This was the second time I applied (this time with a co signer). I’m 25 years old and I have a credit score of 792 and a decent income and it’s racking my brain that this is the interest rate they came back to me with. It seems impossible for me to make this payment even when at a regional. I have read so many post about refinancing after training but does this affect your deferment period? Also I’m a little fuzzy on that as well. From what I have heard from ATP financing department it is a 6 month grace period and then reapply for another 12 months of just interest only, but even paying interest only it is still $1657 a month. How does anyone make this work on instructor pay? I know center park also offers financing at a lower rate but the deferment period at Sallie Mae makes way more sense. I was really excited to start my journey at ATP but is it worth ruining my life financially. All answers and suggestions appreciated. Thanks so much.
These are questions for the finance dept but you need to understand a) interest rates are high across the board and b) these are unsecured loans which always come with higher rates than secured loans.
No one can tell you what you should or should not do. It’s your life and these are grown up decisions.
What I can tell you is over the last 12mos over 1,100 ATP grads were hired by the airlines and of those 1,100, very few were independently wealthy. Most of us were like you chasing our dream but looking at the potential for a WHOLE LOT of debt! It’s scary! What I also can tell you is we all figured it out. Maybe we refinanced, kept deferring until we could handle the payment, received Tuition Reimbursement, etc etc etc. Not trying to be corny or give you some cliché but where there’s a will, more times than not there’s a way.
That said YOU’RE the one on the hook and you need to feel good about this investment. If it’s hanging over your head like a guillotine it’s a problem.
We’re talking about a time where interest rates are at their highest point… not to sound rude, do you expect less? Prime market on the housing side is above 8.0% alone. Credit lenders are willing to lend you over a $100,000 to pursue your dream, they want to ensure repayment and financial returns on your ROI. The good news is, first year first officers are banking nearly $100,000 gross to start, around a tax bracket 22 or 23% depending on your other living conditions. Any further financial questions should be directed to a financial expert, i.e., financial advisor or ATP’s Finance Department, who is more than ready to assist with any financial question you may have.
When I started ATP in 2020, I took at 12.375% interest rate, I sucked it up, I had to. Since then, I refinanced twice, decreased it the first time in the 8’s, now sitting pretty at a 6.0% and eyeing to keep my total finance charges under 50% of what the initial cost of loan agreement said. I took the $25/month payment while studying/instructing with the grace period, to keep my costs lower in the beginning so I could focus on flying then the loan. As Adam said best, you’re the only one that can determine if accepting this loan agreement is worth it. I’d like to ask, what makes you interested in becoming an airline pilot, and do you have any flight experience? If you had flight experience, I don’t think you’d second guess this at all, I could be mistaken?
