Salli Mae and credit scores

Jack Burton · September 20, 2006

I have read many post here regarding the total amount that Sallie Mae loans out for flight training. I have read across the blogs that their credit standards are very strict, then I hear people saying they will loan alot of money to just about anybody as long as your credit is "decent." Then there was the guy who had a FICO of 790 and could only get approved for $25,000. My wife recently got a loan through sallie mae for a culinary school, I think it is the same kind of loan, the career training loan. Her credit was at 625 and she got $36,000 easy even making only $15,000 a year here in CA. Based on experiences with students here who have got loans through sallie mae, I had a few questions. 1st, I have a FICO score of 663 right now, with will be close to 700 hopefully by spring, or somwhere in the realms of excellent credit. I have a little over 30,000 from the g.i. bill left over, so to do a PVT-CFI or maybe even CFII, I will probably need a good 30,000-40,000 extra. Would I possibly stand a chance on getting approved? And lastly can a student for a flight loan pay interest only or does the full monthly payments start immediately?

klas · September 20, 2006

I have read many post here regarding the total amount that Sallie Mae loans out for flight training. I have read across the blogs that their credit standards are very strict, then I hear people saying they will loan alot of money to just about anybody as long as your credit is "decent." Then there was the guy who had a FICO of 790 and could only get approved for $25,000. My wife recently got a loan through sallie mae for a culinary school, I think it is the same kind of loan, the career training loan. Her credit was at 625 and she got $36,000 easy even making only $15,000 a year here in CA. Based on experiences with students here who have got loans through sallie mae, I had a few questions. 1st, I have a FICO score of 663 right now, with will be close to 700 hopefully by spring, or somwhere in the realms of excellent credit. I have a little over 30,000 from the g.i. bill left over, so to do a PVT-CFI or maybe even CFII, I will probably need a good 30,000-40,000 extra. Would I possibly stand a chance on getting approved? And lastly can a student for a flight loan pay interest only or does the full monthly payments start immediately?

The only way you will get a correct answer is if you apply and find out. No one here can decide whether you can get approved or not.

Re your last question - I have SLM loans & paid full monthly amts after a certain time period, like 12 mos. or something, then it goes to full amt.

pasbonsimon · September 21, 2006

my credit score was well over 700, Sallie Mae only offered me $25K. I had to reapply for the second $25K. Sallie Mae I am paying interest only on the first loan, and full deferrment until 6 months after graduation on the second loan.

I could be wrong but I think the GI Bill will only kick in after PPL and after that it only pays 60%. The VA will also not pay under Part 61 so your school choices will be limited.

Unit74 · September 24, 2006

The problem with SM is that their loans are front loaded........meaning......

When I went to pay off my loan, I had to pay the full terms interest plus the prinipal. After a year of paying on it, my loan balance was still the same and I was pretty pissed off about that.

I will not take out a Sallie mae loan ever again for anything.

fry · September 24, 2006

The problem with SM is that their loans are front loaded........meaning......
When I went to pay off my loan, I had to pay the full terms interest plus the prinipal. After a year of paying on it, my loan balance was still the same and I was pretty pissed off about that.

I will not take out a Sallie mae loan ever again for anything.

How much did you think it would go down? At the current 8.25% rate on a 15 year loan the principal in the first year only goes down 3.5%. And that's making monthly payments all year. If you mean by "front loaded" that the monthly payment is applied first to the interest and then to the principal, all loans work that way. No point in being "pissed off" at SLM, you wanted to borrow the money and that's what it costs.

fry · September 24, 2006

I have read many post here regarding the total amount that Sallie Mae loans out for flight training. I have read across the blogs that their credit standards are very strict, then I hear people saying they will loan alot of money to just about anybody as long as your credit is "decent." Then there was the guy who had a FICO of 790 and could only get approved for $25,000. My wife recently got a loan through sallie mae for a culinary school, I think it is the same kind of loan, the career training loan. Her credit was at 625 and she got $36,000 easy even making only $15,000 a year here in CA. Based on experiences with students here who have got loans through sallie mae, I had a few questions. 1st, I have a FICO score of 663 right now, with will be close to 700 hopefully by spring, or somwhere in the realms of excellent credit. I have a little over 30,000 from the g.i. bill left over, so to do a PVT-CFI or maybe even CFII, I will probably need a good 30,000-40,000 extra. Would I possibly stand a chance on getting approved? And lastly can a student for a flight loan pay interest only or does the full monthly payments start immediately?

Here's a tip about FICO scores...they're not intended to benefit the borrower. They are a way for the lender to justify...to regulators, legislators and borrowers...charging higher rates. "Well we're sorry but your FICO score is only XXX so we can't give you our advertised "excellent credit" rate. But don't worry, you qualify for our "good credit" rate which is only two points higher."

Also, SLM may not give you an "excellent credit" rate with a FICO score of 700. They weight current employment and employment prospects after completion of training greater than they do FICO scores. And they know what CFIs generally earn.

Just so you're not surprised.