Aircraft Australia Finance is designed to enable students to achieve their flight training goals earlier than they would if they had to save up for tuition fees. We have teamed up with Mortgage Choice finance broker, Alistair. We believe that a personal loan can be paid off faster than a VET fee debt. Below we have listed the three types of training for which you can apply for a personal loan plus some repayment comparisons between VET fee and personal loans.
RA Aus
Pilot Certificate-
RAA Pilot Certificate
-
Cross Country Endorsement
-
Passenger Endorsement
PPL
Private Pilot Licence-
Cross Country Endorsement
-
Controlled Airspace Endorsement
-
NVFR *Optional
CPL
Commercial Pilot Licence-
PPL & Endorsements
-
Bob Tait Theory *
-
CPL Examination
VET Student Loan vs Personal Loan
VET Student Loan Scenario
CPL Course Max $75,000 Loan
Approx cost $88,500* ex GST
Shortfall to self fund $13,500 May be staged
+ Loan Fee 20% $15,000
Total Debt $90,000
Total Debt inc indexation of 1.5% if no repayments are made after
8 years $101,384
Average Aviation Salary $48,000
Yearly repayment $4,055 pa (based on 4% voluntary repayment)
Time to repay debt 25+YEARS
Total investment $114,384
*The average cost for VET registered flight schools
Personal Loan
CPL Course Approx cost $63,500 ex GST
Shortfall to self fund $13,500 May be staged
Personal Loan Max $50,000
Interest Rate (indicative) 10.99%*
Loan Term 7 years (84 months)
Repayments $199.94 per week
Total debt to be repaid from personal loan if only the minimum repayments are made $67,179
Total investment $80,179
The Facts
VET Student Loan Scenario
VET Student Loan Facts:
- There is a lifetime limit on VET Student Loan Debt of $100,879.
- There is a 20% loan fee which is added to the balance of the loan but does NOT count towards the VET Student Loan Limit.
- While there is no interest charged, the Student Loan debt is indexed each year “to maintain its real value”, adjusting it in line with changes in the cost of living (as measured by the Consumer Price Index – CPI). The Indexation Rate for 2017 was 1.50% and since 2011 the rate has averaged 2.23% per annum.
- Repayments are calculated on your worldwide taxable income. Repayments commence at an annual income of $54,869, with repayments being 4% of your income, and increasing to 8% of your income for $101,900 & above.
- A VET Student loan is with the Australian Government and will take precedence over any other debt. i.e. if you apply for a home loan and have an outstanding Vet debt it will be taken into account in your application.
Personal Loan
Personal Loan Facts:
- Credit approval is based on your existing circumstances
- Regular repayments & defined loan term
- Additional repayments may be allowed so you can repay sooner
Where do I Begin?
To enquire about eligibility for loans and to ask any questions, please email Alistair at alistair.mcnee
** Interest rate indicated is based on Advertised Fixed Personal Loan rate as at 04/10/17. Actual interest rate will depend the borrower’s specific individual circumstances & are subject to lender’s assessment.
Advice disclaimer: The information provided above is for general education purposed only and does not constitute specialist advice. Because of this, you should consider the appropriateness of the advice to your situation, before taking any action.
All training at Air Queensland is based on competency of the pilot and not on hours of tuition. A student will only receive their certificate or licence if they have passed all tests and the Instructor deems their flying to be satisfactory. All pricing for completion of course costs is an estimation only. Finance is provided by a third party provider and Air Queensland takes no responsibility for advice given in relation to financial products supplied by the provider.