Financing question again

[Helihead]

I am reading this other post and it says it would cost 200K to finance helicopter training 100%? i asume that is if you pay the minnimum payment for like 15-30 years. that seemes a little high. how much would it cost if you were able to pay it off in three years not the full term? anyway, If I pay for half of my training out of my poket, 25,000 what can I expect for payments?/interest, and can you pay a SLM loan early without penalties. How much would go to interest an the principal balance? I am pretty sure thats what I am going to have to do.

If anybody has any good way to go about this PM me please.

Or should I finance Helicopter training 100% and take the money I have and put it on a down payment on a small house once I am done with training?

I want to show I have a history of repayment on something before I buy a home, and right now I have no car loan and I payed off all my other school loans quickly and someone I know is telling me. I didn't pay them off slow enought to show I can keep making payments over a long period of time even though I have never had a late payment. Just want to make the best finacial decision and looking for some input.

I am Just hearing a lot of different things and would like to know what the majority of you think would be the best way to go about this? I dont think I want to pay as I go. Once I start training I want get the training done asap (safety first sont worry) and try to work as a CFI or anything else asap.

Thanks again.

[jehh]

The loan calculator at BankRate is a very good one... It has options for paying more towards principle, among other things:

 

http://www.bankrate.com/brm/popcalc2.asp

 

If you borrow $70K over 15 years and pay 11% interest, your payment will be $795.62 per month. Times 180 payments that is a total of $143,211.60. Not quite $200K, but still a lot of money. Then again, have you checked out what paying for a house over 30 years costs? A $100,000 house will cost about $300K by the time you're done paying for it. However in 30 years it should be worth about $300K, so that works itself out.

 

Likewise, a helicopter program that costs you $143K over 15 years sounds expensive when your starting pay is $60K, however 15 years from now your payments will still be $795 a month, but you'll be making a lot more than $60K. That is what many people miss when trying to figure the benefit to any type of education loan, the long term benefits rise with inflation, however the monthly payments do not.

 

Yes you can pay a SLM loan early without penalties.

 

It sounds like you're getting conflicting advice about credit. Keep in mind that most people simply do not understand how credit works, so take all advice (including mine) with a grain of salt. The advice you've gotten about payment histories is correct, you do need to show history of paying off unsecured loans to establish credit. Credit cards are great for this and having them is the first step to building a thick credit file.

 

From what it sounds like, you'll need a co-borrower to get a SLM loan. That is the first thing I'd get in place before worrying about anything else. If you don't have that, there is always college.

 

More questions, ask away...

[fry]

Or should I finance Helicopter training 100% and take the money I have and put it on a down payment on a small house once I am done with training?

 

Here's a pretty good wedsite with the payscales of the various operators in the industry:

 

http://www.helicoptersalaries.com/pay_scales/index.htm

 

Notice the annual changes in pay...e.g., AirLog goes from about $55k for a IFR PIC to about $85k at 15 years. That's annual (after inflation) raises of about 3% (some years 1%, one year 5%, most years 2 & 3 percent). A respectable blue-collar living.

 

But for a $70k investment...and a modicum of ambition...you could do better.

 

Also, that "small house", is it going to be in Louisiana or Mississippi? Because that's where the jobs are. Any kids, or plans for kids? Check out the quality of k-12 schools in Louisiana and Mississippi.

 

Good luck

[jehh]

Now Fry, that isn't fair...

 

Someone who has been at Air Log for 15 years did their training 15 years ago, spending no more than $30K on it. Spending $30K on training to have a $85K a year job isn't that bad, now is it?

 

In 15 years, that same job will probably pay twice what it does today.

 

As for starting pay, between per diem, offshore bonuses, flight pay bonuses, quarterly safety bonuses, etc. $60K to $70K is the starting pay in the Gulf these days. A few days of work over here and there and it really isn't that bad. A CFI of mine left in 2006 to work for Era, he made $74K his first year in the Gulf with only a little overtime.

 

I didn't have a house in Louisiana or Mississippi, I live in Dallas and drove back and forth to Galveston, TX every two weeks. I'd still be there if we had not had our first child a few years ago. That is when I moved on to a local EMS job so I could be home with the family every night.

 

Sure beats working at a desk anyway...