Hi Ratpup,
Good post and all I can really say is go for it! Came from an Air Force and Airline family myself so had all the exposure and had all the opportunities to fly as a teenager. It was the thing, above anything else, I actually felt really good at and if there is one thing I have ever wanted to do and actually think I would be trully proficient at doing - it's flying.
However, 12 years after first soloing, I'm here in London at age 29, only now having paid off my £10,000 of student loan from a university degree, and in the last few months having faced (in part due to a particularly blunt ex-girlfriend) the fact that the dream I have always held on to, no matter how distant it seemed is now really just that - a dream.
There is no way in hell I can save the £12,000 of living costs (earning 20K a year in London) I'll need to see me through an integrated course, let alone the £60,000 I'll need to do the course with no property or other assets to secure such a loan. Added to that - I'm "old". I try to tell myself that actually I wouldn't have liked it anyway, but the bottom line is that it's pretty heart breaking to see the opportunity slipping away.
For the first time ever I have stopped telling people my ultimate ambition is to be an airline pilot. I've faced facts it's never going to happen. By the sounds of it you have got some of the experience and are headed in the right direction. I don't know how old you are, but if you are in your mid-20's then theres still plenty of time it seems.
As for the debt...it does feel good to pay it off, but if you're going to just go back into debt through training, perhaps clearing that debt shouldn't be the biggest priority. Instead, save the £10K or so and continue minimum payments on loans. Sounds crazy, but the bank will be happy to see substantial savings and will also be happy that you are still in debt paying them interest. Aim for the goal, because, as so many people have said, you don't want to spend the rest of your life regretting you didn't.
Just like jumping on the property market or starting a business it appears there are risks involved, but as long as you are in the air and still have the potential to fly then why not just go for it. The rewards might just be tremendous.
Debt is one thing, but seeing the dream slip away is far worse - believe me.
There seems to be a lot of negativity about the industry as a whole, and while I can't speak for employment rates, from sitting in a minging office for long hours, with virtually no career progression, I fear that those who criticise the state of the industry fail to realise that nearly ALL professions are like this.
Best of luck!