Loan Question

LoadMasterC141 · January 8th, 2007, 13:36

Lets' say I took out the full $45k in an SLM loan to do the ACPP. Then, a month later I want to pay it off. I am a bit confused on all the "origination fees" and such. What would the payoff be?

My folks are selling their home in the next year, and it is worth a LOT more than they paid for it 18 years ago. They will have alot of extra cash and have agreed to pay my loan off and offer me a small percentage rate loan.
If the payoff was the same as I borrowed, minus a small small principle decution(Sure that 99% is going to interest at first) then it would be a worthwhile endeavor.

RFC1873 · January 8th, 2007, 14:36

Why not wait until your parents have sold the house and avoid having to take out a loan. I have been looking into taking out a loan for training and I am trying to avoid Sallie Mae if at all possible.

LoadMasterC141 · January 8th, 2007, 14:43

Either way it is a loan. My parents are not giving me the money, just giving me a cheap percentage rate. I would never ask my parents to just "give" me that kind of money.

Secondly, I am not in a position to wait around until they sell the house.

Lastly, it was a somewhat hypothetical situation. If I personally took out a loan, the ABSOLUTE most it would be for is $35k.

The question is, If I take out a loan with SLM, do I owe more than that loan due to other applied fee's/interest if I were to pay it right off?

Captain_Bob · January 8th, 2007, 15:11

LM... Give the ATP 800 number a call and ask to speak to someone in finance.

They will know better... however... there are typically lot's of fees just for starting the SLM loan... (application fees, origination fees, document fees, etc...) But, as far as I know... there is no early pay-off penalty.

Here's an idea that I'm hashing out... maybe try to find a local lender (maybe your own credit union/bank) and get yourself a lower rate/shorter term loan through them. That can save lots of fees that SLM has... and even though your payments will initially be higher... it won't matter after your parents' house sells. That could possibly save a grand or two in SLM fees.

Anyway... somthing to think about. But seriously... the finance folks at ATP will have a lot more answers for you... including maybe some options other than the SLM monster.

Bob

LoadMasterC141 · January 8th, 2007, 15:22

Will do Bob. It is about time to start scheduling the location visit and interview anyway.

avi8tor1983 · January 8th, 2007, 18:47

If you go into the financing page on ATP's website you will see there is additional 3 something thousand for check rides and stuff. Your total comes to 48365 I belive instead of the 45K. Just a little side note I thought you should know. I am going to be interviewing at GKY(Arlington) on the 11th. I will let you know how it goes.

SpiraMirabilis · January 9th, 2007, 15:19

Sallie Mae charges like almost 5% fee just for offering you the credit, its crazy. A couple thousand dollars that they add onto your loan princaple. So you'd have to pay it off too.

LoadMasterC141 · January 9th, 2007, 16:22

Yeah that is what I thought I read somewhere else. It is crazy. I wonder if NextStudent or MyrichUncle.com do that. Though I have seen they want you enroll in two course at UVSC to be eligible for the NextStudent thing, so that may be a bunch of extra cash, and time, as well.

SpiraMirabilis · January 9th, 2007, 17:18

You've already got your BS I recall, was it from University of Penn? Well, regardless you could "enroll" and simply take one or two aviation courses "towards" a bachelors degree you never actually intend to complete. Apparently the aviation classes are easy while the general education classes are ball busters.

LoadMasterC141 · January 9th, 2007, 20:18

Yeah I do have my BS already, but I guess I could do as you mentioned. However, I wonder how much the classes cost. It might be just as expensive to take those courses as it would for an SLM origination fee or whatever.

I still have not explored all my options. Part of me does not want to take money from my folks either, even if it is still a loan. I have never taken a red cent from them and am kinda proud of that.

I have only had my house for 18 months, so I do not think there is enough there for a second mortgage/home equity loan, but then I don't know for sure yet either. I was gonna sell my house before going to ATP though. We could afford to keep it, but the margin is smaller and I would have to wait an extra 3 months to save up more.

SpiraMirabilis · January 10th, 2007, 09:59

$150/credit hour

eastbayk · January 10th, 2007, 10:26

What about your parents getting a home equity loan on your behalf and then lending you the money. They can pay it back out of the proceeds of their house sale and you can pay them back on a schedule. You might even be able to give them a portion of it from the proceeds of your own home sale. I'm not sure if a HEL will have the same origination fees as a school loan. If you shop around, you might be able to find a good deal, esp. if they know they will be able to pay it off quickly. That way you can avoid Sallie Mae all together.

We ended up using a Home Equity Line of Credit that we then paid off when we sold the house to pay for training. No defered payments, but we were able to make it work.

My opinion on borrowing from parents is that if they are willing to lend you the $ at a lower interest rate then you can get anywhere else and you are both able to treat it like a business deal (ie- actually paying it off on time and not letting hard feelings or acrimony develop) then why not? It's a smart business decision to get the money at the cheapest rate available. If that happens to be your parents, then so be it. But it will only work if you can keep the financial transaction from bleeding over into the "family" aspect of the relationship.

Kim

ccummins · January 10th, 2007, 12:35

You might have seen my post earlier, but I got approved through NextStudent, then applied at MyRichUncle.com, and got a lower % rate, and a lower fee(half of what NS was charging me). Later found out that NS & MRU are both run by Doral Bank. Might be something to look into. Good Luck!

Chris

Airdale · January 10th, 2007, 21:12

Think long and hard before you take out a loan - anywhere. Its a huge amount of money and that payment isn't going to disappear for awhile being a pilot. I went broke instucting at ATP. That loan payment will kill you. All I'm saying is really think about it. I'll be thinking about it for the next 15 years while I write that check every month. If I knew I'd be where I'm at today before taking out that loan, I wouldn't have done it.

January 8th, 2007, 13:36	#1
LoadMasterC141 Old Skool Join Date: May 2006 Location: Live in Temple, TX - From Ithaca, NY - Wish I was on an island in Fiji Posts: 1,912	Loan Question Lets' say I took out the full $45k in an SLM loan to do the ACPP. Then, a month later I want to pay it off. I am a bit confused on all the "origination fees" and such. What would the payoff be? My folks are selling their home in the next year, and it is worth a LOT more than they paid for it 18 years ago. They will have alot of extra cash and have agreed to pay my loan off and offer me a small percentage rate loan. If the payoff was the same as I borrowed, minus a small small principle decution(Sure that 99% is going to interest at first) then it would be a worthwhile endeavor.

January 8th, 2007, 14:36	#2
RFC1873 Junior Member Join Date: Mar 2006 Posts: 62	Re: Loan Question Why not wait until your parents have sold the house and avoid having to take out a loan. I have been looking into taking out a loan for training and I am trying to avoid Sallie Mae if at all possible.

January 8th, 2007, 14:43	#3
LoadMasterC141 Old Skool Join Date: May 2006 Location: Live in Temple, TX - From Ithaca, NY - Wish I was on an island in Fiji Posts: 1,912	Re: Loan Question Either way it is a loan. My parents are not giving me the money, just giving me a cheap percentage rate. I would never ask my parents to just "give" me that kind of money. Secondly, I am not in a position to wait around until they sell the house. Lastly, it was a somewhat hypothetical situation. If I personally took out a loan, the ABSOLUTE most it would be for is $35k. The question is, If I take out a loan with SLM, do I owe more than that loan due to other applied fee's/interest if I were to pay it right off?

January 8th, 2007, 15:11	#4
Captain_Bob Old Skool Join Date: Apr 2003 Location: DFW, based in ONT, wishing I was in Maine Posts: 3,869	Re: Loan Question LM... Give the ATP 800 number a call and ask to speak to someone in finance. They will know better... however... there are typically lot's of fees just for starting the SLM loan... (application fees, origination fees, document fees, etc...) But, as far as I know... there is no early pay-off penalty. Here's an idea that I'm hashing out... maybe try to find a local lender (maybe your own credit union/bank) and get yourself a lower rate/shorter term loan through them. That can save lots of fees that SLM has... and even though your payments will initially be higher... it won't matter after your parents' house sells. That could possibly save a grand or two in SLM fees. Anyway... somthing to think about. But seriously... the finance folks at ATP will have a lot more answers for you... including maybe some options other than the SLM monster. Bob __________________ My head is in the clouds and my heart is still in Maine... but my devotion and love belong to my wife and children. Pics!

January 8th, 2007, 15:22	#5
LoadMasterC141 Old Skool Join Date: May 2006 Location: Live in Temple, TX - From Ithaca, NY - Wish I was on an island in Fiji Posts: 1,912	Re: Loan Question Will do Bob. It is about time to start scheduling the location visit and interview anyway.

January 8th, 2007, 18:47	#6
avi8tor1983 Junior Member Join Date: Nov 2006 Posts: 51	Re: Loan Question If you go into the financing page on ATP's website you will see there is additional 3 something thousand for check rides and stuff. Your total comes to 48365 I belive instead of the 45K. Just a little side note I thought you should know. I am going to be interviewing at GKY(Arlington) on the 11th. I will let you know how it goes.

January 9th, 2007, 15:19	#7
SpiraMirabilis Senior Member Join Date: Jun 2006 Posts: 1,244	Re: Loan Question Sallie Mae charges like almost 5% fee just for offering you the credit, its crazy. A couple thousand dollars that they add onto your loan princaple. So you'd have to pay it off too.

January 9th, 2007, 16:22	#8
LoadMasterC141 Old Skool Join Date: May 2006 Location: Live in Temple, TX - From Ithaca, NY - Wish I was on an island in Fiji Posts: 1,912	Re: Loan Question Yeah that is what I thought I read somewhere else. It is crazy. I wonder if NextStudent or MyrichUncle.com do that. Though I have seen they want you enroll in two course at UVSC to be eligible for the NextStudent thing, so that may be a bunch of extra cash, and time, as well.

January 9th, 2007, 17:18	#9
SpiraMirabilis Senior Member Join Date: Jun 2006 Posts: 1,244	Re: Loan Question You've already got your BS I recall, was it from University of Penn? Well, regardless you could "enroll" and simply take one or two aviation courses "towards" a bachelors degree you never actually intend to complete. Apparently the aviation classes are easy while the general education classes are ball busters.

January 9th, 2007, 20:18	#10
LoadMasterC141 Old Skool Join Date: May 2006 Location: Live in Temple, TX - From Ithaca, NY - Wish I was on an island in Fiji Posts: 1,912	Re: Loan Question Yeah I do have my BS already, but I guess I could do as you mentioned. However, I wonder how much the classes cost. It might be just as expensive to take those courses as it would for an SLM origination fee or whatever. I still have not explored all my options. Part of me does not want to take money from my folks either, even if it is still a loan. I have never taken a red cent from them and am kinda proud of that. I have only had my house for 18 months, so I do not think there is enough there for a second mortgage/home equity loan, but then I don't know for sure yet either. I was gonna sell my house before going to ATP though. We could afford to keep it, but the margin is smaller and I would have to wait an extra 3 months to save up more.

January 10th, 2007, 09:59	#11
SpiraMirabilis Senior Member Join Date: Jun 2006 Posts: 1,244	Re: Loan Question $150/credit hour

January 10th, 2007, 10:26	#12
eastbayk Junior Member Join Date: Aug 2006 Location: Jacksonville, FL Posts: 160	Re: Loan Question What about your parents getting a home equity loan on your behalf and then lending you the money. They can pay it back out of the proceeds of their house sale and you can pay them back on a schedule. You might even be able to give them a portion of it from the proceeds of your own home sale. I'm not sure if a HEL will have the same origination fees as a school loan. If you shop around, you might be able to find a good deal, esp. if they know they will be able to pay it off quickly. That way you can avoid Sallie Mae all together. We ended up using a Home Equity Line of Credit that we then paid off when we sold the house to pay for training. No defered payments, but we were able to make it work. My opinion on borrowing from parents is that if they are willing to lend you the $ at a lower interest rate then you can get anywhere else and you are both able to treat it like a business deal (ie- actually paying it off on time and not letting hard feelings or acrimony develop) then why not? It's a smart business decision to get the money at the cheapest rate available. If that happens to be your parents, then so be it. But it will only work if you can keep the financial transaction from bleeding over into the "family" aspect of the relationship. Kim __________________ "If it has boobs or wheels, sooner or later you're going to have trouble with it" Life as the wife of a pilot who can't fly- http://ohthelifeofapilotswife.blogspot.com/

January 10th, 2007, 12:35	#13
ccummins Newbie Join Date: Dec 2006 Posts: 9	Re: Loan Question You might have seen my post earlier, but I got approved through NextStudent, then applied at MyRichUncle.com, and got a lower % rate, and a lower fee(half of what NS was charging me). Later found out that NS & MRU are both run by Doral Bank. Might be something to look into. Good Luck! Chris

January 10th, 2007, 21:12	#14
Airdale Old Skool Join Date: May 2005 Location: Dirty Jerzey Posts: 2,087	Re: Loan Question Think long and hard before you take out a loan - anywhere. Its a huge amount of money and that payment isn't going to disappear for awhile being a pilot. I went broke instucting at ATP. That loan payment will kill you. All I'm saying is really think about it. I'll be thinking about it for the next 15 years while I write that check every month. If I knew I'd be where I'm at today before taking out that loan, I wouldn't have done it.

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