After reading other posts I can see that the tuition reimbursement goes directly to the lender. My question is can you lower your payment to reflect that. For example, if you’re payment is $1000/month and you are getting reimbursement for $500, can you just pay $500 per month while the reimbursement is coming in?
Cody,
Technically you can pay whatever you want, but yes. If you are simply trying to pay the minimum amount per month, your example would work. Keep in mind though, starting day one the loan starts incurring interest.
Tory
Cody,
The Tuition Re can go to the lender or it can go to you to distribute as you see fit.
Adam
Correct me if I’m wrong Adam, direct to lender would be tax free. Paid to me would incur income tax correct?
I heard the tuition reimbursement goes against your signing bonus. Is that true?
Yeah that’s right. I just know times are gonna be tough those first few years and anything that can decrease the monthly burden in those low income years helps tremendously.
Cody,
If you’re receiving money yes the IRS is going to want their cut. As for the signing bonus question it varies from Regional to Regional. Some are offering it in addition to a signing bonus, some in lieu of, and it can, may and will change. Best bet is to see what’s available WHEN you’re ready.
Adam
Thanks, Adam. Is the pilotjobs tab through the website consistently updated? Is that our best source to check current packages when the time comes?
That and the individual airline websites.
Adam
Cody,
That is exactly how tuition reimbursement works, your payment will be reduced by the amount paid to your lender via tuition reimbursement.
As an aside, the tuition reimbursement money is generally considered to be tax free to you as it it paid straight to the lender. As always, check with your tax professional on this.
Chris
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