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Question on Sallie Mae loans


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I know there is no penalty to pay off the loan early, but if I do pay it off early, do I have to pay the full amount of interest for the initial time I signed up for? I heard you did from someone the other day... but it didn't sound right. Any input? Thanks in advance...

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I know there is no penalty to pay off the loan early, but if I do pay it off early, do I have to pay the full amount of interest for the initial time I signed up for? I heard you did from someone the other day... but it didn't sound right. Any input? Thanks in advance...

 

 

You pay on the interest that has built up so far, not the entire interest that could of built up.

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that's pretty cool. say you're a bachelor with fairly low living standards. take out a 50k loan plus what you've already saved to pay for 1 year training. zero through cfii. start working as a cfii for 1-2years to get hours. while paying what you can on the loan. then get a job in the gom or wherever after 3 years. start making 50k per year, live humble, pay off pretty damn quick.

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that's pretty cool. say you're a bachelor with fairly low living standards. take out a 50k loan plus what you've already saved to pay for 1 year training. zero through cfii. start working as a cfii for 1-2years to get hours. while paying what you can on the loan. then get a job in the gom or wherever after 3 years. start making 50k per year, live humble, pay off pretty damn quick.

 

Okay, so run some numbers on that scenario:

 

Year 1: Borrow $50k from Sallie Mae and defer the interest for one year of training (the training will cost more than the $50k but the difference comes from savings); live at home and don't work so you can finish training in one year. At the end of the year you are a newly minted CFI with 200 flight hours and $55,625 in debt.

 

Years 2 & 3: Make $28k annually as a CFI (that's probably optimistic); pay $2,142 in payroll taxes and $7,692 ($641/mo) in loan payments leaving $18,166 a year to live on. Probably won't be living at home because you'll have to relocate to get the CFI job...so nothing there to make additional loan payments with. At the end of Year 3 you've got your 1,000 hours and move to sunny La.

 

Year 4: Start at $56k and after payroll taxes ($4,284), federal income taxes ($8,445) and loan payments ($7,692) take home $35,579 for rent, food, transportation...and very little else. Loan balance is $48,422 at the end of the year.

 

Years 5 thru 11: Basically the same as Year 4 but with about 3% pay increases to about $75k in Year 11...and still have five more years of loan payments.

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Okay, so run some numbers on that scenario:

 

Year2 & 3: .........leaving $18,166 a year to live on. Probably won't be living at home because you'll have to relocate to get the CFI job...

Year 4: ........take home $35,579 for rent, food, transportation...and very little else.

 

You are always the man with the numbers here fry......just one quick question.

If you can live on your own year 2+3, staying on your own(power,water++) and eating home every night while being a CFI for $18,166/year, why does it cost you $35,579 for year 4 when you spend half the year in "sunny La"???

You still need transportation as a CFI, you still need food, water and heat.

Also if you are willing, I'm pretty sure you can get some overtime and make some additional $$.

 

Flyby

Edited by flyby_heli
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Nobody takes the wind out of somebody's sails quite like Fry. I think I'll give up on my life long dream of being a helicopter pilot, because it just costs so much. Maybe Wal-Mart is hiring greeters.

 

Geeze do you always have to be so damn negative.

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But really, why does that guy always take it upon himself to rain on everyone else's parade?

 

I think fry is a greeter at walmart and gets his helicopter thrills by going to an online message board and insulting everyone that has the stones to do what he can't.

 

Good luck Freeplay, if you want it enough you'll make it work. I did and so did many others here.

 

Fly safe!

Edited by tvman345
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you need to be nice and have a positive attitude to be a greater. i can just imagine fry as a greater. talking about loans and percentages and financial matters with people. and telling the little kid not to waste his money on the machines at the entrance because he'll never win.

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Fry is not being negitive, he is just telling you what the real costs of going in to debt really is vs what the first 10 or so years pay as a helicopter pilot is going to be. Look at his post as just a useful tool nothing more. Nobody ever talks about what the job really is and what the pay really is and what you really have to do. Never mind about the traveling for interviews on your own dime. As boreing as the finance part of it is, in the end it is what will either make or break you. Phillip J. you are the man most days.

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you need to be nice and have a positive attitude to be a greater. i can just imagine fry as a greater. talking about loans and percentages and financial matters with people. and telling the little kid not to waste his money on the machines at the entrance because he'll never win.

 

Actually...I think Fry is sitting *on* the little machine at the entrance....you know the helicopter ride you stick the quarters in! (JK Fry :-)

 

In all seriousness...it seems from all that I have read here that no one is in this business for the money or what it takes to get there...it's the passion for flying that keeps gettingyou up each morning and lifting the skids off the ground...

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Why all the Fry bashing? He is just giving a realistic accounting (no pun intended) of the financial situation you would be in if you took out flight training loans. It doesn't matter if he is a pilot, or an accountant who wants to be a pilot, but didn't follow his dreams. What he said may have been slightly pessimistic, but whats wrong with pessimism? If you don't like what fry has to say, then don't read his posts.

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and then on the other hand, if you don't have anything positive to say don't say anything at all. i've read many of frys posts and never once have i sensed anything but pessimism.

 

How is that attitude any better than a pessimistic attitude? I've read many of fry's posts too, and he does have a pessimistic attitude. That doesn't mean he should be bashed because his glass is half empty. All he said is that you would have some serious debt if you take out flight training loans. Not that you shouldn't fly because of it. And for saying that, he is compared to a handicapped elderly greeter at walmart. I believe you also said that you would wipe your a** with his comments. Maybe you should follow your own advice, rather than trying to be smart...

 

P.S. Lets all (me included) get back on track with this topic. If you really feel the need to bash fry, then please start a new thread, in "As the Rotor Turns," or take it to PM's.

Edited by PhotoFlyer
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Somebody has to be the devils advocate and look at things from a different angle or point of view? We may not all agree with what people say, but there is a hint or more of truth to be said by what Fry said above.

 

How many people have forked out $70k plus (before interest) and have not taken a few minutes to figure out what it will cost them in 5, 10 or 20 years down the road along with all the unexpected costs that come with it? There seems to be alot of misnomers (sp) about the helicopter world, both in cost, making it happen and if the person will follow through everything.

 

Case in point, there was a new kid that came by the hanger a while back and I got to talking with him. We chit-chatted for a while, and he had this pie in the sky dream about being a helicopter pilot and making $120k/year after his CPL ticket. I am not at all an expert in this field by any chance, so I offered to him that maybe he ought to ask around and dig a little deeper to really find out what it will take to become a professional pilot and expected salaries before jumping headfirst. As a fellow student, I left it at that, but I can see where a few select schools can rope people with a dream into contracts and expensive loans. A sucker born every day I guess..... I just need to becareful myself as well.

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hey guys,

 

I have read a great deal of fry's posts and everthing he has said has been really really close to the truth with the truthfull numbers I have ran. he is not bashing on anyone, calling names or cussing anyone out. he is only stating the facts that everyone else likes to avoid. I really enjoy reading his posts because they make perfect sense. they are the absolut truth. he is not picking on anyone or raining on anyone's parade. if you think that a license is going to be handed to you with no payment , than you are smoking dope. sallie mae is the cop out way of doing things. sure they will gladly give you the money, and you could even start flying next week, but at what cost and for how long are you going to be suffereing for this loan. They even make your payments kind'of low. cause they drag out the agony for 10 -20 years. and they are laughing all the way to the bank while we are flying for pennies and trying to get to the wonder world of chief pilot for some company out in the middle of nowhere that flies rubber dog crap to third world countries.

 

anyhow, fry is speaking nothing but the truth, and if you think the truth is pessimistic than you are not ready to commit to your training or the loan..

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It's great to see some people finally sticking up for what fry is saying in these posts! I can admit that I am one of those suckers that took out a 30k sallie mae loan with 11%. I also know that I will have to take out even more. I was one of the ones that only looked at the posative aspects and obviously didn't get the great advice that only fry seems to be handing out. Now no matter how much I love flying it is going to make everything else I want to do in my life that much harder. The financial strain I am being put through currently and into the future makes me realize this is a dream I am going to make come true. Even coming to this site the only negative aspect of becoming a helicopter pilot was which schools sucked. So keep it going Fry every kid coming into these forums deserves to know about the financial burdon. Like they always told me in the fire dept. "Always expect the worst" that way you will have already thought about how to deal with it.

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It's great to see some people finally sticking up for what fry is saying in these posts! I can admit that I am one of those suckers that took out a 30k sallie mae loan with 11%. I also know that I will have to take out even more. I was one of the ones that only looked at the posative aspects and obviously didn't get the great advice that only fry seems to be handing out. Now no matter how much I love flying it is going to make everything else I want to do in my life that much harder. The financial strain I am being put through currently and into the future makes me realize this is a dream I am going to make come true. Even coming to this site the only negative aspect of becoming a helicopter pilot was which schools sucked. So keep it going Fry every kid coming into these forums deserves to know about the financial burdon. Like they always told me in the fire dept. "Always expect the worst" that way you will have already thought about how to deal with it.

 

 

Incurring debt for an education is common, whether for helo training or a bachelors/masters/mba/jd/phd... Unless the federal revenuers' give us all free education, we are stuck with the current system, or unless you can pay for it yourself, of course (& how common is that?), or unless you join Uncle Sam.

 

You are going to incur education debt no matter what profession you choose - so why if Fry obsessed with helo flying? Did he personally fail to become a pilot & is stuck with loans? Is he a pilot & just bitching because he can't afford payments?

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You are going to incur education debt no matter what profession you choose - so why if Fry obsessed with helo flying? Did he personally fail to become a pilot & is stuck with loans? Is he a pilot & just bitching because he can't afford payments?

 

 

well, fry is obsessed with helo flying for an uknown reason, as all of us are, maybe we took a ride or were facinated by helos. Of course fry is posting the financial burdon, which you all seem to think is negative, on a helo site were there are many aspiring pilots and people put in these situations, he is not calling out anyone or shooting anyones dream down, he is just letting the people who are not educated about how loans work and all of the interest that will accru. He is simply putting the facts on the table and letting you decide what to do with them, kindof like anyone else would, army reqruiter, flight school, landlord or whoever, except for fry is not bs ing anyone or sugar coating it. If you want the sugar coated version, go to ssh's website or any helicopter school website. they will quote you the faa minimums and just how easy it is to get the loan. anyone knows it is easy to get a loan, the hard part is paying it back, and swallowing the fact that a 60 thousand dollar loan will be 120 thousand by the time you pay it offf, and owning a house five to ten years after you finish your trainining will be extremly hard.

 

maybe fry did personally fail to become a helicopter pilot and is stuck with loans, but honestly , who cares. what does that have to do with anything, he is just stating his opinion like anyone else... " if you dont have anything positive to say, then don't say anything at all""" we have all heard this one, and by fry stating the facts, and some dumb naive person thinking that somehow this is negative, that just is over my head. If you think loans, numbers and interest is negative and just by looking at them turns you away and this sounds negative, I guess you shouldn't take out a loan then. You might have to work you butt off before you become a pilot, then just pay cash, would that be anymore positive. ofcourse not, everybody wants the loan now and to become a helicopter pilot now, they don't want to have to work now for it. they want to work hard for it later right.

 

even if fry is just a pilot, who is buried in loans, and just bitching about the loans. well that seems to be a great insight to a new and upcomming pilot. they might want to hear the truth. you are going to be paying on these loans forever, it is not going to be easy, nothing will be handed to you.... this is all the truth and is what everyone else 0n this site is saying. you can become a helicopter pilot ,,, for a large loan payment. that is all anyone is saying aboiut the stupid loans..

 

and if fry is buried in loans and just bitching about it, who cares, let him bitch, cause this is what goes on in internet forums... its a pissing and moaning contest and we are all the active participants.....

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