6 Mistakes to Avoid When Looking for Pilot Training Loans

Professional pilot training is a lengthy process that starts with introductory flight training, leading all the way to obtaining an airline transport pilot certificate. During the 1,500 hours it takes to generally qualify for the ATP, students progress through many flight certificates and ratings and take in-depth knowledge, oral, and flight exams to ensure proficiency. Some accelerated schools can progress a student from zero hours to ATP in as little as seven months—in an absolute minimum time frame—while other programs stretch training over four years.

Depending on what type of pilot a student wants to become, the training can vary. 

Flight training costs can vary greatly depending on the type of school a student attends. Most students aspiring to be a professional pilot will attend an accelerated flight school program, a two-year college, or a four-year university to complete flight school. 

For students looking to become a pilot at an accelerated program, pilot-training-specific loans or personal loans can be utilized to fund the training. Students who attend college and university aviation programs may use traditional student loans to pay for school. 

Most accelerated programs provide in-house flight school financing options for students. Some other companies like AOPA, American Flyers, and U.S. Aviation Academy provide flight training loans for students not attending a college or university.

When choosing a lending institution for pilot training loans, it is important to explore all possible options such as scholarships, interest rates, and payback periods before signing the dotted line. 

Before applying for loans, apply for scholarships. There are hundreds of flight training scholarships available for aspiring pilots ranging from $500 to a complete coverage of flight training costs. This is free money available for student pilots and because a lot of pilots forget to apply, the numbers may weigh in your favor. 

While the idea of no interest and a high limit credit card may entice you to consider charging your flight training, the likelihood of paying back the cost of flight training in totality before the zero-interest interest introduction period ends is slim. Paying back $75,000 in 14 months is very optimistic. Once the no-interest period runs out, a lot of credit card interest rates can increase as high as 30 percent, which can make this a very costly mistake. 

While paying out of pocket for flight training may require you to extend the length of your training, it leaves you with no debt. Starting a career with no educational debt can take a lot of weight off your shoulders and wallet every month. If you do want to complete your training quickly while still paying out of pocket, save up in advance before you start.

No one wants to be in the situation where they cannot pay back their loans, but sometimes life happens. Secured loans require collateral for approval and for loans in the neighborhood of $100,000, they may require you to put up real estate. If by chance you are stuck in a tough situation and get behind on payments, the bank can repossess your house, car, and other assets to pay back your loan. 

A lot of people believe that pilots make great money, and while that can happen, the big bucks come a few years after entering the industry. After flight training, pilots must gain hours to be eligible for an ATP and this is likely achieved by spending time as a flight instructor. Flight instructors make roughly $20 to $40 an hour depending on the school they instruct for and first officers enter the airlines making between $40,000 to $50,000 a year. To ensure you do not dig a deeper hole, only take out loans you know you’ll be able to afford after the training period ends. 

While military life is not for everyone, aspiring pilots looking to shift the monetary investment to a time investment may consider enlisting or commissioning into the military to become a pilot. Every branch of the U.S. military has aircraft, meaning every branch needs pilots. The military will send you to flight school, and instead of you having to pay for flight costs, the military pays you. After leaving the service, veterans can obtain an ATP at 750 hours instead of 1,500 hours. 

There are many tracts to become a professional pilot and all of them require flight training. Flight training costs vary depending on the type of school attended. Understanding the different ways to fund the training journey and mistakes to avoid may lead to a more successful aviation career.