Raising Funds for Training - Credit Crunch
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Raising Funds for Training - Credit Crunch
How is the credit crunch affecting your ability to raise funds for training? Are the HSBC still giving out £30K unsecured professional study loans? Are CTC cadets still able to borrow £70K unsecured? What is your experience? If you have been able to get loans recently, who was it from?
Join Date: May 2001
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I suspect and it is a huge suspect that the companys that have links through and are holding some of the risk.
ie if you go to www's welsh boys flying school intergrated it will cost on paper 95k which you take the loan out on. The coarse only costs 45k. But not many folk can pay 95k up front. So if the school takes on some of the risk of the loan the banks think there is a risk which is profitable. The company gets punters and the numbers which turn out to be bad is relatively small everyone still makes a profit.
Which is why the more intergrated peeps go bankrupt the better because these deals will make the banks back out and the over priced product will be priced out the market.
We are due a down turn now and i suspect in the next 24 months there are going to be some wannabies loosing a heap of dosh due companies going tits up.
ie if you go to www's welsh boys flying school intergrated it will cost on paper 95k which you take the loan out on. The coarse only costs 45k. But not many folk can pay 95k up front. So if the school takes on some of the risk of the loan the banks think there is a risk which is profitable. The company gets punters and the numbers which turn out to be bad is relatively small everyone still makes a profit.
Which is why the more intergrated peeps go bankrupt the better because these deals will make the banks back out and the over priced product will be priced out the market.
We are due a down turn now and i suspect in the next 24 months there are going to be some wannabies loosing a heap of dosh due companies going tits up.
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Yes this is the main reason that i have had to put my training on hold....im 21 and i live at home therefore i have no property to secure a loan on.
This is music to my ears
I must give them a phone on tuesday.
This is music to my ears
I must give them a phone on tuesday.
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The HSBC agreement is unique to CTC Wings cadets, partially due to an agreement with CTC, and partially due to the very low risk associated with their employment record.
Shauna, I also didn't have property to secure a loan on. So I got a degree and started to work as an engineer, did the sums and realised that it would take 5 years before I even had the cash to start, modular wasn't available in Switzerland and the PPL wasn't available in English...
Shauna, I also didn't have property to secure a loan on. So I got a degree and started to work as an engineer, did the sums and realised that it would take 5 years before I even had the cash to start, modular wasn't available in Switzerland and the PPL wasn't available in English...
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just imagine !!
just imagine what the monthly repayments are on a massive £75k loan with today's interest rates!
Think HSBC pro study loans are 2% above base rate.
my guessing is it would be about £850 per month ?!?!
Think HSBC pro study loans are 2% above base rate.
my guessing is it would be about £850 per month ?!?!
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Credit crissis........ I don,t think so!
For the past few years the big training companys have convinced the airlines that "integrated" pilots are the "quality" product and have more or less forced all the wanabes into courses that cost £20,000 more than the same training on a modular course.
Ask your selfs what is the added value that the integrated course gives you over the modular course, the answer is that you are paying a years take home pay for a bit of help getting a job.
Not being able to get yourself into a vast debt cant be bad and the up side is the extra flying you do to get the hours via the modular route will make you a better pilot.
The only people this credit crissis will hurt will be the leaches who are charging £20,000 for bit of careers advice!
The message is clear.......... go modular and save a fortune!
Ask your selfs what is the added value that the integrated course gives you over the modular course, the answer is that you are paying a years take home pay for a bit of help getting a job.
Not being able to get yourself into a vast debt cant be bad and the up side is the extra flying you do to get the hours via the modular route will make you a better pilot.
The only people this credit crissis will hurt will be the leaches who are charging £20,000 for bit of careers advice!
The message is clear.......... go modular and save a fortune!
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If you have the money to hand then Integrated has to be the way forward, everyone on here dribbles on about chasing the dream, well in my dreams the £ sign rarely pops up. As I have said before, if money wasn't a factor then most people would go Integrated simply because the course is structured, well planned and geared soley at getting you in the RHS of a big Jet, which correct me if i'm wrong, is the dream??
Modular is for those of us that want to cut costs, carry on working and do the training at our own pace. Both systems have ups and downs, advantages and disadvantages, the key is which suits you and your situation best.
Anyway, back to the original thread. Raising money for training....I see this asked so often, what are people looking for here? There are no money trees, golden egg laying geese etc... All you have is your own desire and (hopefully) commitment to the cause. If money is an issue then study like mad and get a sponsored place on an integrated course. Alternatively work/save like mad and pay your own way. The final option would be to get the old folks to stump up the cash but i know if my little lass asked, i'd want her to at least attempt one of the above to show her desire isn't just a passing phase.
Paz (modular)
Modular is for those of us that want to cut costs, carry on working and do the training at our own pace. Both systems have ups and downs, advantages and disadvantages, the key is which suits you and your situation best.
Anyway, back to the original thread. Raising money for training....I see this asked so often, what are people looking for here? There are no money trees, golden egg laying geese etc... All you have is your own desire and (hopefully) commitment to the cause. If money is an issue then study like mad and get a sponsored place on an integrated course. Alternatively work/save like mad and pay your own way. The final option would be to get the old folks to stump up the cash but i know if my little lass asked, i'd want her to at least attempt one of the above to show her desire isn't just a passing phase.
Paz (modular)
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Have to agree with Paz on this. If you have the money then clearly Intergrated is the way to go. If you don't, then modular and be glad that you have the option.
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I was going to get a £74,000 loan from HSBC (Secured). The interest alone added £45k over the repayment period. I told them thanks but no thanks and have found an alternative and much more attractive solution
JB
JB
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Ok, this has probably been asked before, although after a search I cannot find the answers I am looking for, I apologise if they seem rather ambiguous in nature. These questions are aimed at people who have done any integrated course, not CTC and OAT specifically, although it would help.
So, your accepted onto an integrated course, OAA, CTC etc. In attempting to secure the funds, you are about to ask someone to put their house up for security, the questions I have are:
So, your accepted onto an integrated course, OAA, CTC etc. In attempting to secure the funds, you are about to ask someone to put their house up for security, the questions I have are:
- Is this a re-mortgage, or is it as I have been lead to believe a loan: 18 months training and 6 month repayment break, whilst the interest is accruing?
- If I was to take the full loan £66k OAA, £60 CTC, what are the usual repayments, which you have had to meet per month?
- What is the difference between the loan OAA offer and CTC’s bond scheme?
- Presuming a job is acquired, after monthly pay minus tax, how is the financial situation, poor but repayments met, or are we living off tins of beans, and struggling to meet the repayments?
- What is the realistic prospect of paying off this loan in the time frame that these schools set out 5-6 years?
Last edited by docash1983; 4th Apr 2008 at 23:33. Reason: typo
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Further from that question by docash1983, are there any FTOs that can ensure you get an loan for the amount (eg £60k) unsecured?
I though someone mentioned Oxford help you obtain a loan but I don't have property to secure it on!
I though someone mentioned Oxford help you obtain a loan but I don't have property to secure it on!
Its Soooooo Over. Mortgage Equity Release and unsecured loans of 5 figures are gone. Watch for price reductions at the Integrated schools in the next 6 months.
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If you have the money then clearly Intergrated is the way to go.
Consider Modular, a chunk at time...reassessing the market place...Q4 of 2008 could still have alot of experienced pilots looking for work...
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If you have the money then clearly Intergrated is the way to go.
But I guess it is all about "following dreams, no guts no glory, flying into sunsets" and all these things.