Flight school loans most commonly come in the form of unsecured loans like personal loans.
It’s important to know the differences between a personal loan and a student loan. Student loans, especially those issued by the federal government, come with flexible repayment options and even allow students to defer payments if they re-enter school or have trouble making their payments.
There are no such protections for personal loans used for flight school. With a personal loan, you’re borrowing from a private lender and you will have one monthly payment with a fixed or variable interest rate. Fixed rates are generally preferable as they won’t change with market fluctuations.
Depending on how much you borrow, it may take you several years to pay back your loan. If rates happen to spike while you’re still repaying your loan and you’ve taken out a loan with a variable rate, you’ll face higher interest charges. With a fixed rate loan, you can at least rest assured that your rate won’t change before you’ve finished paying off your debt.
Personal loan rates vary depending on a bunch of different factors, such as your credit score, amount of debt you already have, and your income. As of this writing, you can find fixed rates as low as 5.49 percent and as high as 35.99 percent.
What is a Personal Loan?
A personal loan, also called a signature loan, is an unsecured loan, which means you can borrow money with no collateral based on your credit. From consolidating debt to financing a purchase to improving your credit, people choose personal loans because interest rates are usually lower than credit cards, which can save you thousands of dollars.
Financing can be tricky
If you dream of becoming a commercial airline pilot, you might be interested in attending flight school. Before you take out a loan to pay for flight school, it’s important to know that most commercial pilots working for mainline carriers are required to have a bachelor’s degree.
That being said, some pilots may choose to obtain certificates through flight school in order to supplement their college degree or possibly become an instructor in their own right. Still others may want to work for regional airlines, become corporate charter pilots or head to the skies purely for recreation. For these latter purposes, you may not necessarily need a bachelor’s.
But funding flight school outside of college can be tricky. Because student loans are not readily available for flight school students, those pursuing this career will likely have to look at alternative options for financing.
Private scholarships are among the best ways to get money for flight school — mostly because you’ll never have to pay that money back!
You can start your scholarship search with these organizations:
Further scholarships may be available directly through your flight school.