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Thread: Oxford and CTC
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Old 20th Feb 2005, 18:41
  #11 (permalink)  
mbcxharm
 
Join Date: Mar 2002
Location: UK
Age: 48
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The ultimate cost of the CTC scheme in fiscal terms alone is hard to quantify. The things I would say to bear in mind when making any comparison are:

1) The CTC bond is repayed over 7 years at 1000 pounds per month which is quite a lot (but if you think of it as part of your salary then you have to take into account that you don't pay income tax on it!). This leaves you with quite a tight monthly budget compared to someone who is paying a loan back over a longer term (obviously cheaper in the long run though).

2) With the CTC scheme, on graduation, you should go straight into the RHS of a jet and have an (albeit reduced) salary commensurate with that. Not saying that you won't after an integrated course though, I know several people from (for example) Oxford's APP scheme that have done the same.

Ultimately, with CTC you are going to give the bank about 84000 pounds (but not out of your taxed salary) having borrowed 60000 to pay your bond. Any extra you take out for living expenses (on top of a potential 5000 for the 14 months or so from a sponsoring airline) will obviously increase that.

Any bond with your ultimate employer for the type rating is usually wiped out automatically after (for example) 2 years after which you would owe the company nothing for your type rating having paid nothing for it.
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