Hello all,
I'm excited to share that I was approved with Meritize to fund my flight school training for a $75,000 loan at 4.60%. I'm in a career track program to work as a professional airline pilot upon completion of the program, so I'm not terribly worried about paying it off, and I have sufficiently researched flight schools so I feel confident that this is a fair price. I opted for a local flight school with good reviews over the national flight school ATP which has a higher sticker price of $91,995 currently. Since I graduated with my BA already, going to a 4 year aviation university like Embry-Riddle doesn't make sense for me.
Unfortunately, most flight schools are not universities and not eligible for participation in the FAFSA program, but I am applying for a scholarship through the National Gay Pilot's Association to help ease the cost of this loan ($5000-$10,000). Hopefully I'll get it!
I am terribly excited to begin my career as a pilot, but I feel cautious of taking out a loan this size. The loan agreement I signed states that I don't have to make payments for the first 12 months (the maximum duration of my program) and discloses that about $2200 interest will accrue in that time and capitalize.
I do have $15,500 in federal loan debt from my undergraduate degree, which it is my understanding will all go into deferrment while I am a flight school student, but I still need to verify this as my loan servicer was not certain when I reached out to them. I only have subsidized loans, so no interest would accrue if I do get a deferrment.
I'm happy to hear any advice on repayment or answer any questions about flight school. Currently I'm planning for an aggressive repayment when I have a job as an airline pilot, and I'm considering refinancing at a lower rate around that time with one of my credit unions (DCU and AOD had the lowest rates I saw).
Yes I want to learn about flight school! I know nothing about it.
Is this considered a trade school or is it more of a gradulate/professional program?
I briefly looked up Meritize and it sounds like they are a private loan company, so I presume this is a private loan and not a federal unsubsidized loan?
Is your rate fixed or variable? Sounds like you would be able to pay it off pretty quickly either way, though a 4.6% fixed rate could be pretty competitive in a year or two.
Definitely confirm that you would be elible for deferment on your subsized loans. Don't want any surprises later.
Good luck future pilot 👍
@DakotaM wrote:Yes I want to learn about flight school! I know nothing about it.
Is this considered a trade school or is it more of a gradulate/professional program?
I briefly looked up Meritize and it sounds like they are a private loan company, so I presume this is a private loan and not a federal unsubsidized loan?
Is your rate fixed or variable? Sounds like you would be able to pay it off pretty quickly either way, though a 4.6% fixed rate could be pretty competitive in a year or two.
Definitely confirm that you would be elible for deferment on your subsized loans. Don't want any surprises later.
Good luck future pilot 👍
Flight Schools are more like trade schools or expensive recreational programs if you're not treating it as a career.
Meritize is a private student lender. No federal loans are available for flight school unless you go to an aviation University like Embry Riddle. I've also seen Sallie Mae as a popular lender and if you go through American Airline's program, Discover is their lender. AOPA (Aircraft Owners and Pilots Association) also has financing available for training, but I'm less familiar with that.
Thankfully 4.6% is a fixed rate! I was seeing rates with DCU as low as 2.5% variable and 3.0% fixed, but I'll happily take 4.6% for now as I was expecting something much more ridiculous like 7-11%.
I'll be checking with the flight school tomorrow about whether I'll be getting a deferrment!
Thanks!