Student pilot loans

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Fellow pilots,

A few month back I graduated from Embry-Riddle and just recently got my first pilot job. As much as I'm glade to have the unique opportunity to get paid for my hobby, financially things are becoming difficult. I will soon need to start paying off all the loans I took out for my training which with my low salary isn't going to be easy. I am hoping that there is someone here who experience a similar situation and could potentially give me an advice to help solve my problem.

Right now I'm searching for banks that could refinance my loans this way I could be paying back one single loan, hopefully with a lower APR. Would anyone be able to recommend a good bank for this purpose?
I have also heard that there are government programs that let you pay a certain percentage of your salary but I have not been able to find anything concrete. Does anyone know any more about this?


Thanks in advance

Rob
 
Sell your sperm and whore yourself out. Good luck, we're all counting on you.
 
Man, I feel for you. This should be a sticky. Unfortunately, we all see the variations on this post over and over, on every aviation forum, going back for years. Like this one:

Embry Riddle: to go or not to go

Good for you so far ... you got hired in aviation with a ERAU degree. Hope you can pay it off.

How much are you in for?
 
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I coulda given you some GREAT advice about 4 years ago. Dont buy stuff, including (or maybe especially) an education that you cant afford. If you have to take out loans for it, you cant afford it.

Time to get a second or a better paying job and dig yourself out of the hole you put yourself in.

Going forward, dont make the hole any bigger by buying things on credit.
 
Welcome to the suck. Life may be crap for awhile. Expect to get a second job. Eventually things will work themselves out. We've all been there in some shape or another. I'm still paying back my student loans, but after many years, I've got everything under control for a change.
 
BGF_Yankee said:
Welcome to the suck. Life may be crap for awhile. Expect to get a second job. Eventually things will work themselves out. We've all been there in some shape or another. I'm still paying back my student loans, but after many years, I've got everything under control for a change.
Click to expand...

^^^All true. It will work itself out. Get employed, work out of the hole...MOST of us have been there in some form...its life. Enjoy flying.
 
OK, as for real advice...

A loan CONsolodation is just that, a con. It 'cons' you into thinking youve actually DONE something, which you really havnt.

I dont know the particulars but I assume you have several loans with different balances and different minimum payments. List all your loans smallest to largest. Make the minimum payment on all but the smallest loan. Make as LARGE a payment as possible on THAT loan until it is gone. Continue down the list until theyre all gone. That list should include ALL your loans, not just student loans.

To facilitate the above, live cheap, eat cheap, drive cheap. Get side jobs and put that money on the loans. You dont go out, you dont drink with the boys, you dont buy a new car.

There is no short cut or government bailout. There is hard work and sacrifice. As for the above sentiment that it will 'work itself out'. No it wont. YOU will work it out or it wont go away.

Good luck
 
Take a look at joining givling.com as well.

Long story short, a bunch of people with student loans play games at around .50 cents a pop in return for the chance of small cash winnings every day.

Profits go to a pot, and when you're #3 or #4 in line, those profits start paying your monthly payments. When you're #1, the gigantic bulk amount pays it off.

So far its been pretty successful, First guy just had $30k paid off, so #2 is up and a handful below are getting monthly payments
 
gitmo234 said:
Take a look at joining givling.com as well.

Long story short, a bunch of people with student loans play games at around .50 cents a pop in return for the chance of small cash winnings every day.

Profits go to a pot, and when you're #3 or #4 in line, those profits start paying your monthly payments. When you're #1, the gigantic bulk amount pays it off.

So far its been pretty successful, First guy just had $30k paid off, so #2 is up and a handful below are getting monthly payments
Click to expand...

So, how is this not both an illegal lottery AND a pyramid scheme?

I think going to a payday lender may be only slightly worse advice. Spend your time playing games? That's your advice? Really?
 
JCranford said:
OK, as for real advice...

A loan CONsolodation is just that, a con. It 'cons' you into thinking youve actually DONE something, which you really havnt.

I dont know the particulars but I assume you have several loans with different balances and different minimum payments. List all your loans smallest to largest. Make the minimum payment on all but the smallest loan. Make as LARGE a payment as possible on THAT loan until it is gone. Continue down the list until theyre all gone. That list should include ALL your loans, not just student loans.

To facilitate the above, live cheap, eat cheap, drive cheap. Get side jobs and put that money on the loans. You dont go out, you dont drink with the boys, you dont buy a new car.

There is no short cut or government bailout. There is hard work and sacrifice. As for the above sentiment that it will 'work itself out'. No it wont. YOU will work it out or it wont go away.

Good luck
Click to expand...

Dave Ramsey Disciple? :)

All good advice.
 
JCranford said:
I dont know the particulars but I assume you have several loans with different balances and different minimum payments. List all your loans smallest to largest. Make the minimum payment on all but the smallest loan. Make as LARGE a payment as possible on THAT loan until it is gone. Continue down the list until theyre all gone. That list should include ALL your loans, not just student loans.
Click to expand...

What does the size of the loan have to do with anything? He should pay the most on the one with the highest interest rate.
 
MAKG1 said:
So, how is this not both an illegal lottery AND a pyramid scheme?

I think going to a payday lender may be only slightly worse advice. Spend your time playing games? That's your advice? Really?
Click to expand...

Have you checked it out at all? Maybe read the wall street journal articles or saw where if you don't want to pay you just join the line for payment?

While we're at it, here's a link from business today regarding it. Do your own research.

http://www.businesstoday.org/articles/2015/04/givling-a-new-way-to-pay-off-student-loans/
 
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dmspilot said:
What does the size of the loan have to do with anything? He should pay the most on the one with the highest interest rate.
Click to expand...

Mathmatically that might be correct. However if he was good at math he wouldnt be in the situation he is in. Smallest to largest get him rolling and emotionally invested. Once he has some momentum the interest rates dont matter so much any more.
 
MAKG1 said:
So, how is this not both an illegal lottery AND a pyramid scheme?

I think going to a payday lender may be only slightly worse advice. Spend your time playing games? That's your advice? Really?
Click to expand...

:yeahthat:

I've got to agree with you. To council someone in a financial tight spot like that may have been the worst advice I've ever seen on this board.

Let me second your "Really???"

(Oh, and by the way, that scheme is not legal in many states as well)

Maybe we can suggest that everyone with student loan debt play the scratch-off lottery every day as well. Someone wins there regularly too, right?





Really???
 
gitmo234 said:
Have you checked it out at all? Maybe read the wall street journal articles or saw where if you don't want to pay you just join the line for payment?

While we're at it, here's a link from business today regarding it. Do your own research.

http://www.businesstoday.org/articles/2015/04/givling-a-new-way-to-pay-off-student-loans/
Click to expand...

Sure. Right from your own article:

... the app has also faced some severe criticism. In an interview in Wired, Allan Collinge, an activist involved with tackling student loan legislation, said of Givling “Stepping back and taking a larger view, it does nothing to address the problem of student loan debt generally, and deal with the predatory dynamics that have wreaked havoc on people.” Moreover, the game has the potential to cause more harm than good since each round costs 50 cents. This could undoubtedly add up over time, as there is no guarantee of wining a prize after investing money in the game.
Click to expand...

This is a lottery. It rewards a statistically tiny number of participants at the expense of the vast number.

It is not a financial strategy.
 
gitmo234 said:
Have you checked it out at all? Maybe read the wall street journal articles or saw where if you don't want to pay you just join the line for payment?

While we're at it, here's a link from business today regarding it. Do your own research.

http://www.businesstoday.org/articles/2015/04/givling-a-new-way-to-pay-off-student-loans/
Click to expand...

Yup, I did look at that website.

And that's the source of my comment.

It's virtually identical to the mail pyramid schemes we used to get 30 years ago, except instead of a gift, it has a game of chance. Which makes it a lottery….

Think of it this way. Some guy supposedly got a payout of $30K. Assuming that's not just made up, where did the money come from? If it depends on new suckers to fund old ones, it's not just a pyramid scheme, it's THE pyramid scheme.

PT Barnum was correct.
 
For a lot of kids it's a huge step down on their standard of living when going from college to their first job. My advice: pay the loans and get used to living like a poor person for a few years. It's really not the end of the world.
 
Alright, so I guess by signing up and waiting I've been scammed although I've paid nothing. Crowdsourcing must be way too modern. And illegal in many states applies to 6.

I never said it should be his entire strategy, but since the requirement is essentially nothing, even if it was some dubious scam he'd be out nothing, but could potentially have some benefit. If you'll look above I made strategy suggestions.
 
JCranford said:
Mathmatically that might be correct. However if he was good at math he wouldnt be in the situation he is in. Smallest to largest get him rolling and emotionally invested. Once he has some momentum the interest rates dont matter so much any more.
Click to expand...

You don't have to be good at math, the interest rate should be on the statements.

Paying a 1% loan before a 10% loan just because the balance is smaller -- is that trying to solve stupidity with more stupidity? Oh but it makes him emotionally invested, whatever that means. :confused:
 
My advice is work your butt off while your young. Yeah there is only see so much you can fly but maybe get your ground instructor certificate (cost of a gleim book but presumably your an atp and even the igi exam would be easy) then maybe tutor kids who want to do what you want. Or stock shelves somewhere. Along the lines of dave Ramsey next time your inside a restaurant you should be an employee. Don't let this debt cripple you. Don't be in your 60s still trying to pay it off. Yeah dave Ramseys books are in most libraries.

Good luck!
 
dmspilot said:
You don't have to be good at math, the interest rate should be on the statements.

Paying a 1% loan before a 10% loan just because the balance is smaller -- is that trying to solve stupidity with more stupidity? Oh but it makes him emotionally invested, whatever that means. :confused:
Click to expand...

Dave Ramsey has a long history of offering dubious advice.
 
So what feels better? Having 10 loans to pay off or having 2? Yeah it IS emotional. It isn't stupid to pay off debt regardless of how you do it. Don't knock it. It DOES work if you let it.
 
JCranford said:
OK, as for real advice...

A loan CONsolodation is just that, a con. It 'cons' you into thinking youve actually DONE something, which you really havnt.

I dont know the particulars but I assume you have several loans with different balances and different minimum payments. List all your loans smallest to largest. Make the minimum payment on all but the smallest loan. Make as LARGE a payment as possible on THAT loan until it is gone. Continue down the list until theyre all gone. That list should include ALL your loans, not just student loans.

To facilitate the above, live cheap, eat cheap, drive cheap. Get side jobs and put that money on the loans. You dont go out, you dont drink with the boys, you dont buy a new car.

There is no short cut or government bailout. There is hard work and sacrifice. As for the above sentiment that it will 'work itself out'. No it wont. YOU will work it out or it wont go away.

Good luck
Click to expand...

Somehow, this makes me think you know a guy from Tennessee named Dave.
 
dmspilot said:
You don't have to be good at math, the interest rate should be on the statements.

Paying a 1% loan before a 10% loan just because the balance is smaller -- is that trying to solve stupidity with more stupidity? Oh but it makes him emotionally invested, whatever that means. :confused:
Click to expand...

Least amount first is always the better way, especially if there are multiple debts.

This isn't about math, it's about generating hope.

Being able to knock out some small items very quickly proves to yourself that you can do it and can continue to build momentum. The snowball keeps growing and gathering speed, and the OP can quickly see that the light at the end of the tunnel isn't as far away as it was when he started.

The momentum quickly builds with the additional payment cash so that when you're knocking on a high interest debt, you're killing it much quicker than if you had started with it.

I'm not going to debate mathematics. I'll let you do that with Dave himself. If you do call in to the show, let us know when so we all can listen.
 
JoseCuervo said:
Dave Ramsey has a long history of offering dubious advice.
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Greg Bockelman said:
Such as?
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I always encourage folks to read the entire book, The Total Money Makeover, and gain a complete understanding of the concepts being taught.

Then, even if you disagree with 18.2% of the subject matter, then other 81.8% will help you tremendously.
 
AggieMike88 said:
I always encourage folks to read the entire book, The Total Money Makeover, and gain a complete understanding of the concepts being taught.

Then, even if you disagree with 18.2% of the subject matter, then other 81.8% will help you tremendously.
Click to expand...

I have read them all. Well, he has a newer one out that I haven't read, but other than that. . .
 
Greg Bockelman said:
So what feels better? Having 10 loans to pay off or having 2? Yeah it IS emotional. It isn't stupid to pay off debt regardless of how you do it. Don't knock it. It DOES work if you let it.
Click to expand...

It would feel better to spend less money on interest and get out of debt quicker than to spend more money on interest and get out of debt more slowly.
 
I'm a pay the highest interest rate off sooner guy. Then again, I have an unemotional approach to money. Of course I've only ever paid 50 cents in interest on unsecured debt in my life - and that was due to forgetting I put 3.00 in gas on my charge card 20 years ago. (the only charge that month)

My plan is to never pay anyone a penny of interest again.
 
dmspilot said:
It would feel better to spend less money on interest and get out of debt quicker than to spend more money on interest and get out of debt more slowly.
Click to expand...

But if the problem is not having the coin to make the minimum payments, then paying off the smallest ones first will help lower the total month outgo. It also will increase the total amount ultimately paid as compared to paying the higher-interest ones first, so it depends on OP's situation.

My advice would be to find a credit union that OP is eligible to join (ERAU probably has one), lay out all the statements on a loan officer's desk, and see what they can do to lower the payments. If they can reduce the monthly load, that would give OP some breathing room for the time being, assuming that making the payments is the issue.

Rich
 
JoseCuervo said:
Dave Ramsey has a long history of offering dubious advice.
Click to expand...

He will tell you it's not the cheapest way to get out of debt interest wise. He is going for behavior momentum with the snowball


I do take issue with his 12% return he claims on mutual funds. I haven't seen that yet.
 
Flight training loans, per the AOPA website, are offered by a credit union called USAlliance. As you are not in flight training any longer, you could get a signature loan or a personal loan perhaps -- don't know if the rate would be higher than if you were getting an actual "flight training loan." My suggestion is to call them and see what they can work out with you. (It only "costs" $5 or $10 to open a checking account at the credit union, and you can, because you're a member of AOPA, right?)

Also, why didn't you get gov't loans c/o ERAU? Not available? Can't you talk to the financial aid people at ER and have them give you some ideas?:dunno:
 
gitmo234 said:
Take a look at joining givling.com as well.

Long story short, a bunch of people with student loans play games at around .50 cents a pop in return for the chance of small cash winnings every day.

Profits go to a pot, and when you're #3 or #4 in line, those profits start paying your monthly payments. When you're #1, the gigantic bulk amount pays it off.

So far its been pretty successful, First guy just had $30k paid off, so #2 is up and a handful below are getting monthly payments
Click to expand...

Ponzi loan repayment scam?
 
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