Paying back loans

[BillH]

Well, for those that are thinking about getting a loan to go to ATP, just let me give you some food for thought on the matter.
I attended ATP back when the price was 44,000$. My loan worked out to be 52,000$ for the examiner fee's and a little bit extra for cost of living expenses. My loan is also a variable interest rate and when I first got it, it was around 11% interest. Now I guess I can thank the bad economy for reducing my interest rate down to 5%.

I don't have to pay off my loan yet, but I am to reduce the interest it is collecting.
I make between 25 to 27$ an hour and can usually work as many hours as I want in a week to the point that I am killing myself. So I am making much more than a regional airline F.O. starting out. My rent is about 500$ a month, and some extra for food and gas. I live right next to the airport and drive a little 4 cylinder Toyota pickup truck that sips the gas.
This damn loan was costing me 8$ a day in interest.
Every paycheck, the majority of it goes to Sallie Mae. Last paycheck, over 1000$ went to it. I started ATP in June 2007, graduated day before thanksgiving. So in this short period of time, over 3,000$ accrued in interest. I am happy to say now that I have knocked out the interest and took another 2,000$ off the capital that I owe, so I am now down to 50,000$ owed.
So I am able to pay this off just fine, just not able to buy myself any toys.
So for you new guys who want to go to ATP, your loan will be closer to 70,000$, and if you go to a Regional who will pay you half of what I make instructing, AND have to live somewhere where your cost of living is way more than 500$ a month, how the hell are you going to be able to afford this loan? Not to mention that hiring has slowed way down and well guess what? Everyone wants to be a CFI again!
Just something to ponder...

[matt152]

Originally Posted by BillH

Every paycheck, the majority of it goes to Sallie Mae. Last paycheck, over 1000$ went to it.

If you don't mind my asking, what is the term of the loan? $1,000 a month sounds like you have a 5 year term.

[stillageek]

I will second good luck paying it off. It can be done...but be super realistic with money built in for "WTF's" and what not. As much as I love the view from FL390, it's not worth my QOL and marriage.

[meyers9163]

Originally Posted by matt152

If you don't mind my asking, what is the term of the loan? $1,000 a month sounds like you have a 5 year term.

5 year is unlikely. I only have about 30k in debt with my flight training and pay around $450 a month. And its 15 years. Most are 15 year terms. Just how it typically works. Same as for college loans.

[matt152]

Originally Posted by meyers9163

5 year is unlikely. I only have about 30k in debt with my flight training and pay around $450 a month. And its 15 years. Most are 15 year terms. Just how it typically works. Same as for college loans.

$60,000 at 5% is roughly $1000 month for a 5 year term.

My college loans come to about $150 over a 20 year term.

What works depends on what you get.

[meyers9163]

Originally Posted by matt152

$60,000 at 5% is roughly $1000 month for a 5 year term.

My college loans come to about $150 over a 20 year term.

What works depends on what you get.

Let me do some quick math for you. My flight loan (the 1st one) is through sallie mae. Fixed at 7%. I barrowed 22k. At 15 years and 7 percent I pay 250 a month for one small loan. This amounts to over $45000 once repaid in full.

Now when you are speaking of my other loads they are also over 15 years. Thus doing some basic math.

Thus if you are doing ONLY 60k and you have a FIXED rate at 7% (which is hard to get, most got 11-14% due to them being unSECURED loans) you are paying $540 a month for that one loan. Now if you put into that equation what people really are paying in APR (typically 11% with great credit) you are speaking on that same loan paying around $700 a month. Now this isnt with any fees, deferrments etc. This is just a basic look at how much these loans turn out to be.

Now throw a car payment on it, a college (fixed rate loan) debt you could easily be upwards of 1500-2000 a month in bills for just the loans, car payment and rent.

Now the RARITY that you got 5% on your unsecured flight loan. You are speaking in 5 years a repayment of 1200 a month. If you think those numbers are fudged look them up at Bankrate and doing a basic calculator function.

[matt152]

Originally Posted by meyers9163

Let me do some quick math for you.

I'm not debating the logic of your math. The OP said he was paying $1000 per month on his $50,000 loan.

[Kalikiano]

a little off topic but 25-27/hour and you can work as much as you want wow.

My ex-stepdad told me years back if I got a degree in electrical engineering he would start me at $25/hour under him at Phillip Morris.

What kind of flight school do you work at because I wouldn't mind something like that while I build hours or weigh my options before I jump on a regional once Im done at ATP.

I dont know how well CFI's get paid but just from figuring out a CFI at ATP making 2000/month and possibly 400 in bonuses that is only like 13-14/hour

[BillH]

Much longer than 5 years, my monthly payments are 300 something, I am just paying this puppy off as quickly as I can.

[Derek@JJS]

BILL!!!!!!!!!!!

Its DUDE!!!!!!!!!!!!!


Whats up man! congrats on ATP! where are you working now!!! Ratings?

[SatelliteBeachPilot]

Originally Posted by Kalikiano

a little off topic but 25-27/hour and you can work as much as you want wow.

My ex-stepdad told me years back if I got a degree in electrical engineering he would start me at $25/hour under him at Phillip Morris.

What kind of flight school do you work at because I wouldn't mind something like that while I build hours or weigh my options before I jump on a regional once Im done at ATP.

I dont know how well CFI's get paid but just from figuring out a CFI at ATP making 2000/month and possibly 400 in bonuses that is only like 13-14/hour

yeah, but you are getting more multi time then you can anywhere else.

[BillH]

Originally Posted by Derek@JJS

BILL!!!!!!!!!!!

Its DUDE!!!!!!!!!!!!!


Whats up man! congrats on ATP! where are you working now!!! Ratings?

Derek Dude!!!!
Well I got all my ratings and instructing down in Miami. Not with ATP.
How's ATC coming along?

[Flying Accountant]

This is why I became an accountant first before doing flight training. I saved every dime until I had enough on my own. Yeah..I ate PB&J sandwiches for a bit...but it was all well worth it and no loans to worry about. I did all my training at an FBO and did so in a timely manner.

[jspeed87]

I'm 21 single and live with mum and dad! So lets say I make 1800 a month as a FO. 1000 can go towards my loan i'm left with 800 to play with

[SpiraMirabilis]

Originally Posted by stillageek

I will second good luck paying it off. It can be done...but be super realistic with money built in for "WTF's" and what not. As much as I love the view from FL390, it's not worth my QOL and marriage.

Do you still have that easy button? :P It took me a while to realize who you were.