Counting the cost

So how does an 18-year-old fresh from high school afford $100,000? Self-funding? Yes it is still possible for a young guy or gal to work a couple of jobs in order to put themselves through a CPL, but that it is hard work. One has to admire these people.

Mum and Dad? A few are fortunate to have parents willing and with the means to fund junior the full or partial cost of flight training on the basis that the money spent could be considered the equivalent of sending him or her to uni.

Scholarships? There are a few around for the hard-working such as those awarded by the Australian Women Pilots Association and the occasional aero club.

But most start-out pilots will need a loan of some sort. Some will come from within the family, again for part or all of the training costs, and there may or may not be interest to be paid.

But increasingly common in recent years is a federal government scheme that can fund part or all flight training costs for the CPL – VET FEE HELP, part of the Higher Educational Loan Program (HELP). In aviation the monies advanced for the VET (Vocational education and training)fee are for Diploma and Advanced Diploma qualifications as part of the CPL tuition fees. Under the 2016-2017 federal budget the maximum amount that can be obtained under VET fee HELP is $99,389, a sum that does not include monies for accommodation or study books.

But like all things that involve government there is a catch! The money borrowed has to be paid back with interest. After all the budding aviator is getting a loan from the taxpayer. The same monies can be borrowed in order to become a doctor or dentist. The interest on the monies borrowed is 20 per cent, and the borrower has to start paying back the loaned money when they reach a salary of $54,869.

Now the fun starts. The flying school is happy as it is assured of a constant flow of (government) money for the flight training of the subject student. It can sell flight training with the spiel that when trainee pilots make the airlines they will be getting big bucks and can then pay back their loan – ‘Train now, pay later!’.

But the question here is when will the trainee be flying for an airline and be making those big bucks? Not every trainee will go on to complete the CPL or get a well-paid flying job. But regardless, the monies borrowed have to be paid back. At present the airlines are not taking on bulk numbers of low-time new pilots and with the current economy and the shrinking of the mining boom and the transport of miners there are pilots going back down the advancement ladder. All this means that it can be hard for a new CPL to get a job.

How do you get a job without experience, how do you get experience without a job? When you know the answer please advise this column.

Commercial pilots dedicate themselves to their training and as a result often do not marry until into their late 20s or early 30s. Then, at a critical time of life, come considerations of a mortgage, kids and car – all this at a time when the pilot is still climbing the salary tree and there is the loan to be paid back.

Some flight schools are painfully aware of all of the above and as a result decline to get involved in VET FEE HELP. Other flight schools will actively promote the VET FEE HELP to prospective flight students but seldom talk about the negative aspects of the scheme. Indeed, some flight schools seem to exist on the monies from VET FEE HELP.

VET FEE HELP can assist budding pilots achieve their dream, but they should have a serious look at the repayment of the loan and how many jobs are available for newly qualified CPLs before taking that leap.

Contact Dave by email: [email protected]

Like all things that involve government there is a catch!