Learn to fly for less than $10 a day!!!

Ask anyone taking flight lessons and they will tell you that they are dishing out anywhere from $1,000/mo to over $3,000/mo for their flight training.  Who has that kind of money?

But, if you can spare about $10/day, your dream of earning your Private Pilot License can become a reality right now!

Yes, I’m talking about taking out a loan – but, it’s not that simple.  Most loans made for the purpose of flight training are education loans, so you have to be enrolled in an education program at a college or university.  Some private loans will lend you money to pay for flight training without being enrolled in a college or university, but they normally charge high interest rates and that means high monthly payments for years.

If you have good credit and some equity in your home, you can take out a home equity loan or a home equity line or credit (HELOC).  Because the loan is backed up by real property, the interest rates tend to be much lower than credit card rates and other unsecured loans.

Here are 3 reasons why a home equity loan or HELOC are better options for flight training:

1. Lower interest rates
2. Interest is tax-deductible
3. A HELOC is flexible, so if you need a little extra, you can take out more

To learn more about home equity loans and HELOC’s, just Google it, or visit this link.

Before you run to the bank to apply for one of these loans, please make sure you are disciplined about paying the loan back.  Follow these steps to get the financing you need and paying back the loan in reasonable amount of time.

Step 1:

Make sure you can afford the monthly payments.  Plan on paying about $250 per month for about 3 years.  That’s less than $10/day.  These numbers work out for an $8,000 loan, at 5% interest, with a term of 36 months (or 3 years).  If you’re diligent on your flight training, you can get your license in about 3-5 months and stay within your $8,000 budget.  This is KEY, don’t drag out your flight training or it will end up costing you much more than $8,000.

Where do you get $10/day?  Here are just a few ideas:

• Pack your lunch instead of eating out
• When going to the movies, look for a “cheap theater” – one that plays re-runs instead of current in-theater movies.  They can be as cheap as $3 per person.
• Stop getting your coffee at Starbucks – make your own and take it with you
• Cancel any monthly subscriptions you haven’t used in 3 months or more.  Many people are subscribed to gyms, clubs or other services but rarely use the benefits.
• Save on gas by biking to work or signing up for a grocery store that offers gas rewards for shopping there (it’s usually FREE)
• Do you have a spare room in your house?  Rent it out, either monthly or by the night – use a service, such as www.airbnb.com, for example.  You could make your loan payments just by using this service alone.

Step 2:

Apply for a home equity loan or home equity line of credit with at least 3 banks.  Shopping around for the best interest rates and best terms is worth it and can make a big difference in your monthly payment.  Make sure you pay attention to any annual fees you may incur.

If you’re still living at home with your parents, but are willing to work and pay them $250/mo, ask them if they could help you by taking out a loan using the equity on their house.  If they are hesitant, you can start making the payments for a few months to prove that you can do it.  Once they have 3-5 months of advanced payments, they should be confident that you will continue to do this and help you with a loan.

Step 3:

Once you’re approved, use online banking or some other type of automatic payment vehicle to make payments.  Making automatic payments will prevent you from being late on any payments and help keep your credit score high.

By following these steps and being a responsible borrower, you can become a pilot right now!

Disclaimer:  I am not a financial professional, so please make sure you consult with one before agreeing to take on debt.  Ensure you understand all the terms of the loan and that you understand the consequences of not paying the loan back.

Happy flying and have a beautiful day!