Flight school loan | TheaterFire

[-]

BDBfireEMS@reddit

Just find a school, even if you have to move, that works with the GI bill, I know they are out there. Also, look it up in this subreddit, plenty of people have done it.

[-]

LechugaLord202@reddit (OP)

I have decided to just move round a college with a good program that’s only 2 years old

[-]

Fellow vet here, I'm using my GI Bill right now to fund my schooling and flight training at the University of Dubuque in Dubuque, Iowa. It's been a life saver financial wise. Let me know if you want to talk more about it!

[-]

LechugaLord202@reddit (OP)

Found a college near me with a good program

[-]

ComprehensiveEar7218@reddit

If you can't afford to pay as you go out of pocket for PPL, then you need to re-evaluate your financial situation. Taking out a loan for PPL is idiotic.

[-]

Ok_Independent_7499@reddit

Could you please elaborate on why? I’m paying out of pocket but I’m just curious.

[-]

RaiseTheDed@reddit

Check out my comment on this post, it has an example for a loan for PPL and Instrument. By the loan term ends you are paying like double the cost of the initial loan or something

[-]

ComprehensiveEar7218@reddit

70% of students who begin their PPL never finish.

[-]

Ok_Independent_7499@reddit

Makes sense. Thanks for the clarification.

[-]

Acceptable-Wrap4453@reddit

When most ppl are asking about loans they’re talking about not working and flying full time. In which case they’re trying to get approved for a 120k unsecured loan where the lender is aware the borrower will not be working for a year or so and when they do they’ll only be earning 30-40k as a CFI for two years.

Lenders charge rates based on risk and this may be the riskiest type of lending there is. So the rates they’re issuing today are 17ish%+ and that’s with a co-signer which is just an awful awful thing to ask someone to do. Never ever ask someone to co-sign and never consign for someone. Over 20 years that payment is 1500/mo.

Ultimately these people drown in debt. The amount required to pay it off is equivalent to a mortgage. And with the hiring slowdown they’re looking at CFIing a lot longer than expected and barely scraping by as it is, let alone trying to make a 1500 payment.

[-]

Ok_Independent_7499@reddit

Thanks for the clarification. Appreciate the insight.

[-]

RaiseTheDed@reddit

I'd probably wait for the college.

This doesn't reallyyy apply, but kinda does, so I'll post it anyway.

I commented this and it's evolved into this that I paste into every post I see mentioning loans:

Everyone here says the same thing: avoid debt at all costs. Now, let's see why. Say that school wants a 100k for the program. What are current interest rates right now for an unsecured loan? Around 13-17%. I can't remember the term lengths of these loans, but you'll be paying around 2k a month to repay them, and you'll probably accrue 150k of interest alone. And since these loans aren't federally subsidized, you're going to start paying them immediately (smaller at first, as they are usually send the money in chunks).

Now, say you get the loan, get your CFI, and get hired to instruct (keep in mind, some people can't get hired as one, even if your school "guarantees" hiring you). You have a $2,000 a month loan payment to make, along with paying to live. A CFI makes 40-50k a year if you're lucky and work your ass off. 50k is just above 4k a month, before taxes. You'll probably be left with around 3k after taxes, which leaves you with $1,000 to live off of. Now, that's if you're lucky and live in a place with good weather. I don't think I made more than 1k some months in the winter where I live. Unless you're living with your parents, 1k a month will probably not be enough to live off of. You'll have to compare your current finances to decide.

Now let's look at some other variables. What happens if you have a medical issue and can't fly? Still gotta pay the loans. Can't find a job? Still gotta pay the loans. Have a job but airplanes went into maintenance/weather prevents you from working? Still gotta pay the loans.

And you're going to be paying 250k at minimum by the term ends.

You're essentially buying a mortgage (with a really shitty APR). Just because you can get a loan, doesn't mean you should. You must plan for all variables that you can think of, so that you can 1: survive, and 2: pay the loan.

Also see this post from the FAQ

This post gives an example on a smaller loan for just private and instrument, you'd still be paying 100k at the end of the term.

This post is an example of a 70k loan.

This is an example of a 122k loan.

I just wanted to give you some perspective, and not trying to be a debbie downer. It works for some, but it can be absolutely devastating if anything happens. And what if we end up in a recession? Jobs are going to go away. You'll be stuck with a loan payment.

Also, I've seen posts here of people who can't get a loan, even with a cosigner.

[-]

LechugaLord202@reddit (OP)

Thank you for this information

[-]

RaiseTheDed@reddit

You're welcome! We are here to help

[-]

betterme2610@reddit

No loans for ppl. Just silly. You might hate it by the end. Paying for your ppl out of pocket allows you to (not) finance a large chunk, ensures you’re actually dedicated and capable to fly. Imagine taking that giant loan just to either hate it, or wash out. Most don’t finish their ppl. It’s not a stab at your character just reality. At a minimum, get through phase one first imo

[-]

General_Escape@reddit

As someone who has taken out a loan, is working on the CPL rating right now and works the front desk/dispatch for a flight school. Never take out a loan before getting the PPL. Finance the ppl privately if possible, and get that class 1 medical. Reevaluate after that PPL is in hand if you need a loan or several low interest credit cards to earn a crappy ton of points

[-]

rFlyingTower@reddit

This is a copy of the original post body for posterity:

Greetings, I really want to peruse flying as a career. I applied to college to be a pilot but was told the program was too full. I have the GI bill; a nearby flight school said it won’t cover my people, but definitely my CPL. Should I just get a loan out for my people, then pay it off, or just wait until the college program is available?

I am a bot, and this action was performed automatically. If you have any questions, please contact the mods of this subreddit.