How To Get a Flight School Loan: Options for Aspiring Pilots

A career as a pilot offers the opportunity to travel the world and make a good living while doing it. Airline and commercial pilots earned a median annual salary of more than $171,000 in 2023, according to the latest industry data compiled by the Bureau of Labor Statistics.

But before you can get started, you'll need to get an Airline Transport Pilot (ATP) certificate. If you're starting from scratch with no experience, that can cost you around $117,000, according to ATP Flight School. Loans for flight school are a common way many prospective pilots fund their training.

Current private student loan rates

What are flight school loans?

Flight school loans help you pay for your aviation training if you don't have the money to cover the costs upfront. However, they can differ from traditional student loans. While it's possible to take on federal and private loans for flight school, you can only do so in certain circumstances.

“Flight schools offer loans primarily through private lenders, credit unions, and other organizations. Some might offer federal student loans, but they are in the minority,” says Dan Bubb, a former airline pilot and aviation historian at UNLV Honors College.

Oftentimes, flight schools don't meet the requirements for traditional student loans. So students typically need to look for private lenders that accommodate career training or certificates or look into financing through the school.

Federal loans for flight school

Federal student loans from the Department of Education are available to help finance flight school, but eligibility is contingent on the school being accredited, participating in Title IV federal financial aid programs, and offering qualifying degree or certificate programs. For instance:

• A Professional Pilot Science Associate Degree or an Aerospace Sciences Bachelor's Degree from Polk State College
• An Aviation Science Degree from Aviator College
• An Associate Degree in Aviation Science from Orange Coast College

To determine if your school qualifies for federal financial aid, you can search the Department of Education's accreditation database. Below are the federal student loan options and their interest rates for the 2024-25 school year:

You must satisfy several criteria to be eligible for federal student loans. These include being a U.S. citizen or an eligible noncitizen, having a valid Social Security number, enrolling in an accredited degree program at an approved school, and maintaining satisfactory academic progress.

Loan limits apply to federal student loans, such as Direct Subsidized and Unsubsidized Loans. A first-year student who can be claimed as a dependant on someone else's tax return can borrow as much as $5,500, while independent students may have a borrowing limit of $9,500. However, only $3,500 of this amount can be in Direct Subsidized Loans, which are available to undergraduates who demonstrate financial need and include an interest subsidy. To apply for these loans, students must complete the Free Application for Federal Student Aid (FAFSA).

Many flight schools do not qualify for federal student loans as they are often classified as trade schools and lack accreditation.

Private loans for flight training

Private student loans can potentially fund your education if you can't get federal student loans. Unfortunately, your flight school may prevent you from qualifying for private student loans since these loans are typically only available to students enrolled in a four-year degree-granting program.

The good news is some private lenders offer loans for a certificate- or career-based program, which may allow you to get a loan for flight school. Some loan options and lenders include:

• Sallie Mae's Smart Option Student Loan
• College Ave's Undergraduate and Graduate Career Loans
• Abe student loans for certificate programs
• Meritize student loans for flight school
• ZuntaFi flight school loans

When comparing federal vs. private flight school loans, be aware that private loans don't have the same repayment options or benefits as federal loans. Private lenders don't offer income-driven repayment plans or loan forgiveness opportunities. You also may be unable to take advantage of deferment or forbearance options.

“Federal loans are preferable because there is much greater flexibility when it comes to repayment,” says Martin Lynch, president of the Financial Counseling Association of America. “Private lenders have not been very creative when it comes to repayment plans that suit the income of their borrowers.”

Alternatives to loans for flight school

Flight school loans can help you finance your education. But there are worthwhile alternatives to consider, including:

• Scholarships and grants: You can get financial awards through scholarships and grants that you don't have to pay back. Aviation students can look into Amelia Earhart Memorial Scholarships, the Navigate Your Future Scholarship, and AOPA Flight Training Scholarships. “Students can go to the Federal Aviation Administration's website to see which scholarships and grants are available, in addition to doing an Internet search to find out which private foundations offer scholarships and grants. Flight schools also might have scholarship and grant information,” says Bubb.
• Employer tuition reimbursement: Some airlines, such as Horizon Air and SkyWest, offer tuition reimbursement to help pay for your education.
• Payment plans: See if your flight school offers any payment plans that break down costs into more manageable payments.
• Savings: Putting away funds on a consistent schedule can help you save up for the cost of flight school.

Strategies for managing flight school loans

1. Budget for monthly payments: Start by adjusting your budget to account for the monthly repayments on your flight school loans as soon as you enter the repayment phase. This ensures you manage your finances effectively without overextending.
2. Explore student loan refinancing options: Consider refinancing your flight school loans through a private lender or credit union to potentially lower your interest rates. Note that refinancing federal student loans may lead to losing benefits such as income-driven repayment plans and loan forgiveness.
3. Prioritize high-interest loans: If you're juggling both federal and private loans, focus on aggressively paying down the loans with the highest interest rates first while continuing to make minimum payments on others.
4. Utilize windfalls: Any unexpected income, such as tax refunds, raises, or gifts, should be partially allocated towards paying down your flight school loans faster.

Most students are likely to be able to get lower interest rates with federal loans, which are set by the government, do not require a credit check, and are the same for all borrowers. Most private lenders determine your student loan interest rates based largely on your credit score and financial history. A creditworthy cosigner could help you get a lower rate on a private student loan for flight school.