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

If you dream of flying a plane as a commercial pilot, you can see the world from a new vantage point and earn a solid salary. The median pay for airline and commercial pilots in 2023 was $171,210 per year, according to the Bureau of Labor Statistics.

However, you need to get an Airline Transport Pilot (ATP) certificate first. Per ATP Flight School, the cost of flight school can set you back $116,995 if you're starting with no experience. To cover costs, you can look into flight school loans and other options for financing your pilot training.

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 up front. 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 may be an option to cover the cost of flight school. But only if the school is accredited, participates in Title IV financial aid programs, and offers an eligible degree or certificate program.

For example:

• 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

You can check the Department of Education's accreditation database to see if your school might qualify for federal financial aid.

Here are the different federal student loan options and interest rates available for the 2024-25 academic year:

To qualify for federal student aid, you must meet the basic eligibility requirements. For example, you must be a U.S. citizen or eligible noncitizen, have a valid Social Security number, enroll in an eligible degree program at a qualifying school, and maintain satisfactory academic progress.

Some federal student loans, such as Direct Subsidized and Unsubsidized Loans, have loan limits. First-year dependent undergraduate students can borrow up to $5,500 in these loans, and independent students can borrow up to $9,500.

However, in both cases, borrowers can only have up to $3,500 in Direct Subsidized Loans. Undergraduate students must demonstrate financial need to get Direct Subsidized Loans, which come with an interest subsidy. If you're eligible for federal loans, you need to complete the Free Application for Federal Student Aid (FAFSA) to apply for them.

Unfortunately, many flight schools aren't accredited, as they're typically considered trade schools. Because of that, they're ineligible for federal student loans.

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 not be able 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.”

Current private student loan rates

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.

How to manage flight school debt

Flight school loans can help you fulfill your dream of becoming a pilot. But like other types of loans, you must pay them back. Managing aviation school debt requires a strategy, such as:

• Budget for monthly payments: Once you enter repayment, your available funds each month will change. Adjust your budget to include your monthly payments on flight school loans.
• Look into student loan refinancing: See if you qualify for student loan refinancing with a private lender or credit union. Be aware that it may be tough to find a lender, as you may not have traditional student loans from an eligible degree. If you have federal student loans, calculate the cost savings if you're eligible for a lower interest rate. Though you might save on interest charges, refinancing makes you ineligible for any federal loan benefits, such as access to income-driven repayment (IDR) plans and student loan forgiveness.
• Lower payments with IDR: If your flight school loans are federal, choosing an IDR plan can lower your monthly payments. On IDR plans, you only pay between 5% to 20% of your discretionary income (depending on the plan), so your monthly payments will be more manageable. Additionally, after 10 to 25 years of payments, you may qualify for student loan forgiveness. “To keep the monthly income-driven plan payment as low as possible, maximize your retirement contribution, which will, in turn, lower your adjusted gross income,” says Lynch.
• Prioritize high-interest debt: If you have a mix of federal and private flight school loans, you likely have different interest rates on each loan. Using the debt avalanche strategy, focus on paying off the highest-interest debt while maintaining the minimum monthly payments on other loans.
• Use windfalls: Whenever you get additional funds through a raise, tax refund, or birthday gift, consider putting a portion of it toward your loans for flight school.

“Students should compare flight schools to ensure that they will get the best value and that the school offers what they are seeking,” says Bubb. “If they have aspirations of becoming a commercial pilot, they should talk to commercial pilots to find out how long it will take, and how those pilots went about their training.”