Real Answers from Real Pilots

Loan Advice


(Brittany) #1

Alright everyone I’ve applied for the Wells Fargo loan and am having a lot of problems with them. They are trying to say that my co-signer does not have enough income when she has enough just in investments to cover the entire loan amount. Has anyone found Sallie Mae easier to work with? I’m considering applying for that one today. Thanks for the feedback.


(Chris Engelhardt) #2

Brittany, Most banks don’t look at investments as income unless the person claims the investment income on their tax returns. Think of it this way, your co-signed could take all that tomorrow and play roulette and loose it all. Banks are required by the government to show the ability to repay the loan. Assets alone unfortunatly don’t show this.

Another example. You are unemployed yet have a million dollars in the bank… any large bank won’t lend you money because you have no cash flow, no reason to believe that in the near future you will income or ability to repay.


(Brittany) #3

Hi Chris,

Ya that makes sense. Guess I didn’t look at it that way. Thanks for your help!:slight_smile:


(Ekuntomiwa Ayo Fatinikun) #4

you can try to apply for both (50% wells, 50% sallie). that’ll improve your chances of being accepted


(Brittany) #5

Good idea! I applied for Sallie Mae so if it doesn’t get approved I’ll try that. Thanks!


#6

Brittany,

Typically we always recommend applying to both lenders.

Chris


(ATP Finance) #7

Brittany,

I wanted to address some of your questions about financing options with ATP.

We want to encourage you to apply with Sallie Mae for the full amount required to complete training. The underwriting criteria is different between the two companies, and we have them both on board to try and accommodate as many different financial backgrounds as possible.

Sallie Mae will consider savings and investments in their decision, so your co-signer could be approved with Sallie Mae, even though Wells Fargo was not able to offer you an approval.


(Brittany) #8

Okay great! I applied for Sallie Mae yesterday, so hopefully will hear something soon!


(Brittany) #9

Thanks for all your help! I feel that I definitely have a better shot them with Sallie Mae. Hopefully I hear something today as to whether I got the loan!


(Nick Stearns ) #10

Just out of curiousity, if I applied for a loan and got accepted, what is generally the monthly payment if you set it up with the longest term conditions… doesn’t have to be spot on but whatever is generally the monthly payment.
Thank you,


(Tory) #11

Nick,

Google “loan repayment calculator.” With the amount, interest rate and
period you can figure it out fairly quickly.

Tory


(Nick Stearns ) #12

Do you know what the longest term rate is? 4 years? 10 etc… I would have to quit my job in order to go through ATP, so no more income, just want to see how small I can get the monthly payment to.
Thank you,


(Tory) #13

I can’t speak for everyone else, but mine is for 15 years.

Tory


#14

Nick,

I really recommend that you contact the admissions department and talk to them about your loan questions. They are the experts on this and can give you far better answers than we can.

Chris


(Nicole Hawkins) #15

Hey Brittany!

I went through a similar situation with Wells Fargo. They wouldn’t add me to the loan or consider my income apart of it because technically I wouldn’t be having any income flow coming in while in school. This left my co-signed getting declined for the sole loan, even doing half the loan. He has better credit and income flow then me so I was dumbfounded at this, they will not accept me or run me as a creditor until ATP waived my restriction to work. Well, ATP doesn’t do that so I decided to go with Sallie Mae and got approved for 50% then after 30 days went for the other 50% my co-signer with myself got approved and I decided to run myself for the other 50% and got approved. So trying all you can is there even if you don’t get approved. Trust me, the ATP finance department is SO amazing to work with, Kirk is my hero and so understanding. So no matter the troubles you may go through on your finance journey for ATP, I’m told it is the most challenging. Good luck!!

I’m always a message away if you have any questions. :grin:


(Michael Adebanjo) #16

Do the results of these applications depend on an individual’s credit health???


#17

Michael,

Of course they do. The banks are making a very large, unsecured loan, they want to know that they will be able to get their money back someday.

Chris


(Brittany) #20

Hi Nicole! Thank you so much for the response! Wow your story sounds as fun as mine :sweat_smile: oh gosh this loan thing has been a nightmare! Kirk has been helpful and I’m glad you finally got the loan issue worked out :smile: I appreciate the advice too! With my co-signer, she wasn’t aware that there was a corporate credit card under her name and someone was racking up a lot of debt in her name. So she was literally in the hole a few grand and there were late charges. We found this out after being denied for both loans. It was putting her debt to income ratio in the negative. My advice too is to check credit before applying. At this point I’m second guessing taking a loan with all that interest and may save money and go elsewhere or atp in a few years. Or who knows, maybe apply for half​:smile: at this point I have to wait anyway and decide. Thanks again for your feedback :smile:


(Michael Adebanjo) #21

Thanks for that information Chris…


(Nicole Hawkins) #22

Hey Brittany,
Haha, right? I almost gave up too, but something told me to just try myself. Yes, the interest rates SCARE me. But you know what? It truly is an investment, with the sign on bonuses, and the tuition reimbursement, I can’t say I saw that anywhere else. But you gotta do what is right for you. I wasn’t planning on going to ATP for another two years, but a series of events made me speed up my timeline, and well I’m so happy to be moving forward with it. It’s all done by algorithms I was told when it comes to the application process, so I was a little mad at sallie mae for awhile, still kind of salty about it. But, in the long run I’m happy to be on my way to getting this rolling. You have to weight your pros and cons, and I could of gone somewhere else, but it would have been a slow process, and more money in the long run. Plus, the network ATP has built for graduating pilots, you can’t beat it. Plus, with the pilot shortage it just seems like its a great time. I hope you can figure out what to do.

:slight_smile: Nicole