Financing?

[ALPHA]

What are the financing options? Does the school help you out? How much is the price going up?

Thanks.

[Michael95U]

Originally Posted by ALPHA

What are the financing options? Does the school help you out? How much is the price going up?

Thanks.

The price quote in the previous thread is accurate.

Right now, we finance through either MyRichUncle or NextStudent in conjunction with UVSC. I am in the process of working something out with Sallie Mae, which would give students a third option unrelated to enrollment in UVSC.

Michael

[wildwezul1]

The UVSC ( Utah Valley State College ) Route for financing is a good way to go if you are serious about airlines. The airlines like to see at least a 2 year degree, from what I have seen. And all the money goes right to you so you can spend it the way you need to, on flight or school tuition. This is the route I am going and its working out well.

Contact your local bank as well and I believe AOPA has some options for its members too.

[Patrick]

It is certainly wise to evaluate all of your financing options, however, many students don't fully understand how much a change in interest rate changes both your payments, and the total amount that will be repayed to the lender.

One or two percent may not sound like much, but when its being applied to a $50k loan, it is a significant difference.

The financing through UVSC is very often as much more attractive rates than Sallie Mae or others, and is often well worth the added paperwork and time, as by the time you've paid it all back you've bascially recieved a free rating or two!

If anyone needs help evaluating financing options, feel free to contact me (I have a degree in Finance and used to work in the banking and investment brokerage world) as I'd be more than happy to help.

[ALPHA]

So in the long run is cheaper taking out a loan for flight training and UVSC?
I guess it wont be a bad idea to transfer my college credits to UVSC.


Thanks.

[Michael95U]

Originally Posted by ALPHA

So in the long run is cheaper taking out a loan for flight training and UVSC?
I guess it wont be a bad idea to transfer my college credits to UVSC.


Thanks.

From our experience, it is much more beneficial to go the UVSC route. The interest rates are much better.

Michael

[Ryan110175]

Is the UVSC route with the accelerated program funded by federal student loans? What if I already have me 4-year degree. Will I be denied a federal student loan since I'll be entering a program for an associates degree, when I already have a 4-year degree? But you're right, paying 3-5% is a lot cheaper over time than paying 9-12% on a smaller loan.

[Michael95U]

Originally Posted by Ryan110175

Is the UVSC route with the accelerated program funded by federal student loans? What if I already have me 4-year degree. Will I be denied a federal student loan since I'll be entering a program for an associates degree, when I already have a 4-year degree? But you're right, paying 3-5% is a lot cheaper over time than paying 9-12% on a smaller loan.

Is is a private loan program, so you will not be denied if you already have a 4 year degree.

Michael

[wildwezul1]

UVSC is an accredited college and will accept Federal student loans and Pell grants for the school aspect of it. But for the Flight school you will need to get the Private loans because the Feds dont like flight schools. but you should not be denied for student loans. They always like to further education.

[Ryan110175]

Does the private lender require enrollment into the UVSC program or is that just a Fed requirement, or does the private lender finance the training witout the degree program? It sounds like enrollment is required, but I'm just verifying.

[Michael95U]

Originally Posted by Ryan110175

Does the private lender require enrollment into the UVSC program or is that just a Fed requirement, or does the private lender finance the training witout the degree program? It sounds like enrollment is required, but I'm just verifying.

Enrollment as at least a part time student at UVSC is a requirement of the lender. The reason that interest rates are lower with our program in conjunction with UVSC (when compared to Sallie Mae financing) is that it is a better risk for the finance companies (Next Student and MRU) to loan $60k-$70k to someone who is taking college coursework as well as flight training. As I was told by reps from MRU, SM, and NS, students who take out loans JUST for flight training are at a higher risk of default vs. students who take college coursework in conjunction with their flight training. This is a dirty little secret that finance companies don't want you, the customer, to know.

[eagledriver101]

Dont you have to have an 800+ A++ Credit score to get any of these types of loans. What about ppl like me who have had some probs w/ their credit, mine is between 615-630... Ya I was 18 and thoughts credit cards were cool... anyway, we know how that goes. What are some options for ppl with not so good credit. The funny thing is I do have a rich uncle, very rich he is the CEO of Avery&Denis he makes like 1.2mil a year. But Nooooo he wont send me a check for 50k.... Seriously, though, my mother said she would be a co-borrow, but she wants to refiniance her house first, and that wont happen for another 6-12 months... BLAH!!! I am looking at grants and stuff.. but what are some options??

[Michael95U]

Originally Posted by eagledriver101

Dont you have to have an 800+ A++ Credit score to get any of these types of loans. What about ppl like me who have had some probs w/ their credit, mine is between 615-630... Ya I was 18 and thoughts credit cards were cool... anyway, we know how that goes. What are some options for ppl with not so good credit. The funny thing is I do have a rich uncle, very rich he is the CEO of Avery&Denis he makes like 1.2mil a year. But Nooooo he wont send me a check for 50k.... Seriously, though, my mother said she would be a co-borrow, but she wants to refiniance her house first, and that wont happen for another 6-12 months... BLAH!!! I am looking at grants and stuff.. but what are some options??

It IS possible to get financing, even with a past bankruptcy. Will Sallie Mae loan to you? Probably not. But in conjunction with UVSC, there is a very high probability of receiving financing from Next Student even if you have a very poor credit score/history.

Michael

[wildwezul1]

Originally Posted by eagledriver101

Dont you have to have an 800+ A++ Credit score to get any of these types of loans. What about ppl like me who have had some probs w/ their credit, mine is between 615-630... Ya I was 18 and thoughts credit cards were cool... anyway, we know how that goes. What are some options for ppl with not so good credit. The funny thing is I do have a rich uncle, very rich he is the CEO of Avery&Denis he makes like 1.2mil a year. But Nooooo he wont send me a check for 50k.... Seriously, though, my mother said she would be a co-borrow, but she wants to refiniance her house first, and that wont happen for another 6-12 months... BLAH!!! I am looking at grants and stuff.. but what are some options??

My credit was 618 and I got a 57k loan with MyRichUncle.com for this school and UVSC with a co signer. ( course I dont know how much I could have gotten alone. I didnt try) but then again thats what family is for.... to co sign college loan paperwork

[killbilly]

Originally Posted by wildwezul1

My credit was 618 and I got a 57k loan with MyRichUncle.com for this school and UVSC with a co signer. ( course I dont know how much I could have gotten alone. I didnt try) but then again thats what family is for.... to co sign college loan paperwork

What kind of interest rate and payment terms did you get?

[Michael95U]

Originally Posted by killbilly

What kind of interest rate and payment terms did you get?

8.2% was his interest rate. (He just walked in to go fly.)

[cignaguy]

Originally Posted by MichaelCPS

8.2% was his interest rate. (He just walked in to go fly.)

Just remember, there is more to financing than just the interest rate. Read the fine print for other fees that will eat you alive.

[wildwezul1]

Originally Posted by cignaguy

Just remember, there is more to financing than just the interest rate. Read the fine print for other fees that will eat you alive.

With this kinda loan there really isnt much hidden. it cost me less 1,500 in fees for a 57k loan with MRU. with Next Student I got quoted well over 3000 or something for a 57k loan. ( I dont remember the number )

[Cazadores]

Originally Posted by Ryan110175

Is the UVSC route with the accelerated program funded by federal student loans? What if I already have me 4-year degree. Will I be denied a federal student loan since I'll be entering a program for an associates degree, when I already have a 4-year degree? But you're right, paying 3-5% is a lot cheaper over time than paying 9-12% on a smaller loan.

Shame no one seems to offer a masters program in conjunction with a training opportunity like this....

[Michael95U]

Originally Posted by Cazadores

Shame no one seems to offer a masters program in conjunction with a training opportunity like this....

I have been pleading with UVSC for a while for such a program.

Michael

[Patrick]

I agree. A master's program in something aviation related combined with flight training would surely be a great benefit to many of us.

Patrick

[bike21]

I'm gonna come right out and say don't finance more than 15K if you can help it. Take it from someone that went the full finance route for flight training and now loathes paying that loan back each month.

All to fly a shiny jet and be away from home for about 3 weeks of the month. Keep in mind this bit of advice is coming from a soon to be captain that will be making "the big bucks"

Take it for what its worth. It isn't worth the hardship of a ~$800 a month payment that you can barely afford to pay back. Use loans sparingly and work while in flight training to offset your costs.

[wildwezul1]

Originally Posted by bike21

I'm gonna come right out and say don't finance more than 15K if you can help it. Take it from someone that went the full finance route for flight training and now loathes paying that loan back each month.

All to fly a shiny jet and be away from home for about 3 weeks of the month. Keep in mind this bit of advice is coming from a soon to be captain that will be making "the big bucks"

Take it for what its worth. It isn't worth the hardship of a ~$800 a month payment that you can barely afford to pay back. Use loans sparingly and work while in flight training to offset your costs.

Every loan has its risks, but with out loans like these most of us would not be able to go after our goals. Already doing our homework, we know that Fo at regionals dont make a whole lot. there are always pros and cons to go one route or the other.

But remember most people are not wealthy enough to pay for flight training with out financing of somesort.

[bike21]

Originally Posted by wildwezul1

Every loan has its risks, but with out loans like these most of us would not be able to go after our goals. Already doing our homework, we know that Fo at regionals dont make a whole lot. there are always pros and cons to go one route or the other.

But remember most people are not wealthy enough to pay for flight training with out financing of somesort.

Well said. I 'may' have a been a little grumpy when typing that post, but nonetheless it is damn hard to pay back a $50,000 loan (not including interest) while cutting your teeth as a CFI or new hire FO. Especially if you have any financial burdens such as college loans, credit card, car payment etc.

I am not trying to hurt your business - but I feel it is my duty to paint a realistic perspective on what loans can do and the risk factors. We live in a debt-ridden society and a 20 year old guy won't blink twice at signing the dotted line. I didn't - should have though.

[wildwezul1]

Originally Posted by bike21

Well said. I 'may' have a been a little grumpy when typing that post, but nonetheless it is damn hard to pay back a $50,000 loan (not including interest) while cutting your teeth as a CFI or new hire FO. Especially if you have any financial burdens such as college loans, credit card, car payment etc.

I am not trying to hurt your business - but I feel it is my duty to paint a realistic perspective on what loans can do and the risk factors. We live in a debt-ridden society and a 20 year old guy won't blink twice at signing the dotted line. I didn't - should have though.

I agree.. and we let them know that its a big step, and we expect the student to have done their homework.. How much payments will be and how much they can afford. along with how much starting pay is at the Airlines ( common knowledge on websites)

If you cant get by for a few years squeaking by then you shouldnt do it. I took out enough to pay off all my debt, including my car. so basicly I consoladated, and suggest everyone to do that.. but its whats best for the individual student.