Loan Question

Airline Pilot Questions & Answers
1

So I know this isn’t ATP admission lol but heres a simple question that @Adam @Chris have maybe went through.

When the loan for the schooling is taken out, do you start paying it back then or after the schooling has finished? Just curious because I obviously wouldnt have too much money at that point in time, any information would be handy. Thank you all in advance.

2

Dakota,

It all depends on your particular loan, but generally there are 6-24 month deferment options. Also, don’t forget that Tuition Reimbursement can really help out a lot (up to $500 per month) with your loan payments.

Chris

1 Like
3

Dakota,

I believe payments are deferred for 9 months, allowing students to finish
the program before minimum payments begin. However, interest charges are
made starting day one.

Tory

4

Something to keep in mind though about deferment. Interest is still building during the time you have deferred payments. That WILL add a huge number on to the loan. Since interest starts building the second you take any money, Tory said it up there. If you are able to at all, I would avoid deferring because you will be paying a lot of extra cash since interest would have been piling up over that amount of time.

5

Chris,

While that’s absolutely true, I’m not sure I’d call the added amount “huge” and more important sometimes you have to do what you have to do. In reality you could argue that it be best not to take a loan out at all, save up the money and save ALL the interest but that’s not feasible for most. I had to defer for a little while. Didn’t want to, but had to. Sure it added some money but it was a necessity at the time. After all said and done the amount was negligible compared to the relief. Just saying.

Adam

Adam

6

I deferred for six months. While It wasn’t my favorite financial move of all time, it was what I needed to do at the time. I still managed to pay my loan off several years early.

Chris

7

No, I get it’s necessary most of the time. Just wanted to make the point because inevitably someone looks at their statement and has a bit of sticker shock.