Although it could be very exciting, learning how to fly an airplane is an expensive endeavor. A significant amount of it, on occasion. So, how much does it set you back to fulfill your dream of flying?
When beginning a career as a pilot with no prior experience, the cost is $91,995. However, the cost is reduced to $71,995 when beginning with a private pilot’s license. Both fees include all of the essential flight education and training to become a commercial pilot who also has flight instructor certification.
Several financing choices and loan options are available to assist student pilots in meeting the financial obligations associated with becoming commercial pilots.
11 Flight School Loans
If the pilot student needs to borrow money, the first consideration should be federal student loans. Since they offer the greatest amount of flexibility in terms of how the money is repaid.
Due to the fact that most flight schools do not qualify for government financial aid, you may want to prioritize private student loans, which usually have lower annual percentage rates (APRs) than personal loans.
To determine which loan offers the best rate of interest for your specific situation, you should compare a variety of loan options side-by-side.
Private Student Loans
When compared to personal loans, the range of annual percentage rates (APRs) that is advertised for respectable private student loans often has a lower floor and a lower maximum.
However, if you choose a longer loan term, you may pay more interest than if you borrowed a higher-rate personal loan with a shorter term and paid it back sooner. It is advisable to prequalify for several types of loans to compare the prices.
1. College Ave
They provide loans ranging from $1,000 up to one hundred percent of the cost of attendance at your institution. The annual percentage rate on these loans is fixed between 3.99 and 11.98 percent, and the payback terms are five, eight, ten, or fifteen years.
They provide loans ranging from $1,000 to $50,000 at an annual percentage rate that is fixed between 2.99 percent and 9.89 percent, with repayment terms of either five, ten, or fifteen years.
They give loans ranging from $1,000 up to one hundred percent of the cost of attendance at your institution, with a set annual percentage rate ranging from 3.75 percent to 13.72 percent, and repayment durations of either ten or fifteen years.
They offer loans ranging from $1,000 to $100,000 with an annual percentage rate that is fixed anywhere between 4.12% and 7.78% and repayment lengths of either ten or twenty years.
The annual percentage rate (APR) on a personal loan could be as low as one digit if you have outstanding credit or if you plan to apply for the loan with a cosigner who also has an outstanding credit score.
A personal loan will typically come with an interest rate in the double digits, and this rate may be far higher than the interest rate on a private student loan. This is especially true for applicants who have credit that is closer to being considered fair.
5. Best Egg
They provide loans ranging from $2,000 to $50,000 at a set annual percentage rate ranging from 5.99 percent to 35.99 percent, which can be repaid for either 36 or 60 months.
They provide loans ranging from $5,000 to $100,000 at a predetermined annual percentage rate ranging from 3.99 percent to 19.99 percent, with repayment terms of either 24 or 144 months.
7. Sofi Bank, N.A
They provide loans ranging from $5,000 to $100,000 at an annual percentage rate that is fixed anywhere from 6.99% to 22.23%, with repayment terms of either 24 or 84 months.
They provide loans ranging from $5,000 to $50,000 at an annual percentage rate that is fixed anywhere from 4.37 percent to 35.99 percent, with payment terms of either 36 or 60 months.
Other Loan Types
There are institutions and financial organizations that support flight school loans by name, as well as student loans and personal loans.
9. Aircraft Owners and Pilots Association
They are capable to provide loans of up to one hundred thousand dollars with an annual percentage rate that is fixed anywhere between 9.99 and 11.99 percent, and the length of time needed to return the loan is depending upon the amount borrowed.
10. American Airlines Federal Credit Union
They provide loans of up to $40,000 with an annual percentage rate that is fixed anywhere between 5.75 percent and 10.75 percent, and the repayment duration can be as long as 10 years.
11. We Florida Financial
They provide loans ranging from $5,000 to $30,000 with an undefined fixed annual percentage rate and repayment duration. The terms of the loan are based on the borrower’s credit line.
The Application Process for Flight School Loans
* First, you should check your credit score.
* After that, apply for pre-approval of your loan.
* Once pre-approved, start comparing lenders by their APRs, repayment terms, loan amounts, fees, and your protection once you are approved for a loan.
* Before applying for a loan, make sure that all your documents are ready and complete. It will also help to make the process go smoothly.
* When everything is done, you can now start applying for your type of loan.
If you are dedicated and willing to make sacrifices, pursuing your dream of flying can be accomplished even with a limited budget, but it will be well worth it in the long run.
If you are eligible for a loan, all you have to do is select the one that best meets your needs. Make sure you are well-informed on both your lender and your loan.
While there are plenty of options for financing your flight training, not all will be the right fit for you. Be sure to do your research, compare your various options, and you’re bound to find the best possible flight school loan to help meet the costs of your training and certificate.