Hello Guys,
I am in the middle of applying for a loan via Sallie Mae, and the 2 co-signers I had backed out after re-evaluated the high cost of the program( It is hard to be on the leash for 100k). I was wondering how I can justify the cost of the program to other family members or other people whom I can ask to be co-signers of my loan.
Thanks again,
Luigi
Luigi,
This is an investment in your future. I would start with that. I’d talk about the earning potential ($350k+), the pilot shortage and very favorable state of the industry. I’d also tell you’ll make them your travel companion and they’ll fly free all over the world (which I think is fair for them investing in you).
These are all common talking points but ultimately it’s up to you to convey to them on a personal level why this is important to you and why YOU believe they should invest in you.
Adam
Luigi,
You can talk to your family until you’re blue in the face, but I would bet most people won’t see it from your perspective. If they want to help they will. If they don’t, you should respect their decision. $100k is a lot of money and they are trusting that you actually complete the program, don’t fail too many check rides, get hired at a regional, upgrade…I’m not saying don’t revisit this conversation with your family. I just don’t think that simply presenting a more persuasive case will change minds. If anything it could make you look more desperate. Like I said before, if someone wants to help it usually doesn’t take that much convincing. I am beyond grateful that I had someone to help me finance my training, but I also had to put some skin in the game. I took out the loan in my name and they helped me refinance after I had proven myself. So, I guess maybe that could be an appropriate proposal? If you can get approved for half of the loan, maybe they’ll feel more comfortable covering the other half? I don’t know. You should be asking them why they backed out. Maybe they’ll be willing to tell you what it would take for them to reconsider? I would start there, but again, if they’ve already backed out without even having the “what would it take” conversation, it may not even be about that.
Tory
There is a Cosigner Prospectus page on ATP’s website that may help. https://atpflightschool.com/financing/cosigner-prospectus.html One of the big points is that after 12 months of on-time payments most lenders will allow you to release the cosigner from the loan.
Hello again Tory and Adam,
Thanks for the reply. Yes when I had the initial conversation I explained all the benefits as well as they options to be a co-signer (example: having the options to be release after 12 months of my consecutive payments). I agreed myself if someone backs out I personally will not push since it will look bad on me or even ruin the relationship. I guess my other option is to keep pitching it to other family members while in the mean time working in my credit until I am good enough to take a loan on my own.
Luigi,
Luigi,
It sounds like you are going to have to wait, build credit and save money on your own. It stinks, but I can understand people’s reasons for not wanting to co-sign.
Chris
Luigi,
Not a licensed credit specialist, but working in the financial/banking industry for a few years, I’ve always offered the advice of getting a basic (no annual fee) credit card even such as Capital One Platinum which doesn’t have annual fees but can start helping your credit. Credit companies such private lenders look for good history and the length of that history; hence, why someone that is in their 60s may get approved quicker than a 20 year old for even an unsecured loan of a greater amount. The biggest trick to credit score is keeping within no more than 20-30% of the card’s available limits (i.e. $100 credit limit, stay under $30). Buy a stick of gum once a month, pay it off…it will help. All credit companies want to see is that you are making payments on time and have activity.
Hope this helps some, if you have some more questions, stop into your local bank/financial adviser for tips on how to build a good credit, I wish I could tag a link for some videos from my banks website, but I don’t know if that is allowed.
Brady