Climb Credit announced the launch of its new financing and payment technology solution for aviation training, to support flight schools and their students who are interested in becoming commercial pilots. The current labor shortage in the industry, paired with the impending retirements of many pilots, is projected to lead to a need of 130,000 new pilots in the next 20 years.
Aviation training programs across the country are working to meet the needs of this shortage. However, many students have struggled to start training due to the tuition cost required to attend aviation training programs. Commercial pilot programs can have high tuition prices compared to other career training, simply due to the cost of operation — like maintaining a fleet of planes and paying for fuel. At the same time, these programs can lead to great career and salary outcomes for their students. According to the Bureau of Labor Statistics, the median airline and commercial pilot salary in 2020 was $130,440. Unfortunately, there are few accessible financial aid options available for their students —creating a barrier to career transformation.
"Aviation schools have an uphill battle to try to meet the labor force demands," said Monica Meadows, founder and CEO of 2MQ Consulting — a business operations and productivity consulting firm for aviation training programs. "Operating an aviation school is very costly, and programs need to have tuition amounts up-front in order to be able to function and train pilots well. It can be a huge challenge when there are limited financial aid options for students that also deliver up-front tuition to schools."
Climb's financial offering for these programs consists of an initial 12-month full deferment of payments, so students don't have to pay anything while they are in class and gaining their flight hours, followed by an additional 14-year term for students to pay back the full amount of the loan. Climb's technology and data dashboard allows schools to better understand which payment methods are being used most for various programs, so they can make adjustments and meet the needs of their students.
"Our products are aimed at helping students attend programs that are likely to pay them back in the form of a strong and stable salary and career," said Angela (Ceresnie) Prince, CEO of Climb Credit. "With the huge need for pilots in the coming years, and the strong salary potential that this career offers, we were excited to build a financial product to specifically meet the needs of future pilots and the schools that train them."
The repayment period on Climb's product can help students manage their monthly payments early in their career, and then fully pay off the loan as their salaries mature and grow. Students are also able to pre-pay at any time without penalty.
