She was almost finished with her training as a pilot when she received the title Miss Belgium 2018 in January 2018. To pay for her 5-year airline pilot training, Angeline Flor Pua had taken out a Personal Loan of 80,000 dollars. She completed this education perfectly during her busy Miss year, via an adapted schedule. But 7 months later she is still looking for a job as a pilot. Familiarity apparently does not just open the door of the cockpit, no matter how impressive her double performance was.
In this article, we discuss the costs and conditions of a loan of 80,000 dollars, the possibilities to take out such a loan cheaper and of course the chances of Miss Belgium for a job as a pilot. In addition, we take a look at the salary of pilots and the possibilities to borrow money for a (foreign) study.
Pilot loan costs and conditions
The pilot training costs around 100,000 dollars and lasts 5 years. In the Netherlands, until recently it was possible to take out a special Personal Loan for pilot training courses, via Good Credit. But the conditions were tough and the ‘pilot loan’ meant an expensive investment: a fixed interest rate from 4.25% with a 1-year term, rising to 4.95% with a 10-year term.
Personal Loan can be much cheaper
With credit brokers such as Good Finance, a Personal Loan is much cheaper (from a 3.9% fixed interest rate). Nevertheless, pilots in training in the Netherlands were dependent on that expensive loan through Good Credit, because the conditions are different for ‘standard’ consumer loans.
Good Finance, for example, must comply with the affordability of a loan for consumers, based on current income and expenses. The most important conditions here are a permanent job and the minimum age of 21 years. That turns out to be a practically unattainable card for (aviation) students, certainly with loans of 80,000 or even 100,000 dollars.
At Good Credit, such a customized loan was sometimes possible because the bank looked at the estimated future income. However, this approach posed too many risks, both for the bank and for the training pilots: because what if a prospective pilot cannot complete / finish the training? Or if there is no job with an income that matches the contracted credit of at least 100,000 dollars (pilot training costs)? That is why Good Credit no longer offers this ‘pilot loan’ .
As a future pilot it is therefore difficult to borrow money for the training. In the Netherlands there is no longer a special loan for pilots available. But from now on it is possible to repay existing loans (such as those from Good Credit) more cheaply: via transfer.
Transfer a pilot loan
Once pilots have a permanent appointment, they can transfer their expensive loan via Good Finance to a much more affordable Personal Loan. The fixed interest starts at 3.9% and interim repayment is always allowed. Whereas with a pilot loan still in progress only 5% extra penalty-free may be repaid, there is no limit at Good Finance on interim penalty-free extra repayment.
For pilots, transfer to a Personal Loan from Good Finance is a great solution. The salary as a pilot is rising rapidly. As a result, additional repayments without penalty can take place more and more quickly and pilots will be able to go through their lives debt-free the sooner.
Should Miss Belgium be worried?
No. We have long since left the crisis years, in which recent pilots were unemployed at home. Aviation is growing and flourishing like never before. Both in America, China and in Europe. We also benefit from an improving market in our own country. For example, KLM brought in nearly 150 new pilots in 2017 and nearly 120 in 2018. This growth is not only due to increasing air traffic, but also due to the upcoming retirement of a large group of senior pilots. In a little while there will be fighting for good, recently graduated pilots!
For Miss Belgium it is therefore just a matter of time before she can start her dream job and start paying off her high loan.
What does a pilot earn?
For pilots, the costs go well for the benefit. The pilot training costs around 100,000 dollars and takes 5 intensive years. Then it can go fast: a starting traffic pilot earns at least 27,000 dollars on an annual basis and this can quickly add up to 70,000 dollars or a ton (or more). For those who want to get rid of the expensive ‘pilot loan’ as quickly as possible, transferring to the much cheaper Good Finance Personal Loan is a great option. The loan taken over can then be repaid in an accelerated manner via the rapidly rising pilot’s salary.
Borrow money for (foreign) study?
Are you considering (again) entering the study desks? For a career switch or to deepen a personal interest? But does your employer not pay for the training and do you not have enough savings yourself? Or do you want to study abroad (with additional costs such as accommodation)? Then borrowing money for a study can certainly be a responsible option. Not just for pilots, but for everyone who wants to take a higher flight.