14% Sallie Mae interest rate for aviation degree - predatory or normal for FAFSA gap?

14% is absurdly high - even in today's market. My son is also in an aviation program and we were able to get private loans from Citizens Bank at 7.8% with a similar credit score for co-signing. A few things to consider: 1. Did you apply to multiple lenders? Never accept the first offer. 2. Check with credit unions - they typically offer 3-5% lower rates than Sallie Mae. 3. Look into aviation-specific scholarships and grants - there are tons for women in aviation if that applies. 4. Consider starting at a community college for prerequisites to reduce overall costs. The real issue is FAFSA only counting the federal loan in your aid package. Did they explain why she wasn't eligible for more federal aid? Was your Expected Family Contribution too high? $5,500 is just the standard dependent student loan amount regardless of program cost.

yea thats crazy high interest! my cousin did a similar aviation program and ended up with a collection of smaller loans instead of one big one. he did some private loans but also got scholarships from regional airlines that had pilot shortages. i think republic airways and some others have programs where they help pay for school if u agree to work for them after. might be worth looking into

Sallie Mae is NOTORIOUS for their high interest rates. They trapped me with 12% loans 15 years ago and I'm STILL paying them off!!! Run away as fast as you can! Their whole business model is preying on desperate students who don't know better. Aviation is expensive but there are WAY better options. Call the financial aid office at her school and ask specifically about aviation financing programs. Many flight schools have partnerships with credit unions or industry-specific lenders that understand aviation career paths better than Sallie Mae. Also look into the American Airlines Cadet Academy and United Aviate program - both help fund training in exchange for a job pathway.

As a financial aid counselor, I'd strongly recommend you look into a few options before committing to those Sallie Mae terms: 1. First, double-check your FAFSA - make sure you've claimed all education credits and deductions correctly. Sometimes a correction can change your SAI and qualification for additional aid. 2. For aviation specifically, look into the Airline CEOs Private Pilot Program and the Aircraft Owners and Pilots Association (AOPA) scholarships. 3. For private loans, always compare at least 3 lenders. Credit unions typically offer the best rates, followed by traditional banks. Online lenders are hit or miss. 4. Consider a Parent PLUS loan - current federal rates are around 8.05%, much lower than 14%. 5. Some flight schools offer income share agreements where you pay a percentage of your pilot income after graduation instead of fixed loan payments. The 14% from Sallie Mae is definitely on the high end, even in today's market.

Have you tried calling Federal Student Aid directly to see if there are any additional loan options or if there was a mistake in your FAFSA processing? I was in a similar situation last year with my son's expensive program and spent WEEKS trying to get through to an actual person at FSA. Finally used a service called Claimyr (claimyr.com) that got me connected to an agent in about 10 minutes. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. The agent I spoke with found that our FAFSA had been incorrectly processed and we qualified for an additional $4000 in subsidized loans plus work-study that hadn't shown up in our initial offer. Definitely worth checking before committing to those private loan rates.

14% is absolutely predatory, especially for someone with an 800 credit score co-signing! Please please consider a gap year where she works and saves money before starting this program. My brother fell into this exact trap with an aviation degree and private loans, and 6 years after graduating he's only making $55k as a regional pilot while drowning in $3200/month payments. The aviation industry promises big salaries but those come after YEARS of barely making enough to survive. Some of his classmates who couldn't find aviation jobs just gave up and their loans went to collections, ruining their credit for life.

did u try getting a home equity loan instead? thats what we did for my daughters expensive program. rate was like 6% and tax deductible too! way better than any student loan and u can spread it out longer if u need to.

Also, make sure your stepdaughter understands the reality of aviation career progression. The first few years are TOUGH financially: - Flight instructors make $25-40k/year - Regional airline first officers start at $50-60k - It typically takes 3-5 years to move up to captain or major airlines Only then does the salary jump to $100k+. Can she realistically handle $2,800/month in loan payments during those first 3-5 years? That's about $34,000 per year just in loan payments - likely more than her take-home pay as a new pilot. Maybe consider a part 61 flight school path instead of the expensive ATP program? It takes longer but costs significantly less.

As someone who went through a similar situation with my daughter's expensive program, I'd really recommend hitting the pause button on that Sallie Mae loan and exploring ALL your options first. 14% is highway robbery, especially with an 800 credit score co-signer. Here's what I'd do in your shoes: 1. Apply for Parent PLUS loans immediately - 8.05% is way more manageable than 14% 2. Check with your local credit unions - mine offered 6.2% for education loans 3. Look into that HELOC option someone mentioned - if you have home equity, rates are typically 6-7% 4. Have her apply for every aviation scholarship out there - Women in Aviation International, AOPA, regional airline programs The math on $2,800/month payments is just brutal for a new pilot. Even if she gets hired right away, those first few years in aviation are financially rough. My friend's son is a regional pilot making $52k and there's no way he could handle payments that high. Maybe consider having her do her private pilot license first through a local flight school to make sure she really loves flying before committing to the full program? That would buy you time to find better financing options too.