Originally Posted by
wannabepilot1
Hey everyone,
I’ve read up a lot on the REX cadetship, and one thing that confuses me is the cost of the program.
“The Programme fee is AUD $105,000. This is all inclusive of CASA charges, exam fees, theory,text books, Jeppesen Charts, flight and simulator training, uniforms as well as food and board. However there are additional charges for repeats of sorties due to failure to meet standards. The Cadet needs to be able to pay up front AUD $25,000 at the start of the Programme.”
So of course, I understand a $25,000 upfront cost is required, leaving $80,000.
“If the Cadet resigns within the initial seven years, the outstanding loan and accrued interest (at 10% compounded) become due and repayable by the Cadet in full, immediately at the last day of employment with the Company.”
What I want to highlight is the Interest (at 10% compounded)
So I just wanted to clear things up as to how much the loan will be, and whether or not it attracts interest as other posts on this thread claim it is only $105,000 in total excluding interest, which today, is pretty good for pilot training.
If that's true, that seems absolutely outrageous.
$80,000 debt at 10% compounded interest (assuming compounded annually?) would be $156k in 7 years time. So if you leave after 6 years, you're up for nearly that much?
Or, does the $80,000 'reduce' over than 7 years - like an imaginary repayment/amortisation schedule?
FFS amazes me that kids who supposedly have the ability to do math for aviation CPL/ATPL somehow can't work out how much they're going to ruin their lives with these huge bonds or training debts.
