According to L3Harris, a global leader in airline pilot training, getting a commercial pilot’s license could cost more than $83,995 per year, while a private pilot’s license could cost around $11,500. Although these figures of the cost of pilot finance loans do not reach the levels of a four-year degree from a university, going to a flight school is certainly not cheap. Also, there is an acute shortage of trusted information available regarding flight school loans, so here’s the solution for you.
This article has all the information related to student loans for flight school, flight school financing and other aviation scholarships. Let’s get started!
How To Get Flight School Loans?
Like college, aviation training is quite expensive, and it’s highly unlikely you have the savings or income to pay for it in full. That means you’ll likely have to rely on loans. To receive flight school financing, you’ll take the same steps as a student pursuing a four-year degree — your options will just be more limited. Let’s look at each option, starting with federal loans.
Federal Financial Aid For Flight Training Loans
Federal financial aid should definitely be the first step for all students looking for financing. This is because federal aid comes with way better terms and repayment options. Unfortunately, federal aid is only available to students attending schools that are accredited, and most flight schools are not.
However, just because this holds true for the majority of schools, doesn’t mean that is the case for all of them. It’s best to ask schools you’re considering if they accept federal financial aid. Here are some types of federal student loans you could receive for flight school:
Direct Subsidized Loan: This type of loan is available to students who can demonstrate they have financial needs in documents. In this option, there are limits on how much you can borrow. The Department of Education pays the interest on subsidized loans while you’re in school, during deferment and for the first six months after you leave.
Direct Unsubsidized Loan: Here too, you have a limit on the borrowing amount but you are not required to show financial need. You’re responsible for paying all interest, and the interest will accrue while you’re in school.
Direct PLUS Loan: This type of loan is available to parents of aviation school students. They can borrow up to the cost of tuition minus any financial aid, but they’ll need to submit to a credit check to qualify.
Work-Study: Work-study programme provides part-time jobs to undergraduate, graduate, and professional students with financial needs. The money earned is used to pay for school.
In addition to possibly getting government-funded flight school loans, filling out the FAFSA could also unlock the Federal Pell Grant. Since this is not a loan, it doesn’t need to be repaid. You just need to demonstrate the financial need to qualify. The maximum award amount for the 2020-2021 school year was $6,345.
Flight School Loans: Private Lenders
Like I mentioned before, many flight schools are ineligible for federal loans. Even if you get one, it might not cover your full cost of attendance. In these cases, you might have to resort to private school loans for pilot training. But there are a few important things to know before applying:
- Not all private lenders offer loans for flight school
It’s important to know that not all private lenders issue loans for flight school, as it’s considered a trade school. On the other hand, some banks, credit unions and online lenders — such as CollegeAve, Wells Fargo and Sallie Mae — have specific loan programmes geared towards aviation school.
- Private loans differ from federal loans
Federal student loans are issued by the government, whereas private student loans are offered through private lenders and other financial institutions. For private loans, the eligibility requirements, interest rates and repayment terms are determined by the lender. Be sure to shop around to find the lowest rates and your best overall loan.
If you decide that a private student loan is the best option for you, all you need to do is fill the form in this blog. You can easily save a ton of effort by doing so and a professional team from UniCreds will contact you to ensure you get the loan for pilot loan training for yourself.
Other Types of Flight School Loans
In addition to federal and private student loans, there are other ways to find flight training loans. Make sure to explore some of these options:
- Your school’s financial aid office
Because there are limited options for student loans for flight schools, some schools offer financing programmes to students. Ask your school whether it has any financing programmes. If it does, compare the terms with private lenders to see if it’s the best deal you can get.
- Airline training programme
Airlines sometimes offer tuition reimbursement programmes or their own training programmes. If you’ve already determined which airline you plan to fly for, check to see whether it offers one of these programmes.
- Pilot training loans
In addition to flight school loans, you can find funding specifically for aviation training. Some examples include:
Aircraft Owners and Pilots Association (AOPA) Aviation Finance offers multi-rating (private and instrument) financing for as little as $75 per month, depending on your credit score and how much you borrow.
American Airlines Federal Credit Union is accessible to Air Transportation Industry employees for loans up to $40,000.
WE Florida Financial has the We Fly programme, which provides a fixed-rate line of credit for up to $30,000.
Understand About Abroad Education Loan
Banks That Offer Flight School Loans
- SBI Education Loan
- Bank of Baroda Education Loan
- Avanse Education Loan
- Canara Education Loan
- Incred Education Loan
How To Apply For A Flight School Loan?
These three steps should be followed if you want to apply for student loans –
- Investigate And Evaluate Lenders: To discover a loan that meets your needs, make sure to compare as many lenders as you can. Along with interest rates, take into account the conditions of repayment and any fees the lender may demand.
- Choose A Financing Option: Choose the loan option that works best for you after comparing lenders.
- Fill Out The Form Completely: Once you’ve decided on a lender, you must complete an application in its entirety and provide any necessary supporting documents, such as pay stubs or tax returns. The lender will send the documentation to your school for certification if you are authorised, and you will then receive any money that is left over as a refund.
Documents Required
Many public and private banks and financial institutions in India offer education loans for pilot training. Commonly requested documents include –
- Application and loan application forms are submitted via the lender’s portal.
- Information about the applicants and co-applicants/KYC guarantors
- Identity documentation such as a passport or PAN card
- Aadhar cards, passports, utility bills, etc. are examples of address proof.
- A recent six-month wage stub or bank statement
- Evidence of enrollment in a pilot training programme
- Evidence of one’s financial situation
- Income proof for the co-applicant, such as Form 16, pay stubs, tax records, etc.
- Other papers, including affidavits, declarations, loan statements from the past, etc.
- Documents as collateral, if necessary
Note: The full list of required documents should be obtained from the lender as requirements may differ between banks.
How Much Does Flight School Cost?
You can obtain your Private Pilot licence for between $15,000 and $20,000 if you wish to fly an aeroplane for recreation. For those who desire to fly professionally, the cost to obtain a Commercial Pilot License ranges between $75,000 and $100,000. (CPL). If you have a commercial pilot’s licence, you can fly for pay while you’re working towards the 1500 hours of flight time needed to acquire your airline transport pilot (ATP) certificate, which is a requirement for working for most major airlines.
Hope you found this blog helpful. Good luck with your career ahead. Cheers!
FAQs
1. Can I get a loan for my pilot training?
Banks or NBFCs may offer students an education loan for pilot training. The borrower is qualified for a good student loan that will cover their course-related costs based on the value of the collateral they provide.
2. How do you get money for pilot training?
While you may notice that several airlines provide scholarships and grants for pilot training to students, it is not possible to cover the entire cost of the programme and not everyone will be eligible for these scholarships. It is therefore quite common amongst many students to look for education loans offered by many banks and NBFCs for pilot training courses.
3. How much do you need to invest to be a pilot?
If you have no prior experience and want to become a pilot, it will cost you approximately $91,995, but if you have a private pilot licence, it will only cost you $71,995 approx. The flying training and certification required to get a commercial pilot licence are included in both prices.
4. How long does it take to pay off flight school loans?
Most students repay their student loans over a period of 10 to 15 years, with a 12-month grace period. When the course is over, the moratorium will begin. However, the duration might vary depending on the flexibility of your loan repayment options and other such factors.
Thank you for reading this blog on ‘Flight School Loans: Brilliant Options To Finance Pilot Training’. If you enjoyed reading this blog and would like to continue reading more about student loans then the following blogs may interest you.
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