Career Development Loans
Join Date: Oct 2001
Location: Ready to Depart
Age: 46
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Firstly, to wanabapilot, aim to get to University and join a University Air Squadron. The quality of the flying is second to none, and the extra-curicular activities are even better (so I have been told - don't remember half of mine, far too drunk).
A couple of ex-UAS pals ended up getting Business development loads (or such like) to help pay for their ATPL training. The banks don't like you asking for £30-40k without some up-front wonga from you: Say, you find £10-15k, they find the rest.... .However, last month a friend from work split with our company to go it alone. When he started asking about Business loans (he was looking for capital in the region of £40k) he tried it on with the bank, and won:. ."8.5% fixed?", he said, " but my mortgage is only 4%. I could go back to the Halifax and they'd give me that....". .And guess what? The bank offered him a business loan at 4%.... better than that, 4% fixed (unlike the mortgage of course)!
hehe! Nice one!
A couple of ex-UAS pals ended up getting Business development loads (or such like) to help pay for their ATPL training. The banks don't like you asking for £30-40k without some up-front wonga from you: Say, you find £10-15k, they find the rest.... .However, last month a friend from work split with our company to go it alone. When he started asking about Business loans (he was looking for capital in the region of £40k) he tried it on with the bank, and won:. ."8.5% fixed?", he said, " but my mortgage is only 4%. I could go back to the Halifax and they'd give me that....". .And guess what? The bank offered him a business loan at 4%.... better than that, 4% fixed (unlike the mortgage of course)!
hehe! Nice one!
Join Date: Jan 2002
Location: Manchester
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Can you use the CDL to train at BAe Jerez, or are there limitations on training in the uk? . . Thats the place I would like to go, particularly with fixed cost inc accomodation + full board, it would sort out a lot of problems
Join Date: Apr 2001
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Just a few facts to put things in perspective.
One month after you complete your course, your agreement is with the bank, which administered the loan. You start paying interest at around 12.9% on the total amount borrowed. Yes, it’s true that you can get up to 3 extensions of interest free payment up to a maximum of 17months if the **** hits the fan, but lets assume that things go to plan.
Have a look at Barclays site. The clearly state that the interest rate is charged at 12.9% after the interest free period.
Now where all of your above calculations fall down is that modular students don’t normally borrow the full 8k at once. In fact the first module that you can qualify for a CDL is ATPL theory. Now that will only cost you about 3.5k and last about a year. Therefore the interest free amount in that year is not on 8k, on which you will ultimatly pay 12.9% for that years borrowings ( all of the examples quoted by the banks are based on the whole loan being drawn at once)
If you are to use the CDL towards an integrated course or IR, you will technically be liable to pay the loan one month after completion, which will only mean about one year’s free interest. On that deal your ultimate APR is way above the 6.9% quoted.
The idea of replacing the 12.9% loan as soon as the interest free period is over is all well and good. As I said earlier, you ill get a better rate on a credit card!! However, your agreement is with the Bank. If you wish to pay the amount back early, there IS a penalty which varies from bank to bank. This will be anything form 2 to 4 months interest at the full 12.9% and that could be as much as £600.
The scandal of the whole thing is that in this day and age, the Government allow the banks to charge 12.9%, and that my friends is the loan deal to which we have signed up.
Read the small print well!!
One month after you complete your course, your agreement is with the bank, which administered the loan. You start paying interest at around 12.9% on the total amount borrowed. Yes, it’s true that you can get up to 3 extensions of interest free payment up to a maximum of 17months if the **** hits the fan, but lets assume that things go to plan.
Have a look at Barclays site. The clearly state that the interest rate is charged at 12.9% after the interest free period.
Now where all of your above calculations fall down is that modular students don’t normally borrow the full 8k at once. In fact the first module that you can qualify for a CDL is ATPL theory. Now that will only cost you about 3.5k and last about a year. Therefore the interest free amount in that year is not on 8k, on which you will ultimatly pay 12.9% for that years borrowings ( all of the examples quoted by the banks are based on the whole loan being drawn at once)
If you are to use the CDL towards an integrated course or IR, you will technically be liable to pay the loan one month after completion, which will only mean about one year’s free interest. On that deal your ultimate APR is way above the 6.9% quoted.
The idea of replacing the 12.9% loan as soon as the interest free period is over is all well and good. As I said earlier, you ill get a better rate on a credit card!! However, your agreement is with the Bank. If you wish to pay the amount back early, there IS a penalty which varies from bank to bank. This will be anything form 2 to 4 months interest at the full 12.9% and that could be as much as £600.
The scandal of the whole thing is that in this day and age, the Government allow the banks to charge 12.9%, and that my friends is the loan deal to which we have signed up.
Read the small print well!!
Join Date: Apr 2001
Location: london (United Kingdom)
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Got the CDL from Royal Bank Of Scotland for me MSc course. Paid it back in full right after the course with no interest. Paid back exactly what I borrowed.
Regards. .Ade
Regards. .Ade
Join Date: Apr 2001
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Ade is right,
I forgot to add that you can pay the loan back in full without penalty PROVIDED, this is done at any time before the end of one month of completing your course. At that time you effectivley move from being a Government customer to being a Bank customer!
Miss that and penalties do apply. I can assure you that this is the case.
I forgot to add that you can pay the loan back in full without penalty PROVIDED, this is done at any time before the end of one month of completing your course. At that time you effectivley move from being a Government customer to being a Bank customer!
Miss that and penalties do apply. I can assure you that this is the case.
Join Date: Mar 1999
Location: UK
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You can do a degree whilst working as a pilot. Although it depends on what kind of flying you are doing. Working for a regular scheduled or charter company you should have enough time to do a distance degree (OU or similar).
I was thinking of studying a degree while flying, but i dont know if ill be able to fit it in. I think aeronautical engineering involves quite a lot of lecture, etc. so i dont think i'd have time. . .Also, can you get a CDL. if you are studying at uni??
Join Date: Mar 1999
Location: UK
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You can get a CDL for a career-related course. So I guess it depends on what course you are doing and how good you are at bulls*itting.. .As mentioned, I am not suggesting doing a full time course whilst working, only a part-time distance learning type course. Usually its impossible to get the same day off each week, so an evening course probably wouldn't work.. .Some Uni's offer modular courses that fit in well with airline work.
Join Date: Jan 2002
Location: U.K
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Aeronautical/Aerospace engineering degrees are very demanding and involve alot of lectures, group project work and picking lecturers brains, you are unlikely to find one suitable for part time. A BSc in Aero Technology or somthing similar will be a better bet for part time in my opinion. . . I would be interested to know what the airlines perspective on this is.
Also apparently Barclays and Clydesdale are getting more stringent about handing out CDL's.
Also apparently Barclays and Clydesdale are getting more stringent about handing out CDL's.
