Student Loan Help
03-06-2013, 06:53 PM
#62
Line Holder
Joined APC: Feb 2013
Position: T-38 IP
Posts: 70
As for paying your debts... JohnBurke is spot on, he wrote some of the best stuff I've ever seen posted on a forum. I would not be able to look in the mirror let alone face my wife if I didn't take care of my obligations. Don't be a taker, if you want that, go join the occupy Wall Street crowd.
You have no excuse, you need to own this. It sounds like you got into aviation shortly after 911 happened. Did it ever cross your mind that the image of airliners crashing into buildings was going to be bad for the industry. It was pretty evident to me...enough so that I went to an Active Duty USAF recruiter on Sept 12th mostly wanting to serve my country, but also realizing that my future Airline career would likely not pan out for at least a decade. I was a CFI trying to get a reserve job and regional job at the time.
O.K. Now for some advice
First the debt...SJ did it right and should be admired for it.
A couple questions for you.
How old are you?
Do you have kids?
Does your wife work? If so, can she increase her income? If not, does she have any skills?
Do you have credit card debt as well?
Car loans?
I recommend reading Dave Ramsey's total money makeover. You need to stop thinking in terms of paying the minimum payment for 30 years and start thinking in terms of paying as much as you can to pay it off in six years (like SJ did).
You should not have bought a house with the type of debt you have. If you can sell your house and at least break even, you should do so and move into a one bedroom or studio apartment. That alone will probably free up enough cash a month to cover the min payment on the loans. If you are underwater on the house, consider renting a room out.
If your car is worth more than 10k, sell it and buy a 3k car that gets decent mileage, do your own basic maintanence and take proper care of it, forums and YouTube will teach you everything you need to know. If (heaven forbid) you have a nice new car with a car payment then sell it ASAP and price it to sell in two weeks or less so you don't have to make another payment on it. Oh, by the way repeat with your wife's car, this is a team effort. I'd probably get her a slightly nicer car maybe 4k or so to keep her happy.
Do you have a smart phone with Internet? Ditch the Internet and keep the most basic service. Ditch your land line.
Cancel cable or go to basic only. Cancel home security monitoring, keep the alarm siren and buy a pistol for home defense (shotgun if you want to listen to Biden). Monitoring is expensive and the fight will be over by the time the cops arrive.
No more vacations & cut back on going out to dinner, use a cash budget, get rid of all credit cards except your debit card, cancel your gym membership, use coupons at the grocery store and look at unit prices when you shop. Set financial goals. Right now work on getting any job at all then get a second job.
Your wife will need to work as well.
As for a career change, I don't think it's necessary. The job market is pretty bad right now so I don't know how much better off you'd be. Of course if you have some connections or a family business then that might be a good way to go.
Your hours are inverse of what they should be at your level. Out of curiosity I checked my logbook. When I hit 1500 hours (this was before my Air Force career) I had 1440 hours PIC. Based on your debt and severe lack of PIC, I strongly suspect pay to play is at work here. If so, that's probably only slightly better than being a scab in a lot of people's mind, so you might have to deal with that in interviews.
I think you should start over and climb the standard dues ladder. Get your CFI, it should cost you less than 4k. I recommend you find a flight school that has independent contractor CFI's. Use them for your CFI certificate and then that will be your in for a job. Why independent contractors? Because you will make much more money as an independent contractor. You can charge what you want and should keep every penny. You will likely have to pay monthly dues of $50 or so. Charge for handshake to handshake. Even though we all know that your SIC time is worthless, you might be able to use it to your advantage and charge more for your instruction. The common flight student might be impressed by it and be willing to pay more, even though the reality is that a brand new CFI who's been flying light GA only will most likely be a better instructor. Try to get mostly successfull professionals as students. They can afford the training and are happy to pay more for a perceived value in their instructor. Instruct for a few years, you should be charging over $50 an hour (handshake to handshake) by then and have 1000 hours PIC. Then go back to a regional, or 135, or corporate.
Have a second part time job. Delivering pizzas is a great option. Find a place that pays decent gas reimbursement and let's you keep all tips.
As a reminder try to pay this debt down in 6 years or less.
Good luck
You have no excuse, you need to own this. It sounds like you got into aviation shortly after 911 happened. Did it ever cross your mind that the image of airliners crashing into buildings was going to be bad for the industry. It was pretty evident to me...enough so that I went to an Active Duty USAF recruiter on Sept 12th mostly wanting to serve my country, but also realizing that my future Airline career would likely not pan out for at least a decade. I was a CFI trying to get a reserve job and regional job at the time.
O.K. Now for some advice
First the debt...SJ did it right and should be admired for it.
A couple questions for you.
How old are you?
Do you have kids?
Does your wife work? If so, can she increase her income? If not, does she have any skills?
Do you have credit card debt as well?
Car loans?
I recommend reading Dave Ramsey's total money makeover. You need to stop thinking in terms of paying the minimum payment for 30 years and start thinking in terms of paying as much as you can to pay it off in six years (like SJ did).
You should not have bought a house with the type of debt you have. If you can sell your house and at least break even, you should do so and move into a one bedroom or studio apartment. That alone will probably free up enough cash a month to cover the min payment on the loans. If you are underwater on the house, consider renting a room out.
If your car is worth more than 10k, sell it and buy a 3k car that gets decent mileage, do your own basic maintanence and take proper care of it, forums and YouTube will teach you everything you need to know. If (heaven forbid) you have a nice new car with a car payment then sell it ASAP and price it to sell in two weeks or less so you don't have to make another payment on it. Oh, by the way repeat with your wife's car, this is a team effort. I'd probably get her a slightly nicer car maybe 4k or so to keep her happy.
Do you have a smart phone with Internet? Ditch the Internet and keep the most basic service. Ditch your land line.
Cancel cable or go to basic only. Cancel home security monitoring, keep the alarm siren and buy a pistol for home defense (shotgun if you want to listen to Biden). Monitoring is expensive and the fight will be over by the time the cops arrive.
No more vacations & cut back on going out to dinner, use a cash budget, get rid of all credit cards except your debit card, cancel your gym membership, use coupons at the grocery store and look at unit prices when you shop. Set financial goals. Right now work on getting any job at all then get a second job.
Your wife will need to work as well.
As for a career change, I don't think it's necessary. The job market is pretty bad right now so I don't know how much better off you'd be. Of course if you have some connections or a family business then that might be a good way to go.
Your hours are inverse of what they should be at your level. Out of curiosity I checked my logbook. When I hit 1500 hours (this was before my Air Force career) I had 1440 hours PIC. Based on your debt and severe lack of PIC, I strongly suspect pay to play is at work here. If so, that's probably only slightly better than being a scab in a lot of people's mind, so you might have to deal with that in interviews.
I think you should start over and climb the standard dues ladder. Get your CFI, it should cost you less than 4k. I recommend you find a flight school that has independent contractor CFI's. Use them for your CFI certificate and then that will be your in for a job. Why independent contractors? Because you will make much more money as an independent contractor. You can charge what you want and should keep every penny. You will likely have to pay monthly dues of $50 or so. Charge for handshake to handshake. Even though we all know that your SIC time is worthless, you might be able to use it to your advantage and charge more for your instruction. The common flight student might be impressed by it and be willing to pay more, even though the reality is that a brand new CFI who's been flying light GA only will most likely be a better instructor. Try to get mostly successfull professionals as students. They can afford the training and are happy to pay more for a perceived value in their instructor. Instruct for a few years, you should be charging over $50 an hour (handshake to handshake) by then and have 1000 hours PIC. Then go back to a regional, or 135, or corporate.
Have a second part time job. Delivering pizzas is a great option. Find a place that pays decent gas reimbursement and let's you keep all tips.
As a reminder try to pay this debt down in 6 years or less.
Good luck
Last edited by RBI73; 03-06-2013 at 07:01 PM. Reason: Typos
03-07-2013, 02:58 AM
#63
Banned
Joined APC: Jan 2008
Position: Pilot
Posts: 2,625
What troubles me is that there are those out there that would and do lie to people to get them to take on this much debt. Although those that are in debt should pay and make every effort to do so, would everyone here be as forgiving of the person/process locking them in if it was your grandma being swindled out of her life savings? Would we be patting the person that swindled her on the back as much?
03-07-2013, 06:09 AM
#64
Gets Weekends Off
Joined APC: Nov 2011
Position: Volleyball Player
Posts: 4,024
I might be more inclined to help grandma out, but if she agreed to pay something back then she is going to pay them back. It doesn't make a difference who it is. It is not being swindled out of your life savings, it is making a stupid decision by borrowing that kind of money in the first place.
Whatever.
I actually do agree with the poster above you, those methods are exactly what need to be considered. It's ONLY if those are not sufficient then more drastic steps are needed. There is no question that they should have to pay back their money by every and any means possible.
03-07-2013, 07:18 AM
#65
Banned
Joined APC: Jan 2008
Position: Pilot
Posts: 2,625
Um, yeah...I fail to see any difference here, just that you choose to associate the world "swindled" with what happens to grandma, and the guy that doesn't get told all the information about the industry who is young and doesn't know better makes "a decision".
Whatever.
I actually do agree with the poster above you, those methods are exactly what need to be considered. It's ONLY if those are not sufficient then more drastic steps are needed. There is no question that they should have to pay back their money by every and any means possible.
Whatever.
I actually do agree with the poster above you, those methods are exactly what need to be considered. It's ONLY if those are not sufficient then more drastic steps are needed. There is no question that they should have to pay back their money by every and any means possible.
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