CRMcaptain

Hello

I'm a Commercial Aviation student at UND and I'm about to start making loans.

I have a few questions:

1) Most of the private student loans I saw have "variable rates" (wells fargo, chase, us bank) ... is this true for most private student loans?

2) It is my understanding that I won't make one big loan that will cover the 4 years ... only what I need for a year. Is this correct?

3) Do you know one bank that is better than the others?

rickair7777

Unless you have independent financial means (in which case you probably wouldn't be asking these questions) I suggest you borrow only enough money for a 4-year education in a non-aviation major. Graduate, get a job in your field, and start flight training on the side...pay as you go.

Evaluate your desire to fly (and live in poverty), pay attention to the state of the airline industry, and make the career decision after you have more money, experience, and knowledge of aviation.

I suspect you won't listen to me, but you'll probably wish you had 10-15 years from now.

CRMcaptain

rick I wonder why you are bitter ... looking at your avatar you seem to have a golden parachute .


Thanks for the advice ... I appreciate it!

rickair7777

I'm not bitter at all, I enjoy aviation but about half the people I fly with hate it. My finances are not limited by aviation, I'm actually pretty well off (which gets me an upper-middle class lifestyle in cali) and aviation provides me with a lot of lifestyle flexibility. I got there by following my own advice, although I didn't plan it that way. After being NPQed from military flying I had a military commitment to fulfill, which led to a lucrative non-aviation civilian career.

But I know too many guys who can't afford to travel, and sit around on the computer constantly trying to pick up extra flying so they can buy another case of top-ramen at costco. If that's what you aspire to, great, but most folks didn't plan on ending up that way.

IMO, in order to have a successful career in aviation (enjoyable with better than blue collar wages) you need to get on with a good major airline at a young age. That opportunity is looking pretty slim in the future, some folks have estimated that 10-15% of regional pilots will be able to move on. I'm not sure it will be quite that low, but it will be very competitive. Oil prices and artificial carbon limits stand to wreak havoc with an already weak and unstable airline industry.

I can enjoy it while it lasts, it won't kill my financial future. But if you are young with no outside income source, better approach this business very carefully. That's really what I'm suggesting, approach it in a manner which does not enslave you to a large debt. Leave yourself a way out at every step (hopefully you won't need it).

If you have a trust fund or eventual inheritance, then knock yourself out.

nigelcobalt

Amen to that Rick. Been at SkyWest for 4 years myself. I enjoy it, but no as much as I did a couple years ago. About 10% of the captains I fly with are actively pursuing a way out. In fact I'm on a 4 day with a check airman and sim instructor that I think has it made, and he will be quiting pretty soon.

If you have $100k in student loans you have no options. IF I were to do it all over again, I'd do it exactly how Rick stated above. The problem is, there is not a person more blind than an aviation student.

poor pilot

Don't take a loan I hear guys all the time with 6-to 800 dollar loans I'm so glad I'm not one of them but I do know we don't make enough money to pay them back. Get a degree in something else get a real job fly on the side come back when aviation its on the upswing. The dream is dead ask someone who is living the nightmare.

A3Lately

Or invest with guys Nussbaumer Pearce Capital - Home
Wizards!! They helped me greatly in contrast to two useless managed funds I invested with.

Airbum

rick that is some great well reasoned advice obviously learned through life experience.