How to obtain finance to fund your training?

[Speedbird 9]

Having done my research, I have come to the conclusion that I must do my training in one block. However I have absolutely no idea of how to fund the $50K+ needed in order to get up to CPL. I am lucky in that my parents have offered to be the guarantors on a loan that I may take out. Could you knowledgable folk please give me a few pointers as to what the best loans available are and/or the best ways of paying for training.

NB I know never to pay upfront.

[Got the horn]

Come to NZ, get a student loan. Easy as pie.

[Tempo]

And then skip the country!! :ok:

[Got the horn]

Hit the nail on the head!

[Skystar320]

get a job?

[flyhigh744]

You could either join the RAAF or even apply for a cadetship which would save you money.

[Mick.B]

Become a Tradie for a couple of months. :p.

No seriously, get a job that you can support the loan . You have a good idea and banks do lend the money if you have the backing of a parent. You can rip right into the training without having to worry to much about where the money for your next lesson will come from. Your probably going to be paying back over a grand a month for a 5 year loan. Go for it.

[Oktas8]

Get a job and save up.

(Speaking as a flight instructor) the ones who do this are usually more mature and progress in the industry more quickly than those who took out loans. I think that it's human nature to work harder and whinge less if you've worked for your goals.

You might be very mature already - no disrespect intended.

O8

[flysaucer1200]

Hi Speedbird nine, and other people looking to fund a CPL and extra’s

If you are serious about flying, and you don’t mind leaving the country, New Zealand is still issuing loans for flying courses. Funded through a provider, such as Nelson Marlborough Institute of Technology (http://www.nmit.ac.nz/)
( Here is the link- http://www.nmit.ac.nz/ (http://www.nmit.ac.nz/) ) or another provider that can offer flying courses ( here is the link for the list of education providers- http://www.nzqa.govt.nz/providers/index.do (http://www.nzqa.govt.nz/providers/index.do) )

I am a kiwi, but I know of some Aussies that are here gaining there CPL licence and other important credentials, such as Command Instrument Rating, Instructor Rating, Time building in twins such as Duchess , Seminole and Senecas, GPS Endorsement, night rating, NZ ATPLS, NZ Basic Gas Turbines exam- all these are fully funded by the Government of NZ. The only thing you are required to pay for, in regards to aviation is your medical.

From the Aussies I speak to and also speaking to a man in or of authority at a Paraparaumu flying school, its seems possessing an Australian passport will validate a person for entry into a flying course that has access to a student loan. The Aussies tell me that some schools are apathetic or unimpressed by this idea, so be warned, make you case clear to the schools here that you are for real and not just dabbling in an idea. As, some have seem to have flown across the ditch, East bound, tried aviation through the opportunity of funding aviation courses and then desisted from the courses returning to Aussie knowing that aviation wasn’t truly for them.

Additionally, having an Australian passport and living in New Zealand, more or less with out leaving, for 2 years ( 24 months ) ( so that you provide evidence that NZ was your only home for 2 years ) validates a person to gain access to a flying course with full funding and, also allows this person to be able to have student living allowance ( single with no spouse- around 200$ week plus rental allowance- 40$ - total- around $250 week ) And, what’s interesting about the weekly allowance is not required to be paid back to the government. That’s of course if you qualify ( meaning you or your parents aren’t earning or don’t have assets above a certain threshold. But, generally most people will qualify )

In fact, at the beginning of each 12 months of your study, the branch of student loans of the government department at WINZ ( Work and Income NZ ) will offer you 1000$ for additional expenses. The system is very easy to use and very easy to obtain 1000$ that is available to you. Quickly, most people write Petrol on there form, and that is automatically substantial evidence for the money to be deposited into your account. Any way, the point is that money is helpful for living expenses and aids gaining or updating you aviation medical.

Remember that the loan is as such and a contract will be required to be signed and adhered to, right? Well, if you remain inside NZ no interest will be accumulated on the loan. Once you leave NZ for more than 183 days, then interest will be accumulated on the loan. Tis interesting however to note that an amount of distraction remains with students, of all ages with the conversation of repayment. The mood of repayment does seem to be exactly along the lines of you first few replies of ‘Get the Horn ‘ and Tempo”

To sum Speedbird 9 ( are you British? ), if you come to NZ with an Australian Passport declare you case at a flying school that has student funding. You will be able to gain complete funding of the course here. Or, if you can remain in NZ for around 2 years you will get funding and also complimentary weekly allowance. Once your course is done, and this should all be able to be completed in 1 to 2 years, and you have gained your aviation credentials simply convert, with the fee of around 380$, your NZ licence to an Aussie licence.

Quick note- might be possible to gain access to weekly allowance if you have been here under 2 years, but weekly allowance must be repaid.

If you have any questions please PM me and I’ll help.
Flyingsaucer1200 :)

[1a-tej]

Why oh why doesn't Australia have something similar in place???:ugh:

[McFlyte]

If you do get a loan to cover CPL training, is the interest tax deductible?

[ryanbodilly]

If only the Australian govt. would wake up and put somthing like this into place :E

[McFlyte]

They may be, with something like this:

http://www.pprune.org/forums/showthread.php?t=315451&highlight=HECS

I must admit I didn't read the whole thing, but perhaps some form of subsidisation will be offered.

[desmotronic]

Speedbird 9,
You might like to look into a credit card. Once you have one and maintain good conduct on it they are ridiculously easy to inrease the limit on and are often lower interest rate than personal unsecured loans. In fact if you have an ongoing balance you can transfer the balance to a new card for a limited period of time, say up to 12 months, at zero or close to zero interest. When the low interest period expires just roll the balance over to new card. Sometime you will have to pay it back but that strategy should keep you going close to interest free for a few years. Cant do better than that especially when inflation is 4% plus! If you do it right the real rate of interest can be negative, ie the bank pays you!!! The catch is the high interest rate after the honeymoon preriod expires so you must roll it over.

You will need a full time job though and answer the application questions 'correctly'. The applications are assessed by a computer which doesnt like for instance frequent changes of address, less than full time employment, or significant other financial liabilities.

[krankin]

Dont listen to all this crap!!

Just get on your knees and open wide!!!

[Mick.B]

Steady up dude.

[Speedbird 9]

Thankyou everybody that has contributed so far. I have been very busy doing research regarding the New Zealand FTOs in the last few days. Anybody else have any other techniques to obtaining finance?

[Jango Fett]

Go to Uni. Get an IT degree. Make lots of money and laugh at the pilots that fly for you.

[Rawrawhammer]

"Go to Uni. Get an IT degree. Make lots of money and laugh at the pilots that fly for you."

:\
IT average salary = 77k
Airline Pilot average salary = 107k

who wins?
who works lesser hours?
who love there job?
who doesn't have to sit on a desk from 9-5?

Speak for your self when you speak out of your a** :ok:

[WannaBeBiggles]

IT average salary = 77k
Airline Pilot average salary = 107k

who wins?
who works lesser hours?
who love there job?
who doesn't have to sit on a desk from 9-5?

Speak for your self when you speak out of your a** :ok:


Can't help but to play devils advocate here... BUT...

1. The average salary for I.T is around 77k, however there is a LOT more money to be made... with the majority of people who spend say 5-8 years in I.T. (and are ambitious) will see them at least match the average of 107K, if not blow it out of the water.

2. As with any job, some people work smarter, not harder, and taking time off can be a lot less of an issue.

3. One only has to look at PPRUNE to see that not all people love their jobs flying.

4. A cockpit has much less room than a desk, not to mention the potential hazards, such as increased radiation from space, which of course is something only under investigation, but plausible.


Having said all that, I, like many before me, and many many to follow, have left my 6 figure salary behind in pursuit of that office with the 40,000ft view :ok:

[Speedbird 9]

Thanks for your suggestions everybody but I'd rather get a loan and work part time than get qualifications in IT. Anybody else that has got a few tips on how to get a secured loan with a differed repayment period (for training time) and a lowish interest rate.
Cheers guys.

[Jango Fett]

Buy a house, pay it off with your IT degree, then borrow your equity back at a "lower inyerest rate".

OK I was being a smart bastard when I posted my first but I really think it is a good idea to have another trade if you want to be in this industry. IT is only one that would help. LAME would be another great boost if you are going throught the GA trail. If you going to work remote than electrical or building, mechanical, many many more would help you earn more than the 'AVERAGE' GA wage, F**K nose what that is but you will be lucky to get super or holliday pay with it. If you work GA long enough your company will go broke and you find yourself F**KED AND FAR FROM HOME. trying to tell someone you have a HSC is not going to help.

If you don't have rich parents to pay your way you may find things very hard in this industry. Take your chances as a raw recruit or get some substance behind you. The pilot shortage will no t last forever and like my friend says, all you have to do is look at PRUNE to see that even now all is not well inthis industry. I havn't googled IT.RUNE but think it would not be anywhere near as much fun as here.

All the best.

[Mr. Hat]

Get a job on a mine site.

Just don't get stuck there.