Should I suck it up?

[Dreampilot]

Hey guys,

Should I just suck it up and get a loan for training? I am very worried about the future of training and am starting to realize, maybe I should just take out a loan to cover it. Debt is bad but it wont last forever. I want to get on now and get hired before they stop hiring. Will someone please tell me first hand who took out a loan for the whole amount and how they are living now? Regrets? No regrets?. Just need some advice.

[Murdoughnut]

I would think that depends on a couple of things - namely:

1) How big of a loan? I would really think that anything over $30k is going to be pretty cost prohibitive. It depends on your finances of course, but I might speak with a financial adviser, or someone at your bank to determine what your limit should be.

2) Existing debt - Any existing debt should probably be taken into consideration when figuring the number above.

3) Family situation - i.e., are you responsible for the well-being of others? It's one thing to take out that kinda loan when you're single an unattached, but if you have a wife and kids, you're going to have to think about how that affects them.

4) Other options - think long and hard about these. I understand the need to have instant satisfaction, but that's not always feesible. I have partial ownership of a 172 which I fly 3-6 hours a month. Not the quickest way to build time, but it requires no debt.

Hope that helps - good luck with your decision!

[falconvalley]

If you don't have a family, try what I did. Work a fulltime job + a parttime job with some good hours. I delivered pizza. It's really good because people always want pizza. You get minimum wage plus tips and sometimes you get a commission for the use of your car. Use your freetime for studying and lessons. If you must take out a loan, try taking out small loans to help you through the most difficult parts of your training that require alot of attention and the most flying to stay sharp. I took out 2 5k loans over the years. One helped me finish my instrument and start my commercial and the other helped me work on my CFI. You don't have to finish your training on less than a year, in fact I don't recommend that. Finishing your training over two years is plenty fast enough and you can even try to enjoy yourself a little. I got my private in '98 and got my commercial in '00. I wouldn't change a thing. I loved learning to fly. It had been a dream of mine since I was a little boy and I was taking a second try at it. Try to enjoy it, man.

[Dreampilot]

After reading through posts, I came across a post from B767driver and he totally changed my outlook on loans. Loans can really stop you from doing other things you enjoy besides aviation. I really value everyone's opinion on this board and really do consider what everyone has to say. I hope this thread continues because I'm sure not the only one that is thinking about this. Thanks again.

[PhotoPilot]

I took out a loan and went into it without any previous debt. For the first two years, I can't imagine how I would have paid my bills if it hadn't been for my wife's income.

After the second year, I was lucky and moved out of flight instructing into a job that paid significantly more than the regionals. Money was still tight.

Now I'm lucky enough to have what amounts to a dream job - I fly shiny new GA pistons on the weekend and split my weekdays between an office and either a Cirrus SR22 or a Beech Premier. The money is great and I can support my family without needing my wife to work . . . but I still throw more than $550 bucks a month back at that stupid loan. In fact, the principle still hasn't started to go down because they front load the interest!

I was lucky. If I had it to do over again knowing what I know now, I never would have taken out a loan to pay for my training. I'd train while I worked, building my time and getting ratings without debt even if it did take a few extra years. Of course, that's what people here told me in the beginning, but I had to go and do it anyway!

Debt and an aviation career can be a tough combination. There's no hurry - don't let an academy convince you that you have to start and finish yesterday.

[lowery21]

All good points here guys and gals. I took out a loan and dove in head first. However, I had a supporting wife back home making sure the mortgage got paid. I had a part-time job while training that helped with expenses. We went in with only our cars, house, and her significant student loan as debt. Basically, I couldn't have done it without her for the small amount we took out.

The best advice I could give would be to either yourself, or with you wife....

Write down your specific goals.
Write down all of your debts.
Consider your income during training.
Give yourself a buffer.

Basically, know what you are undertaking. It will help when things come up, to have already thought about it....so you can concentrate on your training.