paying back the loan

flyallday

Well-Known Member
Ive been talking to panam about loans, and they say they have a loophole. As most schools you have to start paying back your loan 6 months after completing the program. Panam said they define completing the program after you get hired by an airline. So if you dont get hired by an airline after completing the program you dont have to pay a dime until you get hired?
Is this true, anybody out there from panam care to comment?
 

rausda27

Well-Known Member
Sounds a little fishy to me. Remember, that while you are in deferrment, that interest is just racking up, you might as well start paying ASAP!
 

EatSleepFly

Well-Known Member
Exactly. You're going to be in a world of hurt if you wait until you get hired by an airline to start paying loans back. I'm sure they can keep it deferred that long, all it takes is a form and a signature, but you'd be hurting yourself big time in the long run.
 

pure_IMC

New Member
Id say thats a big false. I have talked to instructors there and they have informed me what there payment is per month and they are certainly not working for any airline. Who told you this? PM if you would like.
 

Wolverine

New Member
That's not false. I'm an instructor and my payments are deferred until 6 months after leaving PanAm, which I'm hoping will be for an airline job. Everyone's situation is different, but in general a person instructs for a year or two, then moves on to an airline, at which time the 6-month grace period starts. I'm sure there's some limit to prevent career CFIs from deferring payments for life. It also depends on who the student borrowed the money from.
 

flyallday

Well-Known Member
I talked to panam and they said that you are defering your loan so there will be a interest rate while your waiting for your airline job
 

TheFlyingTurkey

Fetus Worshiper
Panamguy has it right. As long as you are at Pan Am, you do not have to pay back your loan. Loan payments begin 6 months after you leave Pan Am, for whatever reason. Be it for an airline job, or back to where ever it is you came from. the interest on your loan is accumulating from the day the money showed up on your account at Pan Am.

I don't know how a CFI can survive paying back a loan of $500-$600 a month, and still have enough money to pay for rent, phone, electricity, gas and insurance for the car, and oh yeah, you have to eat too. So the defered payment option is a good thing, at least for the short term.

If you have the income to pay your loan while you are in training, then by all means, pay it off, you'll save thousands in interest. But who has that kind of income while in full time training? Once I am done at Pan Am, I am going to try and refinance my loan, at a lower rate, and/or for a longer term, to reduce that monthly burden. That will help in the initial "lean" years in the airlines where FO pay isn't much better than a CFI's.

The Turk.
 

FLDiver

New Member
I gave Pan Am the boot well over a year ago and still haven't had to pay back anything. Maybe they forgot about me
...YEAH RIGHT !!!! Oh, I did the Key Bank loan and I am sure there will be a payment owed anytime now.
Oh, when I was checking out other flight schools, I was told at TAB Express that payment wasn't expected for 24 or 26 months after disbursment to the school. I guess it may vary from school to school depending.
 

FLDiver

New Member
I meant to ask in my last post, is there anyone out there that IS currently paying payments on their loan? If so, I would really like to know what your payments are (I realize they will vary based upon how much you borrowed). I could only get rough guestimates from everyone I talked to at Pan Am and Key Bank.
 

TDK90

New Member
This is a good thread..

Guys with loans..I have a couple of questions

1. How much do you owe?

2. How long will it take to pay back?

3. How much will the total amount be?

4. Is it going to be worth it?
 

yankee_one

New Member
Working for anther school myself, I would warn you to call the bank and ask for specifics regarding the deferment of the payments. when a student calls me wanting details on the loans I almost always refer them to our Financial aid dept or the lender becuase I would hate to give someone the wrong information in that regard.
 

dakovich

Well-Known Member
doesn't sound like anybody is real quick to give out their financial info to ya. probably cause everyone starts to cry when they really think about it...j/k. either way, just as stated above, if you contact Key they'll tell you the answers to your questions. just give them the basic figure you intend to borrow, such as if you took out the whole $80k or $100k. you'll gag a little when you get the answer, i mean you could probably buy a plane and pay for instruction, sell the plane when you're done and save a crap load of $$$.
 

FLDiver

New Member
Ya know Dak...that sounds like a VERY good idea...I have heard of people actually buying a plane and then selling it or moving on to higher performance A/C. Any validity to this? I know you had one hell of an idea that I wish I had thought of before attending Pan Am and that was buying a condo in Vero or wherever then selling it making a profit..thats good business sense to me.
 

flyallday

Well-Known Member
This is an example of key banks loan repayments.


borrowed 10k Monthly payment 116.86 #of payments 120 APR 5.44%

borrowed 20K Monthly payment 173.56 #of payments 180 APR 5.28%

borrowed 30K Monthly payment 347.13 #of payments 180 APR 5.28%

borrowed 40K Monthly payment 432.99 #of payments 180 APR 5.19%

borrowed 60K Monthly payment 469.07 #of payments 240 APR 5.19%

borrowed 80K Monthly payment 577.32 #of payments 240 APR 5.19%
 

dakovich

Well-Known Member
it would be cool to see a well researched side by side comparison of academy cost vs. fbo cost vs. investing in an aircraft and paying for instruction type deal. not just monetary cost but also other variables involved in each scenerio.

as for the condo idea, by all means if you have the resources to do it then do it! especially with the $80k+ you can get from key, put a down payment on a place with 2 or so bedrooms and rent one to a buddy at school with ya. then when all is done sell the joint and make a profit, or at the very least lose less than if you had rented a place. i made enough back on my condo to pay for my PPL and some of my IR.
 
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