14% Sallie Mae loan for aviation degree - predatory or normal FAFSA gap financing?

omg that interest rate is insane!! my brother got a similar loan for his engineering degree but it was like 6.5% through discover student loans. have you tried ANY other lenders besides sallie mae??? also i think that 800 credit score might not matter as much as you think if your step daughter is the primary borrrower

Thanks - had no idea there could be such a difference between lenders. We haven't tried any others yet because the financial aid office basically pushed Sallie Mae. I'll look into Discover tonight. The weird thing is that her mother was the primary co-signer, not just a guarantor, so her 800 score should've counted for something!

Financial aid advisor here. That 14% rate is unfortunately not uncommon for specialized programs like aviation degrees, which lenders consider higher risk. However, you absolutely should shop around. Consider these options:\n\n1. Credit union student loans - often 2-5% lower than Sallie Mae\n2. School-specific payment plans to reduce total loan amount\n3. Parent PLUS loans - currently at 8.05% for 2025-2026, much better than 14%\n4. Aviation-specific scholarships (Women in Aviation, AOPA, etc.)\n\nThe $5k from FAFSA is likely Direct Unsubsidized loans, but have you confirmed if she's eligible for any grants? Also, make sure you've properly reported all parental information correctly on the FAFSA - sometimes small errors can reduce aid eligibility significantly.

Thank you so much for these suggestions! I didn't realize Parent PLUS loans were that much lower. We didn't consider them because the financial aid office told us private loans were our only option after the $5k/year. I'll definitely look into credit unions too. And no, no grants were offered - her SAI score was too high with both parents' incomes combined, even though we're not actually contributing much to her education.

I went through something EXACTLY like this for my aviation program!!! Sallie Mae is the WORST. They quoted me 7% initially then jumped to 15.8% after approval. I ended up taking a gap year, working as a flight line tech, and applying for every scholarship I could find. Cut my loan needs in half. Also check if your program participates in income share agreements - some aviation schools let you pay a percentage of your income after you get hired instead of traditional loans.

A gap year might be worth considering. I hate to delay her dreams but not at the cost of crippling debt. Did taking that year off hurt your career progression at all? And I've never heard of income share agreements - that sounds promising! Will definitely ask her program about that option.

Have you tried calling Federal Student Aid directly to see if there are additional federal loan options? My daughter's situation changed during her second year, and we discovered she was eligible for more than what initially appeared. The online systems don't always show everything, and sometimes speaking directly with a FAFSA specialist makes a difference. \n\nI struggled for weeks to get through on their phone system until someone recommended Claimyr.com - it helped me connect with an agent in minutes rather than hours of hold time. They have a video demo showing how it works: https://youtu.be/TbC8dZQWYNQ \n\nWorth trying before committing to those insane Sallie Mae terms.

I hadn't considered calling FSA directly. That's a great idea - maybe there are options the school's financial aid office didn't mention. I'll check out Claimyr since I definitely don't have hours to waste on hold. Thanks for the suggestion!

Sallie Mae has always been a SCAM!!!! I got suckered into their loans 12 yrs ago and Im STILL paying them off!!! They started at 9% and then kept raising it every few yrs. RUN AWAY!!!! Check with your local credit union - mine offers student loans at prime+2% which is WAY better than the garbage Sallie Mae pushes!!!!

It's not necessarily a scam, but their rates are definitely on the higher end. Private student loans are risk-based pricing - if your debt-to-income ratio was high or limited credit history, rates increase. That said, 14% is extremely high for a co-signer with 800 credit score, so shopping around is smart advice.

One thing to consider is whether this degree and career path justifies this level of investment. ATP programs are expensive, but commercial pilots can earn $90K+ after a few years and eventually $200K+ at major airlines. Calculate the debt-to-income ratio for the career - anything above 1:1 (total debt to starting annual salary) is considered high. \n\nAlso, many regional airlines now offer tuition reimbursement programs where they'll help pay off your loans if you commit to flying with them for a certain period. Ask the school if they have partnerships with any airlines offering these programs.

That's a great perspective. She's definitely committed to being a commercial pilot, and the salary potential is what makes us think this might still be worth it despite the costs. I hadn't heard about airline reimbursement programs - that could be a game-changer. Will definitely look into that!

u tried a loan aggregator yet? sites like Credible or Earnest will show u rates from multiple lenders at once. my cousin got a 6.8% for nursing school that way. also Sallie Mae is notorious for the bait n switch with those initial rate ranges lol

No, I didn't even know loan aggregators existed for student loans! That's exactly what we need. Going to check out Credible tonight and see what other options are out there. Thanks for the tip!

Following up on my earlier comment - another option to consider is breaking the education into phases. Many students complete their private pilot license separately (often at a local flight school), then transfer to a college program to complete their ratings. This can significantly reduce the total cost. Additionally, some community colleges offer aviation programs with much lower tuition, and credits can transfer to the specialized schools later. The path to ATP doesn't have to be a single, expensive program.

This is brilliant advice. I didn't realize you could piece together the training like that. We've been so focused on the

Almost forgot! Make sure to check if any airlines in your area offer cadet programs! United, American, Delta, and even some regionals have pipeline programs where they help cover education costs. They're competitive but worth applying to. Sometimes they're not advertised well on the school websites.

Thank you for this! She's actually near a United hub, so I'll have her look into their cadet program immediately. Even if it's competitive, it's worth trying for. These industry-specific options are exactly what we needed to hear about.

As someone new to navigating student loans, this thread has been incredibly eye-opening! I had no idea there could be such huge differences between lenders or that Parent PLUS loans might actually be better than private options. The 14% rate from Sallie Mae does seem excessive, especially with an 800 credit score co-signer. I'm bookmarking all these suggestions about credit unions, loan aggregators like Credible, and airline cadet programs. It's scary how easy it would be to just accept the first offer without shopping around. Thanks everyone for sharing your experiences - this is exactly the kind of real-world advice that's so hard to find elsewhere!