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Economic crunch and Training.


OhhAndy
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I am very concerned with the economy taking the downturn and how it directly relates to financing and schools. Lets face it if the economy is deteriorating and sallie mae is directly in the limelight, how is this going to affect the training loans, amount of people qualifing for them and the amount of newbies coming through in the next couple of years? Its going to be very hard to get your magic 1000 if only 1/4 of the amount of students are coming through the doors due to the economic crunch. I just talked to one school and theyve already seen the effects and suspected if things dont improve quickly they could be looking at laying off some cfi's and possibly selling a bird. I am thinking of cutting my losses of $2000.00 I have into training and sticking with my current job. Any thoughts?

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Don't quit your day job and pay for your training out of pocket, itmay take longer but look on the bright side NO LOAN TO REPAY :D

Yeah, If I did that I would be an old man before saving up the cash. I dont have $1000.00 a month to stick aside for training, at which would take 6 years of saving to get into school, my age would then be 45, too late friend. Even if a person could devote 100% of their income to training, most people would be looking at about 15 hours of work to pay for 1hr of school, not very reasonable is it? I am not just looking at my expense, I can control that and afford it, I got the loan allready...I worried about the people who will essencially be paying me back, through their lessons and I dont see a bunch of people having 65g cash burning a hole in their pocket.

Edited by OhhAndy
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I think this will probably be good for those who already have commercial certs. and 500+ hours. With significantly fewer students who can afford the training fewer CFIs will be able to reach the magic 1000 hours. This in turn will lead to fewer pilots available to fill the lower end pilot positions. With it harder to find people to fill these spots, companies will have no choice but to negotiate with insurance companies to lower the hours requirements or take their business elsewhere (or just not fly). Insurance companies will eventually have to change their minimum hours or risk loosing business. Just one company has to lower thier hour requirements or charge a higher premium to start the ball. And regardless of what anyone says "EVERYTHING" is negotiable even insurance premiums.

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Yeah, If I did that I would be an old man before saving up the cash. I dont have $1000.00 a month to stick aside for training, at which would take 6 years of saving to get into school, my age would then be 45, too late friend. Even if a person could devote 100% of their income to training, most people would be looking at about 15 hours of work to pay for 1hr of school, not very reasonable is it? I am not just looking at my expense, I can control that and afford it, I got the loan allready...I worried about the people who will essencially be paying me back, through their lessons and I dont see a bunch of people having 65g cash burning a hole in their pocket.

 

Wait a bit. I bet you find that 65K coming down a bit as the economy cools. You might want to look at credit cards to fund your training in stages. Get your private and then pay it off, then go for your commercial and then pay it off. If you compare what someone like Sally Mae charges for their loans as opposed to a good rate on a credit card you might find the credit cards cheaper then the training loan. I seem to recall Sally Mae was charging well above 15% percent, I had credit cards with 6% to 9% apr which were much better deals. Not sure if this works for you but worth a look at.

 

though I feel your pain about the age situation. I am 37 but this would be a second career for me (after having already been a pilot earlier in my life). I am well established in my current career, I just don't want to do it anymore.

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It's quite possible to work and fly at the same time.

 

Working and flying at the same time I got my PPL in a year and a half. You have to understand however that I took all enjoyment I had (besides flying, obviously) and got rid of it. No movies, no going out, no buying stuff just for the fun of it etc. I go to work, come home, eat dinner, study and go to bed. I work some weekends, and I volunteer to do overtime every chance I get (company doesn't like me doing overtime but it's needed here and there). I make 11.50 an hour, and I live in Southern California.

 

It sucks to not be able to go out and do things, but it's worth it to me to get my flying done.

 

Everyone has a different situation, and I understand that not everyone can do what I do (Family,kids, debt, etc) but if you really looked hard, you may be able to afford it.

 

It IS possible to do, it's just not very easy to do, and yes it will take a lot longer than the most.

 

Goodluck to everyone out there and I hope you can all find a way in this increasingly difficult time.

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It's quite possible to work and fly at the same time.

 

Working and flying at the same time I got my PPL in a year and a half. You have to understand however that I took all enjoyment I had (besides flying, obviously) and got rid of it. No movies, no going out, no buying stuff just for the fun of it etc. I go to work, come home, eat dinner, study and go to bed. I work some weekends, and I volunteer to do overtime every chance I get (company doesn't like me doing overtime but it's needed here and there). I make 11.50 an hour, and I live in Southern California.

 

It sucks to not be able to go out and do things, but it's worth it to me to get my flying done.

 

Everyone has a different situation, and I understand that not everyone can do what I do (Family,kids, debt, etc) but if you really looked hard, you may be able to afford it.

 

It IS possible to do, it's just not very easy to do, and yes it will take a lot longer than the most.

 

Goodluck to everyone out there and I hope you can all find a way in this increasingly difficult time.

By your reply I can only assume your a young single person with no children? Im married, have 2 kids in school, have a mortgage, have to provide health insurance for my family, Make 75g/yr and have been at my job for 15 years. It would be different if I were 20yrs old, single, and no resposibilites in life other than train. By the way, @ $11.50 per hour with 100% of your income going to training, it would take you 8125 hours worth of work to save up enough money for school.

Edited by OhhAndy
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By your reply I can only assume your a young single person with no children? Im married, have 2 kids in school, have a mortgage, have to provide health insurance for my family, Make 75g/yr and have been at my job for 15 years. It would be different if I were 20yrs old, single, and no resposibilites in life other than train. By the way, @ $11.50 per hour with 100% of your income going to training, it would take you 8125 hours worth of work to save up enough money for school.

 

Hey OhhAndy, I wrote that everyone has their own and different situations (like a family, kids, and a house) because I understand that not everyone can live like I can. I am 24, engaged and I work a lot of hours a week, as well as I get paid time and a half for overtime. I currently support myself and my fiance (He just graduated, so that will change soon hopefully). I was not pointing to you and saying "You can do it, stop slacking off!" Because I am NOT saying that. I am pointing out that it is possible for some of us to pay for training out of pocket depending on the situation, of course. I did not know your situation until after I made my post.

 

And yes, I know how much it costs and how long it will take for me to recieve all my training. I work at a job I don't especially like, but I do it anyways because it pays me enough. I don't plan on paying out of pocket for 100% of my training, but if I had to, I will. I am closing in on 100 hours, working on my commercial and IFR training currently.

 

 

Either way, good luck and I hope you find a way to get your training up and running (pun intended).

Edited by Chopperjess
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It's quite possible to work and fly at the same time.

 

Working and flying at the same time I got my PPL in a year and a half. You have to understand however that I took all enjoyment I had (besides flying, obviously) and got rid of it. No movies, no going out, no buying stuff just for the fun of it etc. I go to work, come home, eat dinner, study and go to bed. I work some weekends, and I volunteer to do overtime every chance I get (company doesn't like me doing overtime but it's needed here and there). I make 11.50 an hour, and I live in Southern California.

 

It sucks to not be able to go out and do things, but it's worth it to me to get my flying done.

 

Everyone has a different situation, and I understand that not everyone can do what I do (Family,kids, debt, etc) but if you really looked hard, you may be able to afford it.

 

It IS possible to do, it's just not very easy to do, and yes it will take a lot longer than the most.

 

Goodluck to everyone out there and I hope you can all find a way in this increasingly difficult time.

 

You should be commended for your maturity and financial self control. I couldn't have done that. Clearly you set your mind to a goal and did what ever it took to obtain it. I wish more people had that level of self control. Any company would be luck to hire you.

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You should be commended for your maturity and financial self control. I couldn't have done that. Clearly you set your mind to a goal and did what ever it took to obtain it. I wish more people had that level of self control. Any company would be luck to hire you.

 

Thank you, I really appreciate that!

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ohhAndy,

 

At the school where I work we are pretty busy still. But we get a lot people that come in just for the private. Not a lot of students working for CFI. It is harder for students to get the loans for $50-$70K. I think the economy will come back around.

 

I saw that you said you make 75K per year now. Thats going to be a really hard transition if you plan on being a full time CFI. Paying the bills can be hard on CFI pay. If you can manage to struggle through financially while your a CFI then go for it.

 

Brandon

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ohhAndy,

 

At the school where I work we are pretty busy still. But we get a lot people that come in just for the private. Not a lot of students working for CFI. It is harder for students to get the loans for $50-$70K. I think the economy will come back around.

 

I saw that you said you make 75K per year now. Thats going to be a really hard transition if you plan on being a full time CFI. Paying the bills can be hard on CFI pay. If you can manage to struggle through financially while your a CFI then go for it.

 

Brandon

Correct me if I'm wrong here but about 80% of full time students finance their education, From the numbers Im hearing from a strong financial business planner at least 50% of the students taking out loans will not be approved for sallie mae type loans. If this is the case the only option is to pay cash, put it on a credit card "really stupid", or have a perfect credit score and a cosigner with a perfect score a huge monthly earning capacity with a long background of such pay and maybe just maybe you'll get the loan at 15% with variable interest.This is not something I'm willing to risk 65g's on at this point. I guess I should have bought a home several hundred grand out of my price range, did a 2nd mortgage for school and then default on the loan, lose the house, keep the money from the 2nd and walla the citizens of the us would have paid for my school with a economic bailout...damn hind sight's 20/20

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No one can tell you what to do. You have to do what you think is best. You are pretty stable $$ wise it sounds and are able to provide for your family. Being a CFI and even several years there after it won't be that way. Remember it will be I would estimate 4-5 years before you would see a salary of $75,000/yr.

 

I don't know how I managed to pull it off.

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No one can tell you what to do. You have to do what you think is best. You are pretty stable $$ wise it sounds and are able to provide for your family. Being a CFI and even several years there after it won't be that way. Remember it will be I would estimate 4-5 years before you would see a salary of $75,000/yr.

 

I don't know how I managed to pull it off.

Yeah it would be tough indeed, 4-5 is a long time but Im afraid of the 4-5 stretching out to 7-9 years if my financial advisor is accurate. I think this economy is heading into a reccison and dont see it coming out for several years. I guess only time will tell. If I were deeper into training I would finish it "perhaps cp ticket" but with only 12 hrs deep and the situation at hand with the economy I'm bailing out...at least for now. Thanks guys.

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