance letter as many times as you need. I had to send in my finance information (tax returns, etc.). Ivan

July 5th, 2005, 11:54	#11
Merlin Junior Member Join Date: Dec 2003 Location: Dallas, TX Posts: 142	Re: Key or Sallie I could be wrong about the time limit--I may have misunderstood what they told me and I got mine under that impression. In any case, be careful using it, the amount of your loan grows the longer you don't pay on it. In other words, it's not free. Jeremy

July 6th, 2005, 19:19	#12
kailuaboy Senior Member Join Date: Mar 2005 Location: CLE Posts: 302	Re: Key or Sallie lol... yeah i know... but i dont have a choice right now... i need to pay priority bills first. ie. RENT, car insurance, food and gas. Ivan

July 10th, 2005, 14:50	#13
ERJ-135 Junior Member Join Date: Jul 2001 Location: USA Posts: 277	Re: Key or Sallie pscraig: "You're an independent contractor and pay tax on your own-15% of what you make. You may have deductions but most people end up with a huge tax bill the following year. How does this relate to loan repayment? Well, in retrospect I should have set aside maybe $100 a month towards taxes. There wasn't much to live on before, and even less with taxes considered." How do you cover the liability insurance if you are an independent contractor and with such low income?

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode