List of school that lost Sallie Mae backing?

[Brentd2183]

Just got a letter here that Sallie Mae has decided to stop lending to certain flight schools. Does anyone know who has been affected? I heard the number is almost in the thousands. How many of those are helicopter flight schools I'm not sure, trying to get a feel for things by asking here, thanks.

 

Edit: The number "thousands" is to the amount of schools totally, could be hair cutting schools or anything of the like including flight schools. If they shut down thousands of flight school im sure we would have heard more about it, sorry.

[adam32]

I thought they stopped ALL lending...???

Edited April 10, 2009 by adam32

[fry]

Expect private loan originations to decline in 2009 with more rigorous credit underwriting standards. From SLM's annual report released 3/2:

 

The current credit environment has created significant challenges funding Private Education Loans and we have become more restrictive in our underwriting criteria. In addition, as discussed above, FFELP lending limits have increased significantly over the last three years. As a result of these factors, we expect originations of Private Education Loans to be lower in 2009 than in 2008.

 

The average FICO score for loans disbursed in the fourth quarter of 2008 was up 26 points to 738 and the percentage of co-signed loans increased to 74 percent from 57 percent in the prior year.

 

We plan to deploy up to one hundred credit analysts in our new Delaware credit center who will review applications for private credit.

 

And last week:

 

Responding to what it calls “difficult market conditions,” Sallie Mae announced via letter to select flight schools recently that it is significantly reducing the amount of flight training loans it generates.

 

Although the reduction is thought to be significant and widespread, the company wouldn’t comment on how many schools will be cut from the loan program.

 

“Due to difficult market conditions, we have found it necessary to focus our resources only on those schools that generate sufficient volume of approved loans to justify the expense of maintaining this manually intensive program,” said a spokeswoman.

 

The effective date of the termination is May 8. Applications submitted up to that point are being processed, according to the letter. Students are encouraged to speak with their flight school manager for additional details on whether or not financing will be available through Sallie Mae.

[slick1537]

I know I just got approved so I can finally finish my training!!!

[jras312]

how much did you get approved for slick? did you have a cosigner/s and do u know what your credit score you got approved with was? where are you training? im just wondering if it's even worth the hastle of going through alll the bs just to apply with them. thanks.

-ras

[fry]

how much did you get approved for slick? did you have a cosigner/s and do u know what your credit score you got approved with was? where are you training? im just wondering if it's even worth the hastle of going through alll the bs just to apply with them. thanks.

-ras

 

Incredible. Provide some people with factual information and they still want some anonymous forum board poster...likely a flight school salesperson...to tell them different.

 

"The average FICO score for loans disbursed in the fourth quarter of 2008 was up 26 points to 738 and the percentage of co-signed loans increased to 74 percent from 57 percent in the prior year."

 

That was last year (things have tightened since) and that was for all Sallie Mae private loans...most of which were to college students who have a better repayment rate than do flight school students. That means most flight school students will certainly need a co-signor with at least that high a credit score. Add to that Sallie Mae's May 8th "substantial reduction" in lending to flight schools and the likelihood of getting financing for flight training becomes virtually nil.

 

The flight schools aren't going to tell you this of course. How many are still advertising that they can provide financing on their websites?

 

Get a clue. Financing for flight training is no longer an option...it probably should never have been. With Sallie Mae's cutback most of flight schools now operating will likely be out of business by the end of this year.

[1HeliCFI]

Fry, I doubt that most flight schools will be out of business due to Sallie getting out of the market. My school has 20+ students and none of them are using Sallie. Sure it will limit new students options but I still have private pay students showing up to start training weekly.

[jras312]

so what if they are a flight school sales person, how would that harm me? i was just wondering what his/her situation is, if it's not legit then thats their problem. i guess it is your job to bring the negativity to the post, huh fry.

[Pogue]

Incredible. Provide some people with factual information and they still want some anonymous forum board poster...likely a flight school salesperson...to tell them different.

Does anyone else find this quote somewhat ironic considering the anonymous source?

[Darren Hughes]

With Sallie Mae's cutback most of flight schools now operating will likely be out of business by the end of this year.

 

Jesus Fry, that's a bit extreme don't you think? I think only 1 of our current students are using Sallie Mae right now. Yes, there are a few schools that have a lot of career track students that may or may not be using Sallie Mae. But to say that most flight schools will be out of business by the end of the year makes you sound like some ranting and raving crazy guy on the sidewalk.

 

I've noticed a trend recently in a few schools that would have been recommending potential students go to Sallie Mae for financing in the past. They have been linking up with local and State colleges to offer degree programs while also going towards CFI. I'm guessing this would help their students secure proper student loans for their education through an accredited school and therefor possibly leave easier access to financing. Would the interest rates on such loans be less than the craziness that Sallie Mae charges on their personal loans?

[Helopilt]

Well I know for a fact slick is no salesperson and I also know of at least one other student who has obtained a loan through Sallie at my school within the past month. I'm not naming names as I'll remain anonymous and wouldn't want you to think I'm a salesperson too...

[heli.pilot]

I've noticed a trend recently in a few schools that would have been recommending potential students go to Sallie Mae for financing in the past. They have been linking up with local and State colleges to offer degree programs while also going towards CFI. I'm guessing this would help their students secure proper student loans for their education through an accredited school and therefor possibly leave easier access to financing. Would the interest rates on such loans be less than the craziness that Sallie Mae charges on their personal loans?

I've noticed the same trend. It does seem to make financing easier. I'm not sure if the rates are much better.

[slick1537]

I don't know my credit score, I did have a co-signer. The approved me for $25k, they also approved me previously for $20k with the same co-signer. The funny thing is, if I was a flight school sales person, don't you think I would be adverting my employer?

[fry]

This guy is an interesting read...he writes about the fixed wing industry but what he says about flight schools applies to the rotary world as well:

 

http://fl250.blogspot.com/2005/10/selling-dream.html

 

Here's a recent piece related to the RW training industry:

As the economy continues to founder, the financial ripples are reaching all aspects of the aviation industry, including flight schools. Helicopter flight schools, in particular, are beginning to feel the pinch as many have noted a drop in enrollment levels amid the double burden of a tight credit market combined with suspicion about students’ abilities to pay off loans in the wake of the Silver State Helicopters collapse.

 

http://www.ainonline.com/news/single-news-...ining-industry/

[RkyMtnHI]

Hey all,

 

i acknowledge that it's tight, and getting tighter. I do know three students that have gotten approved over the past couple of months (thru Sallie)... only one has collected the funds at this time tho. I believe they are waiting on Utah Valley University paperwork to complete the other two transactions..

 

One is a new loan for ~$20K, the other two are additions to the first loans, one is for $25K, don't know the other. Don't know about cosigners, but i expect they all have one due to their ages.

 

i will try to keep you updated.

 

aloha,

 

dp

[Miles]

Any updates? I'm considering UVU for their spring semester and using their "Parent Plus" program to apply for a larger loan, looks like it's a max of 14.5k per semester now, so hopefully I can get the rest through a alternative.

[deanathpc]

Well for those of you who can use Sallie Mae be thankful. I'm trying to do a fixed wing Degree program and the only school that does it in this state Sallie Mae doesn't recognize. And my credit score isn't in the 700's yet so either way I'm screwed. Need a career change so bad I can taste it but yet can do nothing about it. So I'm jealous of those who are getting loans right now. At least someone is living the dream..

[Pohi]

From Sallie Mae website http://www.salliemae.com/slmfschllist/school.aspx?state=CA

 

Note: If you do not locate your school in the above drop down selection, unfortunately, we are unable to assist you with your financing needs. We are no longer accepting "Direct to Consumer" loan applications for the Career Training, K-12 or Continuing Education Programs. For alternative financing options, please contact your school directly. Thank you.

 

They stopped doing the direct to consumer loans. That is a loan where the money goes directly into your personal bank account, and then you pay the school.

 

There are some flight schools that are approved through Sallie Mae where the loan money goes to the school and not the student.

 

This is were the huge argument where 20 people will talk about not being able to get a loan, and one person will talk about how they just got one approved last week.

 

If you want to see if your school can still get loans, then just go to Sallie Mae, pick your state, and look through the list. Of course, remember.... all the money is going to the school, I am sure there are two or three people that know how well that can work out.

[RkyMtnHI]

From Sallie Mae website http://www.salliemae.com/slmfschllist/school.aspx?state=CA

 

Note: If you do not locate your school in the above drop down selection, unfortunately, we are unable to assist you with your financing needs. We are no longer accepting "Direct to Consumer" loan applications for the Career Training, K-12 or Continuing Education Programs. For alternative financing options, please contact your school directly. Thank you.

 

They stopped doing the direct to consumer loans. That is a loan where the money goes directly into your personal bank account, and then you pay the school.

 

There are some flight schools that are approved through Sallie Mae where the loan money goes to the school and not the student.

 

This is were the huge argument where 20 people will talk about not being able to get a loan, and one person will talk about how they just got one approved last week.

 

If you want to see if your school can still get loans, then just go to Sallie Mae, pick your state, and look through the list. Of course, remember.... all the money is going to the school, I am sure there are two or three people that know how well that can work out.

 

 

This is a good way to check out a school as well. There was one local school that called behind the students backs and asked for more $$ from the lenders AND GOT IT!! One student didn't find out for months and his loan went up by $9000.00. Both lending sources will no longer do business with that particular school due to the above incidents. One of the sources is Pilot Pro and the other i cannot remember; Pilot finance or something like that. If the school you are looking at cannot get financing from one or more sources then you should dig deeper.

 

On that issue, NEVER give a flight school a credit card number without putting a limit on what they can charge. I know that sounds crazy, but the same school charged students cards without permission, even after they were told NOT to charge money to the cards. Some students had not trained at the school for months, or were not even in this country any more. Their explanation was that the person doing the billing "just didn't know". Some of the people never got their money back, some it took over five months. Now before you say something like "that just cannot be", or "you must be mistaken". Remember Silver State, if you don't know about Silver State then do your research before you do anything else.

 

 

dp

[Miles]

On that issue, NEVER give a flight school a credit card

 

dp

 

Well said.