Financing Flight Training

[Jefu]

I know that everyone has a different opinion on this one, but I am really looking for some ideas here.

I decided to go back to college and finish off my degree. While looking at the catalog of classes I stumbled across their offering of an Aviation Management degree. I have kicked myself for years for not getting my PPL while I was in the Air Force and could have gotten it for basically free. So, now I am kicking the idea around of following the dream and changing to a career in aviation.

Now for the dilema, paying for the training. My initial thought was financial aid, but now I am being told that there are going to be additional costs that aren't going to be covered. I don't own a home so the home equity loan is out. I don't have any rich relatives so no luck there either. I have read a number of posts on here saying to avoid SLM and other private loans.

How did you pay for your flight training? Any suggestions? Any tips on what to avoid at all costs? Any and all help greatly appreciated.

[Michael95U]

Originally Posted by Jefu

I know that everyone has a different opinion on this one, but I am really looking for some ideas here.

I decided to go back to college and finish off my degree. While looking at the catalog of classes I stumbled across their offering of an Aviation Management degree. I have kicked myself for years for not getting my PPL while I was in the Air Force and could have gotten it for basically free. So, now I am kicking the idea around of following the dream and changing to a career in aviation.

Now for the dilema, paying for the training. My initial thought was financial aid, but now I am being told that there are going to be additional costs that aren't going to be covered. I don't own a home so the home equity loan is out. I don't have any rich relatives so no luck there either. I have read a number of posts on here saying to avoid SLM and other private loans.

How did you pay for your flight training? Any suggestions? Any tips on what to avoid at all costs? Any and all help greatly appreciated.

A lot of my students have gone through MyRichUncle or Next Student. It has been my observation that their interest rates are far less than SLM.

Michael

[surreal1221]

How could you have gotten your PPL in the Air Force for free?

From the school of my choice, SLM rates are from 10.5 to 13% (depending on Cosigner use, and individuals credit scores).

[PGA07]

those rates seem fairly high, especially if you are running with a good credit back ground. I would look around (if you have to finance it).

If it is at all possible try the pay as you go routine or put the flying on hold for a year or two. Then when the money is in the bank, find the flight school you like (better luck for this at an FBO) and discuss a block discount for your training if you dump the cash on their table. More time than not you will find that most will give you a break. Usually 5% but I found one that offered a 10% to 12% discount for block time if I did all of my training with them.

Quite a large savings when you think about it. The lost time will more than make up for it in the future when you can jump on a time building job that someone else had to turn down because it did not pay enough for them to live, let alone pay back financing.

Yes the aviation industry is on the rise for pilot hiring, yes we all want to start or advance our career as soon as possible. However, in NO way is financing your life away worth this or any other career for that matter. You will enjoy your training and your career when you are not worrying about those loans. Ask around here, you will find that many will agree!

What ever you decide, good luck and have fun!

[Jefu]

How could you have gotten your PPL in the Air Force for free?

When I was in, most bases had a number of small planes (Cessnas among others) that we could use for the flight training and didn't have to pay to use. A friend of mine and I decided to take them up on the offer, but did not have enough time to finish before leaving our training base. We decided to wait until we got to our first permanent base, but sadly they didn't have the planes there so we would have had to pay for the training at an off-base facility. I so wish I had just done what I could have at the training base and then finished up at the next place. Hind sight is still 20/20.

[Fly4Pay]

Originally Posted by Jefu

When I was in, most bases had a number of small planes (Cessnas among others) that we could use for the flight training and didn't have to pay to use. A friend of mine and I decided to take them up on the offer, but did not have enough time to finish before leaving our training base. We decided to wait until we got to our first permanent base, but sadly they didn't have the planes there so we would have had to pay for the training at an off-base facility. I so wish I had just done what I could have at the training base and then finished up at the next place. Hind sight is still 20/20.

Not QUITE 20/20, apparently... Those planes are called the "Aero Club", and cost about the same to fly as they do at an FBO. What you COULD have done (and may still be able to do, depending on the type of discharge you got and how recently) is use the GI bill (www.gibill.va.gov) to finance a significant portion of your training.

[Jefu]

What you COULD have done (and may still be able to do, depending on the type of discharge you got and how recently) is use the GI bill (www.gibill.va.gov) to finance a significant portion of your training.

No such luck, the GI bill benefits expire after 10 years and it has been far longer than that since I got out.

[Flying Ninja]

Originally Posted by Jefu

How did you pay for your flight training? Any suggestions? Any tips on what to avoid at all costs? Any and all help greatly appreciated.

If you're interested in aviation as a career, I'd start with saving a little money and see how you feel after training past your initial solo flight (about 10-20 hours). That should give you a pretty good indication as to if you have the interest and aptitude to continue. At the same time, it won't kill your bank account. If you do show interest in continuing, you're going to have to either bank up as much money as you can to pay out of pocket or take out a loan to finance the dream. Flight training is expensive. I for one have made a huge mistake going to one of these "elite training" programs (or so they say) and found myself into a huge debt.

Since it sounds to me like you don't have a lot of money, I'd seriously consider your financial future. Going into debt is not the best course of action here. Trust me, I know (paying a cool $1000 per month for the next 14 years). At the same time, it is a pretty rewarding experience to be able to fly. I don't know if it's rewarding enough to justify $1000/month for 15 years but...to each's own. Start with your initial training or even a few flight lessons to start. Your flight time that you log is yours forever. You might find that saving up for a year before delving into flight training is the financially wiser route to go. I definitely wouldn't do the pay as you go because one life incident and you could find yourself out of money for flight training and "training interuptus" is just not good for holding onto those skills airlines are interested in as disuse over time erodes very fast during initial training.

If you have any additional questions, please ask on this message board. There are plenty of experience here and you can usually find what you're looking for. Best of luck!

[killbilly]

Ninja....

Hadn't seen you post in a while.

Curious - with the time you have in your logbook, would you consider returning to flying now, given the greater opportunities and hiring?

[Flying Ninja]

Originally Posted by killbilly

Ninja....

Hadn't seen you post in a while.

Curious - with the time you have in your logbook, would you consider returning to flying now, given the greater opportunities and hiring?

Of course I'm considering the hiring potential. However, I'm trying to figure out how to save up $12,000 to cover my loan payments for a year considering the 1st year pay at the regionals is nothing but laughable and hardly survivable. I would need to be based out of NY to live with the folks in order to save on rent/crashpad to help pay the loan...this is not negotiable. That narrows my list of airlines available to me down to less than a handful. The other side of the story is, it's been a long time since I've even looked at any of this Part 121 regulations and my instrument knowledge is as rusty as a door nail. I'm also going into it on my own with the unfortunate fact that I have CAPT on my resume, which I would love to not put down, but there's no other way to explain the 2 year gap in my life otherwise; not to mention that DC-9 type rating that marks me as a CAPT graduate (which my friend has advised me not to request the FAA to remove). I have no one at CAPT to substantiate my laurels nor do I want any from them. In other words, I'm just another street pilot.

So who knows...of course I'd love to do it...but what I want and what I can afford (ironic I have to be able to afford to work) are two different things. But thanks for thinking of me.

P.S. I like your avatar. That show kicks!

[LAFF]

I struggle with justifying getting into aviation daily. I love to fly and would love to do it professionally. However, I'd be giving my a post retirement job that nets me a large salary and a QOL I will never see in aviation.

This is the most diffuicult decision I've ever faced. I'm unable to find a resolution. My heart says go for it...My mind says - take the cush engineering job and enjoy life.

I've decided to flip a coin...If its heads - aviation...If its tails - aviation.

<grin>

-LAFF

[killbilly]

Originally Posted by Flying Ninja

Of course I'm considering the hiring potential. However, I'm trying to figure out how to save up $12,000 to cover my loan payments for a year considering the 1st year pay at the regionals is nothing but laughable and hardly survivable. I would need to be based out of NY to live with the folks in order to save on rent/crashpad to help pay the loan...this is not negotiable. That narrows my list of airlines available to me down to less than a handful.

Off the top of my head, doesn't Colgan have a NY base? Or at least some bases which are really, really close?

The other side of the story is, it's been a long time since I've even looked at any of this Part 121 regulations and my instrument knowledge is as rusty as a door nail. I'm also going into it on my own with the unfortunate fact that I have CAPT on my resume, which I would love to not put down, but there's no other way to explain the 2 year gap in my life otherwise; not to mention that DC-9 type rating that marks me as a CAPT graduate (which my friend has advised me not to request the FAA to remove). I have no one at CAPT to substantiate my laurels nor do I want any from them. In other words, I'm just another street pilot.

So. Are you going to get current, and lube up those IFR skills?

P.S. I like your avatar. That show kicks!

Thanks for noticing. It's about due for a refresh, though. The avatar, I mean. The show starts up next week.

[subpilot]

Eagle can now guarantee a base and they have NY. You can also get current with IFR using a PC based flight simulator...and no I do not mean legally current.

[Flying Ninja]

Originally Posted by killbilly

Off the top of my head, doesn't Colgan have a NY base? Or at least some bases which are really, really close? So. Are you going to get current, and lube up those IFR skills? Thanks for noticing. It's about due for a refresh, though. The avatar, I mean. The show starts up next week.

There are a few regionals that have bases out of NY. I have to be out of NY for that first year or two. I just can't afford to do the job otherwise. Like LAFF said, it's a tough choice between a high paying job that affords me flying here and there vs. low paying job for a very long time. At my age, I'm more concerned about how I'm going to live after age 60 because I sure as hell won't have any money to retire on working for an airline (recall $1000/month for the next 14 years - life penalty fee). I've done the math and over the course of the next 20 years, assuming I get to the majors within 8 years, I will have given up over a million dollars in gross income by doing aviation as a career.

For now I'm working on polishing up the IFR skills and studying to be a competent pilot for me. If somehow I find myself interviewing at the regionals, I won't be disappointed or upset if they say no to me. At the end of the day I'll be content to say I tried and it didn't work out. I've been too beat up by the whole CAPT experience to feel excited about applying to airlines. If it happens, great. If not, great. Either way, I'll be flying.

[meyer336]

After serving nearly 9 years as a police officer and 5 years as an EMT, I decided it was time for me to again pursue my dream of aviation. I began looking at flight schools and started taking part-time flight lessons locally. I
knew I had to continue my education due to the fact I was not getting any younger. The airline industry has a mandatory retirement age of 60. So I began to research several options and decided to enroll at Ohio State University and obtain my degree in Aviation Management.

I resigned from my position as a part-time police officer and am continuing to work full-time on the weekends as an EMT as I am enrolled as a full-time college student. I also am taking flight training on the side part-time.

What I have been doing to finance my flight training is using the remainder of my student financial aid after the quarter is paid for and paying for my training that way. I am not taking my flight training through the college, I am flying through a local FBO at very good rates. I am flying a C-150 for $60 hr and $30 hr for instruction. I am currently at 36.7 hrs TT and my instructor is confident that I will be able to test at the 40 hour mark.

Roger

[TexasFlyer]

This might help for those of you looking for money to help pay for your training:

SLM LOAN (Sallie Mae - spelling?):
* Approved me for $30k which I took over 5 installments every 30 days.
* Repayment period is 15 years with payments around $335 a month.
* Interest rate is 10.5%
* Plus they charged a 2% fee on the money that is financed in.
* Repayment will not start for 10 months from thier first disbursement, but interest will build which is not cheap, but helps cash flow while in training.
* It is a variable rate of 2.25% above the Prime rate they use to calculate these at. They offer no fixed rate loans.
* This was approved without a co-signer.
* No early payment penalty.
* Took about 24 hours to be approved (I required $48k, but they only gave me $30k)


Just in case anyone needs further funds, or in my case a safety net if the $30k does not go far enough for me (running out of funds before you are done is not a place to be!).


BANK OF AMERICA:
* Approved me for a Personal Line of Credit for up to $25,000.
* Rate of 8.9% for up to a 6 year payback period on the funds.
* About a $450/month payback if use all $25,000.
* There is no grace period on funds.
* Being a Personal Line of credit, each time you take out money the repayment period starts back to a 72 month repayment period. So if cash flow becomes tough and your payment is $450/month in year 2, write a check to yourself for $100 and it will refinance the balance for 72 months again. The good is your cash flow will be better since your payment will drop. The bad is, the bank will love you since you'll pay out that interest for a much longer time.
* No early repayment penalty.
* You don't have to use this loan, it's simply a line of credit and there if you need it; and you access it by direct deposit into your own bank account.
* Good back-up fund if needed in the future.
* No co-singer was required to get this credit line.
* Applied online and had a decision in under 10 seconds.