student loan worries

[greaper007]

Originally Posted by wheelsup

I consolidated my federal loan with citibank with a for-life interest rate of 3.25%, and it'll drop to 3.00% in the next few months when I get my discount for making on time payments. This was almost two years ago however.

That sounds like an even better plan than saving completely for your training. I don't think financing is a bad option if you have some means of paying the monthly bill in the near future, and the interest rate is reasonable.

[Cruise]

I'm curious......

Has anyone had luck w/ Federal loan consolodation and Key Bank loans. It would be great to get rid of the "variable" rate of the Key loan. To see the Key loan up to 7.5% and climbing is very scary indeed.

[NW004]

Since we're in the subjet, can you guys tell me what you think about my plan"

Join the Navy on 4yr Contract, Save all of the money i make on the Navy, spend only 10% of it. This will add up to around 30K after the 4 years, and use that money with the GI Bill to get flight training. What do you guys think?


The Airlines are my dream, but i'm not willing to go broke over them, which is why i developed this little plan.

[wheelsup]

Originally Posted by NW004

Since we're in the subjet, can you guys tell me what you think about my plan"

Join the Navy on 4yr Contract, Save all of the money i make on the Navy, spend only 10% of it. This will add up to around 30K after the 4 years, and use that money with the GI Bill to get flight training. What do you guys think?


The Airlines are my dream, but i'm not willing to go broke over them, which is why i developed this little plan.

You'd only be able to save $30k in 4 years while saving 90% of your post-tax salary? It has to be more than that. I live in Virginia Beach and there are sailors all over my apartment complex driving BRAND NEW Mercedes, BMW's, Audi's, Navigators, etc. They're young too.

$30k/4 years = $7500/year
Spending 10%, that means you're brining in only $8333 after tax/year. At that tax bracket, you're looking at $12,000/yr gross pay. That seems low, even for the enlisted military.

[greaper007]

Originally Posted by wheelsup

You'd only be able to save $30k in 4 years while saving 90% of your post-tax salary? It has to be more than that. I live in Virginia Beach and there are sailors all over my apartment complex driving BRAND NEW Mercedes, BMW's, Audi's, Navigators, etc. They're young too.

$30k/4 years = $7500/year
Spending 10%, that means you're brining in only $8333 after tax/year. At that tax bracket, you're looking at $12,000/yr gross pay. That seems low, even for the enlisted military.

I think he's about right. During my short stint in the Marines, we were payed as Sgt's while in OCS. We got about 1400 a month. The military doesn't really pay well, you just don't have to pay for much. However, I'm sure that you can lease a 30,000 car on 1400 a month if you don't have any other expenses.

[NW004]

I'm going in as a E-3 because of my High School NJROTC, so i'd get paid 1500 dollars a month. 30K is the minimun i'm willing to save. I'm very serious about making it to the airlines.

[88MPH]

Hey NW004, I am in the Air Force enlisted right now, and if it hasn't been pointed out yet, DONT pass up the GI bill! I have been saved from paying a TON of $$$. I did have to pay for it up front, (with loans) but the checks I get back from the VA go straight to Sallie Mae! Believe me, it is a major gift!

I had to pay for the PPL out of pocket (went with C-150 and studied my BUTT off to keep $ down). But after that my Inst/Comm were 60% off! I have done all my training on my off time while enlisted.

I don't know what your plans are (ATP, Ari-Ben, FSA, etc.) but this is just my experience.

[NW004]

I want to fly as much as i can while enlisted, probably aero clubs, and use my GI BILL to go to college, i dont know which one yet, i want to go for Aeronautical Science or Radio Broadcasting, one of the two, i'm probably only getting an Associates, i'm not very sure about what college and what i want to take classes for. In the Navy i will be an Avionics Technician, which should be lots of work, but lots of fun.

[88MPH]

I always thought it'd be cool to have an aero club aboard a carrier! Imagine 3 cessnas rising from underdeck! You'd just have to watch out for the catch wires!!!

[Diamnd15]

well has anybody had anyluck getting their variable rate key bank loan to fixed rate...? i just talked to them and the rate it at about 8 percent now and thats about ten dollars a day adding to my loan. anybody help or advise

[Flying Ninja]

Originally Posted by Diamnd15

anybody help or advise

Yeah, leave the country...that's my next step in running away from my $100K debt.

[notawannabee]

Originally Posted by Flying Ninja

Yeah, leave the country...that's my next step in running away from my $100K debt.

you could also jump in a plane, rip out the transponder, and chart a course and altitude out of radar to another country.

a little off subject, but it reminds me of the program " masterminds" on history channel (?).....this guy turns his piper seminol into a flying fuel tank ( to transport drugs) to fly outside of Florida's radar system. He flew way out in the Atlantic...then got up close to PA and turned home. Actually, he may have went up to Nova Scotia and turned back south.

[SharkFisher]

B767driver, SteveC, Kristy and all the others who were opposed to borrowing money I thank you for your input. I was nodding my head all along. As of this week, I am done with junior college and transfering to a 4 year college to complete my bachelors in 2 more years. As of now, I have 0 debt and I've been paying off by working part-time. Junior college only cost me around 2K a year, but starting from the fall it will be 5X the amount. Despite, after reading this forum, I think it's wise not to even borrow government loans. I am seriously considering taking less credits per semester so I can afford to pay for it. Also if I took summer classes to make up for what I missed, I can even my year out. As for flight training, a person in my situation, should not even think about it right now.

[atpwannabe]

I still owe money on my student loan from Riddle. Poor financial management for a little while there; however, I plan on rolling the remaining principal into my new mortgage when we build. Off the bat, I will save thousands in interest.

You may want to check out www.newhomes.com if you are planning on buying a new home. Brand new construction homes, 4/3/2 for as little as 150K. It's a no brainer to me. Our plans are to build in either NC or TN. I'll just have to commute, if I'm not based in one of those states.


atp

[LoadMasterC141]

Hey NW004,
Have you considered becoming a military pilot? Did I miss that you are unqualified or something? Save yourself alot of money and headache. Military flying can be more rewarding than airline flying (So I hear. Certainly cannot speak from experience). Don't believe anyone that tells you an airline doesn't hire military trained pilots first.

My cousin just finished a 10 year commitment to the AF as an A-10 pilot. He was offered a huge amount to stay in for another 10, I wanna say around 200K, but not sure. He is taking it becuase he loves the Hog.

Anyway....Just wondering.

[88MPH]

I totally agree with LoadMaster. I would LOVE to fly even the whiny little T-37s for 10 years in the military, not have the headache of debt (sounds odd, but military headache isn't as bad as debt!), and getting a tonna hours for jobs down the road if I didn't wanna stay in!

It'll give you ALOT more than flying skills too! Sure there's down sides, but its damned secure, and they're SURE to take care of your family, if applicable.

[BugSmasher]

Originally Posted by Flying Ninja

My plan right now is to get back into my previous career and start making money again. My primary concern is being able to pay my monthly loan payments and I'd like to pay more each month to keep the loan down. On top of that, I have my college loan I have to pay, and then the cell phone, car, etc. So at the end of the day, I'll have very little money as I do want to put money toward my retirement since I haven't contributed in 2 years.

I am going to start reading on the whole CFI thing on my spare time, but it will have to be an absolutely cost free effort. At some point later in life, when I have disposable income, which, who knows when that will be, I will hook up with my CFI here in NY and go for it. It's a long road. But that is my plan. As for going into the regionals, I'm chalking it up as a failure. Maybe when these VLJ air taxis start getting popular I may have a shot at them. But that's all forward looking.

FlyingNinja, I've been reading some of your posts, and your experience at CAPT is definately food for thought for those considering 80K-100k loans. For that it seems like you should have been at least able to get your MEI.

Have you considered using the knowledge gained through your Comm ticket to get into AIG or another aviation insurance company as an Underwriter?
I ask b/c my brother (CFII 400TT) worked at CAPT after graduation from Riddle (in a non-managerial aviation-related office role), left, immediately got an Underwriting gig w/out any insurance industry exp and w/out connections, and less than one year later he's an insurance broker - beginning to pay off his (also 100K +) debt quickly and getting to fly (and NETWORK) as part of his job. Might be an option....

FWIW, this seems like a good aviation-related gig for folks who are overloaded w/ debt - or who lost their medical.