Loans for funding flying training.
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Paying For Training`
Hi there,
I plan to start applying to flight schools within the next couple of months and I plan to play for my training through loans (from the bank recommended by whatever FTO I choose).
From my research I think the best chance of employment after training would be with a Turboprop operator (which would be great) however the Prop wages are not as high as jet and so would paying back the £60k + loans not make finances very tight.
An example would be if I went to FTE and was lucky enough to land a job with Loganair, I would be starting on approx £20k and I would have to pay back the loan from this.
I suppose my main question would be if I took out the whole amount to pay for my training what would the repayments be and when would they start?
This would also be important if after training I was unfortunate not to land an job with an airline as i would still have this large debt to pay back.
AE
I plan to start applying to flight schools within the next couple of months and I plan to play for my training through loans (from the bank recommended by whatever FTO I choose).
From my research I think the best chance of employment after training would be with a Turboprop operator (which would be great) however the Prop wages are not as high as jet and so would paying back the £60k + loans not make finances very tight.
An example would be if I went to FTE and was lucky enough to land a job with Loganair, I would be starting on approx £20k and I would have to pay back the loan from this.
I suppose my main question would be if I took out the whole amount to pay for my training what would the repayments be and when would they start?
This would also be important if after training I was unfortunate not to land an job with an airline as i would still have this large debt to pay back.
AE
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Rough example for repayments, warning this is going to hurt!
Say the cost of the course is £60k. You take a loan out for this amount. Most of these loans, the OAT / HSBC arrangement for example are set to be repayed over 7 years but ultimately you decide your repayment terms. You don't begin repaying the loan until after completion of training. Most banks give you 6 months on top I think.
Current combined interest rate (base + whatever the bank charges) is around 5.5%. Therefore your loan will become 60,000 x 1.055^7 = £87,280 by the time you finish paying it off.
£87,280 / 7 = £12,468 per year
£12,468 / 12 = £1,039 per month.
So that's £1,039 every month for 7 years. You need an annual before tax salary of roughly £15,000 just to pay off the loan.
A 1 bedroom flat outside London will cost you £500 per month in rent if your lucky. That's £6,000 per year plus bills and council tax.
Oh and you got to eat. That normally costs about £50 a week or close to £3000 a year.
So, what salary do you need to survive in your first year?
Loan = £12.5k
Rent = £6k
Bills = £2k
Food = £3k
Total £23.5k after tax, roughly £30k before tax. That is what you need to earn.
Or forget about Integrated training, be true to yourself, be realistic, and opt to do it the Modular way.
Note: Please someone check my math and slap me down if I've miscalculated anything.
Say the cost of the course is £60k. You take a loan out for this amount. Most of these loans, the OAT / HSBC arrangement for example are set to be repayed over 7 years but ultimately you decide your repayment terms. You don't begin repaying the loan until after completion of training. Most banks give you 6 months on top I think.
Current combined interest rate (base + whatever the bank charges) is around 5.5%. Therefore your loan will become 60,000 x 1.055^7 = £87,280 by the time you finish paying it off.
£87,280 / 7 = £12,468 per year
£12,468 / 12 = £1,039 per month.
So that's £1,039 every month for 7 years. You need an annual before tax salary of roughly £15,000 just to pay off the loan.
A 1 bedroom flat outside London will cost you £500 per month in rent if your lucky. That's £6,000 per year plus bills and council tax.
Oh and you got to eat. That normally costs about £50 a week or close to £3000 a year.
So, what salary do you need to survive in your first year?
Loan = £12.5k
Rent = £6k
Bills = £2k
Food = £3k
Total £23.5k after tax, roughly £30k before tax. That is what you need to earn.
Or forget about Integrated training, be true to yourself, be realistic, and opt to do it the Modular way.
Note: Please someone check my math and slap me down if I've miscalculated anything.
Guest
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Hi there,
'Say the cost of the course is £60k. You take a loan out for this amount.'
HSBC will only loan a maximum of 50K secured. I am not aware of any UK bank that will loan the full amount of a professional studies loan, you could loan the full amount on a mortgage but payments begin straight away.
'Most of these loans, the OAT / HSBC arrangement for example are set to be repayed over 7 years but ultimately you decide your repayment terms.'
The HSBC loan is set to be paid over a maximum term of 11 years, although there are no penalties for paying the loan off early.
Regards
JetSetJ
'Say the cost of the course is £60k. You take a loan out for this amount.'
HSBC will only loan a maximum of 50K secured. I am not aware of any UK bank that will loan the full amount of a professional studies loan, you could loan the full amount on a mortgage but payments begin straight away.
'Most of these loans, the OAT / HSBC arrangement for example are set to be repayed over 7 years but ultimately you decide your repayment terms.'
The HSBC loan is set to be paid over a maximum term of 11 years, although there are no penalties for paying the loan off early.
Regards
JetSetJ
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Aero, I suggest you research becoming a pilot like your life and financial status depended on it! Pilots are not that well paid upon graduating, from flight school. Even after five or six years, you are probably looking at around 40k (you may be lucky to get that after 7 or 10 yrs), excluding loan repayments (ie. type ratings etc).....which really isn't that good compared to other professions.
Think of it this way, you have 60k...you want to fly.....go to flight school and spend it. Come out with a JAA CPL etc etc etc..... only to find that a lot of major airlines require experienced pilots and the ones that are recruiting, will pick the very, very best!
You seen the film, 'The Terminator'?........basically, looking to the future........pilots may be replaced by extremely advanced technology...basically robots. What do you do then? Sorry bank manager, can't pay you this month, i've been replaced by a robot!
Pilots do the job because they love it, not for the pay!
Superpilot, your calculations are correct
Think of it this way, you have 60k...you want to fly.....go to flight school and spend it. Come out with a JAA CPL etc etc etc..... only to find that a lot of major airlines require experienced pilots and the ones that are recruiting, will pick the very, very best!
You seen the film, 'The Terminator'?........basically, looking to the future........pilots may be replaced by extremely advanced technology...basically robots. What do you do then? Sorry bank manager, can't pay you this month, i've been replaced by a robot!
Pilots do the job because they love it, not for the pay!
Superpilot, your calculations are correct
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£50 a week for food? Blimey. If you budget you can spend half this (I have) - even in London. Smart price won't kill you, and might save you £1k - £2k. Doesn't sound much - but as they say, every little....
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Actually I think youll find the loan repayments are higher than that. The HSBC one ive just taken out is 2.75% above base rate...so 8% at the moment. This means by the time ive fniished its around £95k to pay back ~£1100 a month. Ouch.
If you get 'sponsored' say by CTC you will get £1000 a month towards this (tax free) meaning you have about £100 a month extra to pay. This equates to around £2k off your salary a year (with tax). However if you have other loans (such as one for living expenses) you can epect to have about £200 a month to pay back for that. All in all Id say around £5k a year from your salary. Now cut salary whilst your making these repayments is probably ~21k so this leaves hopefully around 16k to live off of, be it on a house or the worlds finest cuisine.
If youre not sponsored youll hopefully have a starting salary along the lines of 33k and only have the extra tax as the difference in earnings.
If you get 'sponsored' say by CTC you will get £1000 a month towards this (tax free) meaning you have about £100 a month extra to pay. This equates to around £2k off your salary a year (with tax). However if you have other loans (such as one for living expenses) you can epect to have about £200 a month to pay back for that. All in all Id say around £5k a year from your salary. Now cut salary whilst your making these repayments is probably ~21k so this leaves hopefully around 16k to live off of, be it on a house or the worlds finest cuisine.
If youre not sponsored youll hopefully have a starting salary along the lines of 33k and only have the extra tax as the difference in earnings.
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Thanks for all the replys.
So if you plan to pay for your training through loans, which i do, landing a job on a Prop Airline (flybe, loganair etc) when your training is complete would mean you would have little to no money left to live on.
From what i have researched
Turboprop Operators start on approx £20000
Turbojet Operators start on aprrox £30000
AE
So if you plan to pay for your training through loans, which i do, landing a job on a Prop Airline (flybe, loganair etc) when your training is complete would mean you would have little to no money left to live on.
From what i have researched
Turboprop Operators start on approx £20000
Turbojet Operators start on aprrox £30000
AE
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Student Loans for EU student
Hello!
I've been browsing this forum for quite some time, but haven't registered until today. I am currently in High School and graduating this June. It's not an exaggeration to say that my whole life is aviation, be it real world, computer simulators or aviation photography. I got the JAA PPL on my 18th birthday last September. As I now approach the point where I should take the very important step towards becoming a professional pilot, I am seriously looking for all kinds of possibilities to do it. I live in EU, but I would so much like to do the studies in the USA and maybe also get a job there.
Anyway, enough of myself - let's get to the question. As no bank in Estonia gives student loands for amounts like 50,000 USD, I need to get the financial aid from somewhere else. Does anyone know if some bank in the USA or in an EU country offers a student loan to someone who is not a citizen in the particular country? I believe there must be a way for me to get a loan
Thanks a lot!
I've been browsing this forum for quite some time, but haven't registered until today. I am currently in High School and graduating this June. It's not an exaggeration to say that my whole life is aviation, be it real world, computer simulators or aviation photography. I got the JAA PPL on my 18th birthday last September. As I now approach the point where I should take the very important step towards becoming a professional pilot, I am seriously looking for all kinds of possibilities to do it. I live in EU, but I would so much like to do the studies in the USA and maybe also get a job there.
Anyway, enough of myself - let's get to the question. As no bank in Estonia gives student loands for amounts like 50,000 USD, I need to get the financial aid from somewhere else. Does anyone know if some bank in the USA or in an EU country offers a student loan to someone who is not a citizen in the particular country? I believe there must be a way for me to get a loan
Thanks a lot!
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the best would be to get yourself a decent job, then save money and in 15 years buy yourself an aviation training if you have enough cash.
what I want say: stay away from these crooks of banks...be debt free and have a normal life .
what I want say: stay away from these crooks of banks...be debt free and have a normal life .
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That's a way However, in my country I'd have to work for 60 years to get the amount for a US school. Even more for a JAA one! So unless I was a pilot or became rich with business, I'd never earn the money here. My one and only wish is some aviation related job abroad and I really hope I can work the things out to get the ATP license.
Having a loan is really bad, but it might be the only thing I can do. Normal life for me would be to earn 2000 USD a month for flying and pay 1000 of it to a bank than sit in an office in Estonia and earn 1000 USD
However, in my country I'd have to work for 60 years to get the amount for a US school. Even more for a JAA one! So unless I was a pilot or became rich with business, I'd never earn the money here. My one and only wish is some aviation related job abroad and I really hope I can work the things out to get the ATP license.Having a loan is really bad, but it might be the only thing I can do. Normal life for me would be to earn 2000 USD a month for flying and pay 1000 of it to a bank than sit in an office in Estonia and earn 1000 USD
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Financing / Loans
I have finished ATPL groundschool and am now hour building and looking to start the CPL/IR soon, however I think it is still going to cost £25,000 from starting the CPL. I plan to borrow £8000 on a career development loan.
Has anyone any suggestions on the best way of raising the remaining £17000
without a morgage?
Has anyone any suggestions on the best way of raising the remaining £17000
without a morgage?
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Finance Question
Hi All,
If your able to receive the loan of £8,000 as the CDL. How are you to get the rest of the money from the bank??? One would assume that the remainder of the cash cannot be given on an interest free breathing period until you have finished your studies???
Please advise, also best banks to go to either in the UK or Ireland.
Thanks
ATPLWhoops
If your able to receive the loan of £8,000 as the CDL. How are you to get the rest of the money from the bank??? One would assume that the remainder of the cash cannot be given on an interest free breathing period until you have finished your studies???
Please advise, also best banks to go to either in the UK or Ireland.
Thanks
ATPLWhoops
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Not sure I understand your question. 8k is the max you will get on a CDL. The rest would have to be on a personal loan or Pro Studies loan. My understanding is that unless you are on an integrated course with OAT or Cabair then you can forget the Prof Studies loan. OAT and Cabair have succesfuly managed to wangle that loan for their own exclusive use, stuff anyone else!
So, either rob, steal, prostitute yourself, plead with mum and dad, or SAVE!!
So, either rob, steal, prostitute yourself, plead with mum and dad, or SAVE!!
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You are not limited to borrowing money to do your training. Past 3 years I have been working and learning part time...get some savings together, along with a CDL and your laughing...
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hehehehe...
I do love these sites! I particularly like the FAQ's and 21 is a cracker!
21. The investor must have a lot of money available.
Answer. They do. Institutional investors have a problem keeping huge amounts of money invested. This program is one way of solving a problem for them with good purpose for you.
I wonder which large institution has problems with investing its money.....geez!!!
The only ones I know are mainly based in Columbia and Afghanistan.......and if you’re interested in this scheme then I'm sure they can also put you in touch with people who require low hour pilots who would like to get lots of experience in low level flying and don’t mind anti-social hours or remote grass/dirt strips!!
I do love these sites! I particularly like the FAQ's and 21 is a cracker!
21. The investor must have a lot of money available.
Answer. They do. Institutional investors have a problem keeping huge amounts of money invested. This program is one way of solving a problem for them with good purpose for you.
I wonder which large institution has problems with investing its money.....geez!!!
The only ones I know are mainly based in Columbia and Afghanistan.......and if you’re interested in this scheme then I'm sure they can also put you in touch with people who require low hour pilots who would like to get lots of experience in low level flying and don’t mind anti-social hours or remote grass/dirt strips!!
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Loans/Financial Support for flight training?
Hi all!
I am a UK citizen wishing to pursue a career as a helicopter pilot. I would like to live and work outside of the UK so JAA licencing is not a certain requirement for me, that said if it makes the dream possible I'd be happy to work in the UK too!
I am keen to do my training in either the US or Australia (respectable schools with better flying weather and exchange rate!) and would be very grateful if anyone could offer me advice on gaining financial support to cover/assist with my training costs. I am aware of career development loans in the UK and it would seem that the professional studies loans offered by Natwest and HSBC no longer cover aviation.
Any (legal) tips and advice you may have would be so very much appreciated,
Many Thanks to you all!
Matt Eke
I am a UK citizen wishing to pursue a career as a helicopter pilot. I would like to live and work outside of the UK so JAA licencing is not a certain requirement for me, that said if it makes the dream possible I'd be happy to work in the UK too!
I am keen to do my training in either the US or Australia (respectable schools with better flying weather and exchange rate!) and would be very grateful if anyone could offer me advice on gaining financial support to cover/assist with my training costs. I am aware of career development loans in the UK and it would seem that the professional studies loans offered by Natwest and HSBC no longer cover aviation.
Any (legal) tips and advice you may have would be so very much appreciated,
Many Thanks to you all!
Matt Eke
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You may get an answer here but also try posting the same question on the Rotorheads forum which is for helicopter pilots.
I know HSBC do cover aviation but I think it's probably just for integrated courses from zero to Frozen ATPL and quite possibly just fixed wing.
Good luck!
I know HSBC do cover aviation but I think it's probably just for integrated courses from zero to Frozen ATPL and quite possibly just fixed wing.
Good luck!