WHAT AM DOING?..Reassurance needed
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WHAT AM DOING?..Reassurance needed
Ok, what the hell am I about to do? I've just arranged a loan from HSBC to finish off my licenses.....
I've got 170 hours TT and I sit the remainder of the ATPL subjects in October. I've got this far debt free. I then start the Professional Pilot Package with oxford in November. That costs £20,295 plus the skills test fees of £2600, add accommodation and it's around £25,000. I've arranged a loan of £30,000! yes 30K! (5K for contingency and maybe a JOT course at the end).
The loan repayments are going to be £473 per month plus £10 life insurance for 7 seven long years. I've got a 6 month grace period.
Now, I'll be 26 with just under 300 hours TT. What sort of job can I realistically land with these hours to pay for such a loan?
I need serious reassurance. ( I haven't signed on the dotted line yet)
Thanks.
I've got 170 hours TT and I sit the remainder of the ATPL subjects in October. I've got this far debt free. I then start the Professional Pilot Package with oxford in November. That costs £20,295 plus the skills test fees of £2600, add accommodation and it's around £25,000. I've arranged a loan of £30,000! yes 30K! (5K for contingency and maybe a JOT course at the end).
The loan repayments are going to be £473 per month plus £10 life insurance for 7 seven long years. I've got a 6 month grace period.
Now, I'll be 26 with just under 300 hours TT. What sort of job can I realistically land with these hours to pay for such a loan?
I need serious reassurance. ( I haven't signed on the dotted line yet)
Thanks.
Why do it if it's not fun?
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Hmm, if you're looking for reassurance that you'll be able to get a job with a salary to be able to pay off your loan, you've probably come to the wrong place, because there are no such guarantees.
On the other hand, if this is what you really want to do, you have to take that chance. If you do but it doesn't work out, at least you'll know you've tried your hardest. But if you changed your mind know, you may live to regret it.
On the plus side, though, there are jobs out there at the moment. Not sure how many of these are going to be able to cover nearly £500/month on your loan, as well as provide you with enough to live on, but now seems to be the right time.
Is there any way you can extend the repayment period on your loan in order to bring down the monthly cost? Maybe you could sacrafice your 6-month grace period to negotiate a longer repayment period, but add an extra few grand onto the loan - that way, you can put aside the extra few grand to cover the first few months' repayment, but the size of your monthly payments will be small enough that you might have a realistic chance of being able to pay them off when you get your first job. I've funded my IR and MCC by re-mortgaging my house. Because the repayments are spread over such a long period (indefinite in my case, because it's a buy-to-let mortgage, but the same would apply for a 25-year mortgage) the repayments are quite manageable even on what I earn as a flying instructor.
Good luck!
FFF
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On the other hand, if this is what you really want to do, you have to take that chance. If you do but it doesn't work out, at least you'll know you've tried your hardest. But if you changed your mind know, you may live to regret it.
On the plus side, though, there are jobs out there at the moment. Not sure how many of these are going to be able to cover nearly £500/month on your loan, as well as provide you with enough to live on, but now seems to be the right time.
Is there any way you can extend the repayment period on your loan in order to bring down the monthly cost? Maybe you could sacrafice your 6-month grace period to negotiate a longer repayment period, but add an extra few grand onto the loan - that way, you can put aside the extra few grand to cover the first few months' repayment, but the size of your monthly payments will be small enough that you might have a realistic chance of being able to pay them off when you get your first job. I've funded my IR and MCC by re-mortgaging my house. Because the repayments are spread over such a long period (indefinite in my case, because it's a buy-to-let mortgage, but the same would apply for a 25-year mortgage) the repayments are quite manageable even on what I earn as a flying instructor.
Good luck!
FFF
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Frankly it's a risk and a lot of money so anyone who gives you the classic 'heck go for it you only get one life!' clearly hasn't lived enough of that 'one-life' to realise exactly how much money £30k is and what a typical FO salary will buy you (if you are lucky enough to get a job that is).... frankly you are right to be concerned... that would strike me as an extremely rational reaction to borrowing the amount of dosh you have
BUT on the positive side it should help focus your mind on the importance of working hard and getting the most out of your training (first time passes etc if possible) to give yourself the best chance of landing a job at the end of it.... and ultimately if you have an exisiting career that you can fall back on you are not going to ruin your life by taking out a £30k loan if it all goes Pete Tong.... although the repayments could severely curtail your social life for a few years! Lets not forget you will probably have the best 6-12 months of your life during the training and memories to last a lifetime.
Some people are borrowing twice the money you are to fund their training..... that strikes me as very brave... I'm sure there are people out there that will consider you lucky to only have to borrow £30k!
Anyway good luck and enjoy your training and I'm sure with enough determination you will get to that RHS at 30,000ft
GSB
BUT on the positive side it should help focus your mind on the importance of working hard and getting the most out of your training (first time passes etc if possible) to give yourself the best chance of landing a job at the end of it.... and ultimately if you have an exisiting career that you can fall back on you are not going to ruin your life by taking out a £30k loan if it all goes Pete Tong.... although the repayments could severely curtail your social life for a few years! Lets not forget you will probably have the best 6-12 months of your life during the training and memories to last a lifetime.
Some people are borrowing twice the money you are to fund their training..... that strikes me as very brave... I'm sure there are people out there that will consider you lucky to only have to borrow £30k!
Anyway good luck and enjoy your training and I'm sure with enough determination you will get to that RHS at 30,000ft
GSB
