Financing Flight Training
Having a solid financial plan before you start training is extremely important. If you have to start, stop, and re-start training to figure out finances, you’ll drive your overall training cost significantly higher.
You’re not alone if you’re struggling to figure out how to finance your flight training. In fact, it’s the most common question I get every day. While I’m not a financial expert, and this post should be taken as general guidance, I’ll break down the most common financing options.
Financing Flight Training Is Tough
Before we get started, here are the types of financing you’ll find for flight training. You may use one, or more typically, a combination of the following:
Personal Finances
Federal Student Loans
Private Student Loans
Private Personal Loans
Flight School Loans
Scholarships and Grants
GI Bill Military Benefits
Financing works differently for student pilots than almost any other career path. You have extremely high upfront training costs, followed by a lull of income during time building, which then steadily increases as you begin your career. That can make financial planning a challenge, so you’re not alone. There’s essentially no way around the high upfront cost. Spacing out your training (and thus what you’re paying a flight school) often exacerbates the problem because you need to fly consistently to excel. Training, taking a break, spending money to knock the rust off, and repeating the process is a bad financial plan.
Flight training in the United States is slowly creeping towards a European model, where airlines themselves are heavily invested in funding primary training… In exchange for a work commitment of course. We aren’t there yet, and training models like this come with hefty service requirements, limiting your career flexibility. Planning and funding is almost entirely placed on individual students in the United States. As airlines feel the squeeze of fewer available pilots, this may change. So keep your eyes out for new programs; this is changing by the month.
If you’re hoping to become a commercial pilot, starting with zero flight time and training through receiving your flight instructor certificates will cost anywhere from $70,000-$90,000. Of course, this depends on the school you choose and your personal progress (extra flight hours add up, big time). To help plan the finances associated with your new career, here’s a highly simplified example of what a typical pilot might experience from the day they start training through the first couple years of flying as a regional airline pilot. Using the fastest programs, it will take 2-3 years from day one until you’re qualified to fly for an airline (and make substantial income to pay back loans).
Initial Career Finances (Non-College)
Financing Options
Federal Student Loans should be your first stop. You might think of federal student loans in terms of paying tuition, but if flight training is a part of your education, they can be applied there too. Federal student loans often carry low interest rates and generally have more flexible repayment options. With potential loan forgiveness and deferment options, they’re most likely to protect you financially. The only catch? Flight schools that accept federal student loans are usually tied to higher education. You’ll have to find out if the school is accredited and accepts FAFSA. Collegiate aviation programs are one of the most typical places you’ll find students using federal aid to finance flight training.
Private Student Loans have more specific repayment terms than federal loans and higher credit requirements. If you can’t meet the credit requirements, you’ll need a cosigner. They usually have the next-lowest interest rates in comparison to FAFSA. These loans are typically used in the collegiate training environment. Since standalone flight schools are considered trade schools, you’ll have to see if this loan can be applied to your standalone flight school.
Private Personal Loans can be flexibly applied to a variety of flight schools. To avoid astonishingly high interest rates, you’ll need a top-notch credit score or a cosigner with one. Your repayment obligations are typically much sooner with these loans. Until you begin flying professionally, you may not bring in much income as you build flight time. Keep that in mind when you consider the timing of your loan obligation.
Flight School Loans… Some flight schools and financial organizations create loans specifically for flight students. The payment plans are timed based on the career trajectory of a typical pilot. Sallie Mae is one example available at numerous schools around the country. Click here to see an example of how this lender times student loans to match your income progression as you begin flying.
Cosigned Loans… Not everyone has an amazing credit history or a family member willing to cosign your hefty loan. With such large financial commitments, finding a loan big enough to cover flight training can be tough. Fortunately, a few flight schools have worked with their lending partners to become your cosigner or remove the cosigning requirement altogether. The American Airlines Cadet Academy was one of the first to do this a few years ago, guaranteeing that applicants accepted into the program can start training regardless of their financial background. As the world needs more pilots, the financial barriers to training are being reduced. Keep in mind that your interest rates will be higher if you don’t have the financial backing to sign for the loan yourself or have the loan cosigned.
Scholarships and Grants are available in flight schools, colleges, industry organizations, and the government. Many universities have large endowments dedicated to flight student scholarships, which are only available once you’re a current student. Depending on how severe your financial need is, you may qualify for Pell Grants through your FAFSA application. These grants don’t have to be paid back by the student.
Here are a few industry organizations with annual scholarship campaigns for student pilots:
Aircraft Owners and Pilots Association (AOPA)
Experimental Aviation Association (EAA)
National Gay Pilots Association (NGPA)
Women in Aviation International (WAI)
Latino Pilots Association (LPA)
Organization of Black Aerospace Professionals (OBAP)
Professional Asian Pilots Association (PAPA)
Sisters of the Skies (SOS)
University Aviation Association (UAA)
LeRoy W. Homer Jr. Scholarships
AAero Scholarship
Amelia Earhart Memorial Scholarships & Awards
The Ninety-Nines
Veteran Benefits
The GI Bill provides financial benefits to military veterans and their families. Click here to read eligibility requirements directly from the Department of Veterans Affairs.
Your payment depends on 3 factors:
Your level of eligibility (you’re eligible for a certain percentage of benefits up to 100% based on how long you served on active duty after September 10, 2001), and
How much entitlement you have left for school or training under the Post-9/11 GI Bill, and
The program and type of school you’re enrolled in
If you’re enrolled in:
A degree program that consists of flight training at a public college or university, we’ll pay for up to the full in-state cost of tuition and fees (depending on your level of eligibility and remaining entitlement). You may also receive a monthly housing allowance and money to help buy books and supplies.
A degree program that consists of flight training at a private college or university, we’ll pay for the net cost of tuition and fees up to a yearly limit (depending on your level of eligibility and remaining entitlement). You may also receive a housing allowance and money to help buy books and supplies. You can also apply for additional funds to cover tuition and fees above the yearly limit through the Yellow Ribbon Program. Learn more about the Yellow Ribbon Program.
A vocational program at a stand-alone Part 141 pilot school, we’ll pay for the net cost of training up to a yearly limit (depending on your level of eligibility and remaining entitlement). You won’t be eligible for a housing allowance or money to help buy books and supplies.
If you’re still struggling to finance your career, a military career is an honorable option.
In exchange for a lengthy service commitment, you can join the military to kickstart your aviation career for free. If your end goal is somewhere in civilian aviation, this is the longest path of them all. As of 2023, it’s roughly 2 years of flight training followed by a 10-year service commitment. Some will say free financing isn’t a good reason to join the military, but that’s not a reality for many Americans. Thousands of people have dedicated a big part of their life to the military in exchange for receiving some form of financial or career incentive. There’s nothing wrong with that, as long as you have the right attitude towards serving your country in the armed forces.
The flying you’ll be able to do in the military is unmatched by anything the civilian world can offer. I flew with the US Air Force Thunderbirds to produce a video detailing the steps it takes to become an Air Force pilot. If you’re struggling with financing your dream career, this could be a great option for you.
