heli.pilot Posted December 27, 2008 Report Share Posted December 27, 2008 I was able to get the $25k from AOPA. You must be an AOPA member to apply and it's good idea to be a member anyways. The AOPA loan is a "Line of Credit" through Bank of America. What that means is that it acts similar to a credit card. You can pull out money whenever you want, and whatever you pay back you can pull out again. It does come with a higher rate similar to a credit card though. My home equity line of credit with Bank of America is running at 3.74% currently. I would imagine that the LOC that AOPA set you up with is unsecured, and consequently a higher rate, correct? Quote Link to comment Share on other sites More sharing options...
DieselBoy Posted December 27, 2008 Report Share Posted December 27, 2008 You are correct. My rate with the AOPA loc is 14%!!! It was my last option and I had to use it. No equity for me and Sallie Mae denied me for a 2nd loan. Quote Link to comment Share on other sites More sharing options...
heli.pilot Posted December 27, 2008 Report Share Posted December 27, 2008 You are correct. My rate with the AOPA loc is 14%!!! It was my last option and I had to use it. No equity for me and Sallie Mae denied me for a 2nd loan. Ouch... a LOC is a great (and flexible) option. It's handy being able to vary your payments from month to month and move money in and out of the LOC as needed. If you're completely in a pickle, so to speak, you can even withdraw funds from the LOC to make the payment - I know, I know, your probably all cringing as you read that, just as I was as I typed it! It's good to have options though. I've gotta go pay one credit card with another... just kidding, people... just kidding! Best of luck with your training! Quote Link to comment Share on other sites More sharing options...
vegasmonkey007 Posted December 29, 2008 Report Share Posted December 29, 2008 Try Navy Federal. If you are not a member but have a relative in the Armed Forces you can become one. My Bro in law is in the Navy, I joined and got a small personal loan ay a decent rate. I was turned down by most banks due to the credit crunch but Navy Fed said yes and the terms were a little more attractive than pilot finance. Quote Link to comment Share on other sites More sharing options...
coloheli Posted December 30, 2008 Report Share Posted December 30, 2008 I was able to get the $25k from AOPA. You must be an AOPA member to apply and it's good idea to be a member anyways. The AOPA loan is a "Line of Credit" through Bank of America. What that means is that it acts similar to a credit card. You can pull out money whenever you want, and whatever you pay back you can pull out again. It does come with a higher rate similar to a credit card though.Just wondering not to pry, when did the AOPA aproval come thru? I am in the same boat as the rest, addicted with no winning powerball ticket. Quote Link to comment Share on other sites More sharing options...
DieselBoy Posted December 30, 2008 Report Share Posted December 30, 2008 I was approved for it in October of 2007. I don't have the AOPA link with me but if you search here you can find it. I just called the number and was approved over the phone. Quote Link to comment Share on other sites More sharing options...
hooked4life Posted January 4, 2009 Report Share Posted January 4, 2009 I'm currently active duty military and am planning on getting out in september and trying to save every penny I can until then, but I think I'm still going to fall short of paying for all of my private license out of pocket and was planning on taking out a loan to pay for that and up to CFI( whatever the GI bill won't cover). I'm wondering if I should try and apply for a large loan now, while I'm still on active duty, since I really won't have any income when I get out. I mean will I even be able to get a loan with good credit and no income? Quote Link to comment Share on other sites More sharing options...
heli.pilot Posted January 4, 2009 Report Share Posted January 4, 2009 I'm currently active duty military and am planning on getting out in september and trying to save every penny I can until then, but I think I'm still going to fall short of paying for all of my private license out of pocket and was planning on taking out a loan to pay for that and up to CFI( whatever the GI bill won't cover). I'm wondering if I should try and apply for a large loan now, while I'm still on active duty, since I really won't have any income when I get out. I mean will I even be able to get a loan with good credit and no income? No income could be kind of deal breaker, I'd apply now while you still active duty. You could set up a line of credit now (and just not draw on it until you need to) and it shouldn't cost you anything. I have a home equity line of credit and it cost nothing to setup and nothing to maintain. Each month I just pay according to what the balance is for that month. I would definitely apply now though while you are active duty and have solid employment history to qualify you. Quote Link to comment Share on other sites More sharing options...
fry Posted January 4, 2009 Report Share Posted January 4, 2009 I mean will I even be able to get a loan with good credit and no income? You're kidding, right? But if you're not, be very careful. At least until you get beyond your financial naivete don't sign anything you don't fully understand and be skeptical of anything the flight school salespeople say that is not in writing. Quote Link to comment Share on other sites More sharing options...
500E Posted January 4, 2009 Report Share Posted January 4, 2009 DO NOT PUT DOWN BIG BUCKS.Read all threads about training, the horror stories are for real.Talk to someone who understands finance & has no AXE to grind.Do your best to pay from savings, stop drinking, eating, (going out with girls, there will be plenty when you are a helicopter pilot :lol:) Also if married remember AIDS can follow even the best Helicopter pilotSeriously do your best to finance the training without borrowing. Quote Link to comment Share on other sites More sharing options...
heli.pilot Posted January 4, 2009 Report Share Posted January 4, 2009 I think, or rather hope, that it is a well known fact that paying up front is a REALLY bad idea. Some schools may give you a price break for buying time on blocks and, provided you're not putting down huge chunks of change, that may not be a terrible idea. However, paying for all your training (or even large chucks of it) up front IS a terrible idea. That said, borrowing funds for training does not necessarily equate to paying up front. I borrowed funds for the latter part of my training, and NEVER paid for any flight time that I had not already flown. At any point during my training I could have shown up at my flight school to find a security guard and a locked door (as happened at SSH) and I would not have been out one dime. For some people, borrowing money may in fact be a better option than paying as you go. It is important for people to consider borrowing money for training (vs buying time as you can afford it) and paying up front (vs paying as you go) as two separate issues. Again, paying up front IS a bad idea. Borrowing, however, is not necessarily a bad idea. The only time I would strongly advise against borrowing (assuming the person has the ability to service the loan) is if the lender will only fund the loan directly to the school. If you cannot have the loan funded TO YOU, don't borrow the money. When borrowing money forces you into paying up front, borrowing is a bad idea. Quote Link to comment Share on other sites More sharing options...
hooked4life Posted January 8, 2009 Report Share Posted January 8, 2009 Thanks for the input Quote Link to comment Share on other sites More sharing options...
RkyMtnHI Posted January 8, 2009 Report Share Posted January 8, 2009 Pay attention!! if you are a new hopeful helo pilot and are reading this topic, and others like it, Pay Attention to what these people are saying. i watched this forum for a long time before i finally got into training, most of the info you get here is spot on, these folks have been there, and watched others go thru it. You can avoid mishaps (sometimes very expensive ones), by just being patient and learning from others. a perfect example is silver state, many of us were told to avoid them like the plague, it was difficult and has cost some their dreams. most certainly you will have to make some sacrifices to reach your goals, don't add any unnecessary ones to the pile. good luck, you can do it if you want it bad enough!! dp Quote Link to comment Share on other sites More sharing options...
hooked4life Posted January 8, 2009 Report Share Posted January 8, 2009 Pay attention!! SIR, YES, SIR! I'm listening. I'm definitely in the hopeful category and I try to keep in mind everything that everyone says here. I am truly and honestly grateful that so many people who've gone through all this before are still active in these forums. I hope that some day I'll be able to pass on my experiences in the same way. Quote Link to comment Share on other sites More sharing options...
ADRidge Posted January 9, 2009 Report Share Posted January 9, 2009 Man I spent a year hanging around these forums, asking advice and reading the advice of others before I even picked a school. Learn as much as you can about how this industry works. That is to say, the difference between minimums and real life, FAA and insurance companies. Learn about good strategies in picking a CFI that fits with you. Most importantly, no matter how badly you want this, no matter what you'd do to get that first rating, don't take out a loan. You will make many mistakes in your PPL training. You may pick the wrong school, you may pick the wrong platform to do your primary training, you may pick the wrong instructor. And that's before you start flying. The ability to pay cash, in small increments allows you to fix those mistakes without as much hassle. If you give a school 60 grand all at once, it will most likely be more difficult to get it back, or to give it back to the lender and move on if that's how it ends up for you. But hey, if you want it bad enough, you'll get it and you won't let anything get in your way. Best of luck. Quote Link to comment Share on other sites More sharing options...
rjl2001 Posted January 15, 2009 Report Share Posted January 15, 2009 Question for those of you with private student loans. Are there any alternative loans that use a fixed interest rate? I didn't notice that Sallie Mae, Wells Fargo, Chase, etc. all use variable interest rates on their alternative loans. Even when I thought they were based on fixed rates, I was having trouble convincing myself. But I definitely don't want to take out a variable interest rate loan for $40k, especially with the economy right now. Quote Link to comment Share on other sites More sharing options...
coptermedic Posted January 15, 2009 Report Share Posted January 15, 2009 hello everyone; This is my first post on this forum, however I've read it for a long time. I am an independent CFI who have gotten lots of calls regarding this topic & all the information give here is right on. One source I didn't see mentioned here as far as loan resources are Credit Unions. They are, I feel; easiest to work with not to mention as a member you benefit from accounts and loan as well in the form of dividends.Anyway, if anyone of you are in the Central Texas area and looking for the affordable pay as you go flight instruction, I'd be more than happy to assist.Stevehelicoptersofaustin.com Quote Link to comment Share on other sites More sharing options...
coloheli Posted January 15, 2009 Report Share Posted January 15, 2009 rjl2001 You may really want to take a VERY good look at where the economy is heading. I am paying back my private right now, and I couldn't imagine paying back more than that. If you however go for it, rates are very low right now and can really probably only go up from here. Think about that. In the flip side, fixed interest like I have, boy they have no problem bending you over on the interest, even wih a decent score like I have. Fixed is always higher, but you know how much your payments will always be. Quote Link to comment Share on other sites More sharing options...
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