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If folks are still looking to Sallie Mae for training $$..


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We may have to look somewhere else:

 

http://www.foxbusiness.com/markets/industr...r_448182_9.html

 

"...Sallie CEO Albert Lord said the company is shying away from lending to students it considers unlikely to graduate or attending schools with inferior graduation rates."

 

"The company announced earlier this month that it will cut back on its core business of making student loans, but executives homed in Wednesday on the importance of graduation as a predictor of an individual's higher earnings potential and likelihood to repay loans. People attending less "traditional" schools, offering associate degrees or with low graduation rates, will be far less likely to get loans from Sallie Mae, even at high rates, under the new policy."

 

"Less traditional schools" = helicopter schools...

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I think I am kind of happy about that situation. Less money means less pilots, which means more jobs, which means more pay.

 

That doesnt make a lick o sense coming from a student. Who do you plan on teaching to get your 1000 hours? You may find yourself with no job beacause of this, not a better one with higher pay.

 

someone should do a poll and see how many pilots got their training dollars from SM, its prolly less than a third.

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There are banks out there that will loan money for flight training. The problem is the school has to jump thru some hoops to get it. Accreditation and Title IV for starters. I used the Key Aviation Loan. I was charged 4% during the 18 month deferment and now it has adjusted to the low 8% range in repayment. My Key loan is backed by Great Lakes, “Great Lakes is a non-profit corporation with two operating subsidiaries: Great Lakes Higher Education Guaranty Corporation and Great Lakes Educational Loan Services, Inc.”

 

The problem with the Key Aviation Loan is that it is not offered any longer due to some schools misusing or abusing student monies. If my source is correct, a large fixed wing school and a heli school were involved in helping put this loan program to death.

 

There are other financial means from other bank sources, but they charge higher interest rates or give smaller loans that won’t cover a full heli course. I looked a few months back at every state Key lists and only found one fight academy that is Title IV and Accredited, it’s a fixed wing school in FL called Ari Ben Aviator. Bristow shows to be Accredited in FL only but doesn’t show to be Title IV, someone correct me if I am wrong here. I was thinking there was a heli school on the west coast that was accredited, but can’t remember or find out who it is by google searching it.

 

Larger schools are going to have to step up to the plate here if they want to keep a large inflow of students. I know Accreditation and the Title IV is going to be a far reach for many of the smaller schools to obtain and at a pretty good cost too, I would think, and as well as time consuming.

 

Some flight schools are indorsing colleges in hopes of getting students to use them and get credit for the flight hours on a degree at the college they are indorsing as well as monies for training thru the college financial office, like what Vortex started with Louisiana Technical College in LA with the Teri Loans, that Bristow Academy has now taken over.

 

Money will still be available I think, but will be harder to find and will be in smaller amounts if the current way of doing things doesn’t change. Maybe even some of the large schools like Bristow could finance the training since they don't depend on flight training funds for the whole company to operate on. This would help both sides, finance the cost of training and the company could hire the pilot or allow the pilot to work elsewhere, and the company would still earn the interest off the loan.The larger companies already have the lawyers and finance officers on staff anyways to develope the required contracts.

 

jmho

 

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CRAP!!!! I've been expecting this, but hoping I could get my loan before it happened. The article mentions associates degree programs, but didn't mention the bachelor program. Am I being overly optimistic in thinking that I still might get loans through Sallie Mae if I am enrolled in the bachelors program?

 

I'm in the process of getting my transcripts transferred and applying for financial aid and all that fun stuff, but it takes time and I'm nervous!!! I moved into a friends basement last May to save up money and plan on starting my training in July. I'll have 20K - 25K saved up. I live in Philly and I will have to relocate (most likely to WA). Bottom line, once I move the good paying job and cheap living ends. If I can't get loans, it'll take forever to finish. My credit is on the low side of fair, but I'm 100% debt free and the score is improving. I'm 35 and hope training doesn't become a 5 year thing. I'm dedicated, determined, willing to pay my dues and willing to travel. One way or another I'm going to make this work!!! If any one has any more information on this subject or advice about my situation, please share!!

 

Thanks

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