Paying for pilot training as a parent: Loan options and long-term value

Financing pilot training as a parent: Financing and loan options

You play a critical role in making your child's dream of being a pilot a reality. It’s never too late to explore loans as a financing option. Loan support is a significant step toward successfully learning how to become a pilot and achieving the financial stability and career fulfillment that come with an aviation career.

Understanding the investment as a parent

Investing in your child now can help them become professional pilots and will pay off greatly down the road. Entry-level pilots can typically expect to start at around $50,000 to $80,000 per year. Evaluating financing options such as parent loans for pilot training can help you secure success for your child’s future in aviation.

At 5 years in, income could surpass $150,000 as you advance through airline career pathways. First Officer and Captain positions offer job security and financial growth in an industry projected to experience ongoing pilot shortages. The latest data from the Bureau of Labor Statistics has consistently revealed, year after year, the prospective career growth for airline pilots, indicating that becoming one is a stable career choice.

Cost breakdown of pilot training at Acron Aviation: What parents need to know

At Acron Aviation Academy, we're transparent about costs so parents can budget effectively. Our all-in programs include all hours of training needed, examinations, possession of official FAA equipment, and living expenses.

Training at Acron Aviation means the cost of pilot training is clear, with no unexpected expenses like those found in piecemeal programs at other flight schools. From day one, you’ll know the cost of the program and where every dollar is going.

Locals can save on tuition with the Bright Futures Scholarship, which provides up to 100% tuition coverage for training. Assessing whether a parent can take out a loan for flight school and understanding your financing options is just as crucial as choosing the right school.

Parent loan options for flight school

Career-Training Student Loans, such as Sallie Mae Smart Option and Stratus Financial, are options that provide loans for pilot training. These loans typically cover the full cost of training with competitive interest rates and flexible repayment terms.

Key terms for evaluating a parent loan for pilot training:

• Borrowing limits: Typically, this is the total cost of training.
• Interest rates: Rates vary but are competitive based on credit reports.
• Repayment windows: Customizable repayment windows are available.
• Cosigner regulations: Often required for loan approval and competitive interest rates.

When weighing loan options, look at APR versus customizable repayment windows and factors such as deferment benefits.

Weighing the APR versus the advantages of deferment:

• APR interest rate: Compare if the savings are better with a fixed or variable rate.
• Loan repayment: Review how easy repayment will be and if there's a grace period.
• Deferment options: Investigate qualifying factors and how long you can defer.
• Overall loan amount: Factor in the APR, any applicable fees, and how much interest will accrue while in deferment to assess the overall amount.
• Financial flexibility: Evaluate how deferment impacts your short-term and long-term budgeting.

Acron Aviation Academy can help provide guidance on flight school loans so that you’re prepared to get the best rates possible when it’s time to apply.

Co-signing vs. taking the loan yourself

One of the biggest challenges with how to apply for a pilot training loan is deciding whether to cosign or take out the loan yourself. By taking out the loan in your own name, you are responsible for your child's debt, regardless of what happens, as long as they are a co-signer with you (and have excellent credit).

Taking the loan yourself could also hurt your credit score, as other lenders might view two people as a risk. However, it may help you secure a lower interest rate. Evaluate all pros and cons financially and discuss with your child before making your determination.

Options if parent loan for pilot training denied

It’s okay if you're denied a parent loan for pilot training. There are plenty of alternatives to keep your child on the right track to become a pilot:

• New cosigner: A new qualified cosigner can improve approval chances.
• Credit repair: Repair any credit issues to raise your score.
• Smaller Program: Enroll in a shorter program, such as a Private Pilot Certificate.
• Incremental loans: Obtain loans in smaller amounts throughout the program.
• Scholarships: Explore other options for aviation scholarships.
• Income share agreements: Pay a percentage of your income once employed.

Ready to Invest in Your Child's Future?

Your child's career in aviation awaits. Request information by contacting us for assistance in enrolling and exploring your financing options.