Flight Training Financing Shouldn't Ground Your Desire to Fly
The International Air Transport Association (IATA) forecasts a doubling of air passengers to 8.2 billion in 2037, which could support 100 million jobs all over the globe, including aviation careers. But just because you want to become a pilot in a high-demand environment, it doesn't mean the training is free. Training as a pilot can be expensive. It could cost around $70,000 for a year, which is higher than the average yearly tuition of $33,480 at a four-year college. You may not be ready to pay for this cost out of the pocket but, don't worry, you have flight training financing options to make your flying career possible.
Read on to see the financial help available to you.
Federal Student Loans
Federal financial assistance programs are only available to students studying at an accredited flight school. It's best to contact your school’s admissions office to know if they are accredited.
If they are, then you could receive these three types of federal student loans for your flight training financing needs:
Direct Subsidized Loan – This loan is available if you meet the required level of financial need. The government pays the interest while you're enrolled in school, during deferment, and for the first six months after you leave.
Direct Unsubsidized Loan – Here, you're not required to demonstrate financial need. However, you'll be responsible for paying all interest (it accrues while you're in school).
Note: The cost of attendance, less any other financial aid you have already received determines the loan amounts you receive for both direct subsidized and unsubsidized loans.
Direct PLUS Loan for Parents – It's a loan available to your parent or guardian to help pay for your aviation training. Eligibility is determined by credit history. Also, the parents can only borrow the total cost of tuition minus any financial aid.
You'll also need to fill out and submit the Free Application for Federal Student Aid (FAFSA) to know the financial aid for which you are eligible.
The Federal Pell Grant
Besides government-funded loans, filling the FAFSA can lead to a possibility of receiving the Federal Pell Grant. Since this is not a student loan, you don't have to repay it.
Students attending a pilot training program at an accredited flight school may be eligible. But you need to demonstrate financial need to be awarded the Pell grant. The maximum amount awarded was $6,195 for the year 2019-2020.
Private Student Loans
Most flight training programs don't qualify for federal loans. Even if you can get them, they may not cater to your full attendance. You might have to consider loans from private lenders for flight training financing.
Although most of the private lending organizations in the United States offer some student loan programs, they're not always available for trade schools or career training. Thus, it's essential to look for lending companies offering specific loans for flight training such as:
Sallie Mae – It's one of the private lenders in the U.S. Under the Career Training Smart Option Student Loan, they provide affordable loans to students enrolled in trade and technical schools as well as vocational colleges. As a student enrolled in a pilot training program at a licensed flight school in the U.S., you're eligible for this loan. The amount depends on your total tuition cost, and the loan is approved according to the credit history.
Wells Fargo – They offer a wide variety of student loans, including the Wells Fargo Student Loan for Career and Community College for flight students. With this loan, you can choose from a variable or fixed interest rate, and it allows you to defer payments six months after graduation.
Other Types of Flight Training Financing
Besides federal and private loans, here are other types of financial aid to consider:
Assistance from Your Flight School – As part of their program, most flight schools have flight training financing options to help you pay for your training.
Funding Specifically for Pilot Training – There is specific funding for flight students such as AOPA Aviation Finance, American Airlines Federal Credit Union, and WE Florida Financial.
Scholarships – You can check FlightScholarship.info, AOPA's recommendations, and the National Air Transportation Association to find funding for your aviation career. It's also essential to seek out non-aviation scholarships.
Airline Training Programs – If you're interested in working in a specific airline, you could check the available training programs. Some airlines have training programs where you could receive funding and a guaranteed job after completion.
Points to Ponder
Private loans play a crucial role in helping students with their flight training financing, and eventually, learners achieve their career ambitions. Regardless of the purpose, you should seek a loan with caution.
When considering a private student loan, keep the following tips in mind:
It's best to exhaust all federal loan options (they have flexible repayment plans and forgiveness plans) before taking out a private loan
Be sure to shop around to find the best loan (lowest interest rates, favorable eligibility requirements, and repayment terms)
Read the loan paperwork carefully and fully understand the terms before entering binding contracts
Understand your rights and responsibilities as a borrower and those of the lender
Don't borrow more than you need to cover your cost of tuition
Ask for clarification on any unclear information before signing the agreements
Have a good credit rating since your eligibility for a private student loan depends on it. A low credit score could lead to higher interest rates
Have a clear plan on how to repay the loan
When possible, start making payments on your loan while still in the training program
If you are close to defaulting on your student loan, contact the lender immediately. Often, they may restructure your loan into manageable terms of repaying your loan.
Thinking about Learning to Fly?
There are hundreds of great reasons to embark on flight training. With a private pilot license, you'll get to see the world while piloting your family and friends to vacation destinations. Your loved ones don't have to wait in the airport lines to take trips to the beach or ski slopes.
Also, your decision to enroll in a flight training program will prepare you for an exciting and rewarding career. And, with the expected increase in job opportunities, you can fly for companies, airlines, corporate flight departments, and even government entities. As a licensed commercial pilot, working for major airlines can easily earn you more than six-figures a year as well as impressive benefits.
Financing Your Flight Training is Possible!
Don't let the price tag of training deter you from realizing your dreams of taking to the skies. There are plenty of flight training financing options available to aspiring aviation professionals. Look into all the options to see which ones work for your budget. Sunair Aviation has built a solid reputation of graduating highly trained pilots ready to transition to the aviation workforce. We work closely with you to help you secure the financial aid you need to complete your pilot training program. Additionally, we provide details on loan programs available to you, and we have developed close working relations with lenders to make the loans more accessible to you. Contact us for information when you are ready.