ABN AMRO still granting student loans to pilots
- Products and services
ABN AMRO recently made the news because the bank had supposedly stopped granting student loans to pilots. This is incorrect. What is correct is that ABN AMRO – ahead of the deteriorating market conditions and in consultation with flight academies, is more reluctant to finance current and future pilots. Flight academies have been accepting fewer students since 2009.
The job market conditions are tough,especially in the Dutch market. Peter Elders, head of the Pilot Desk: “The Netherlands has a waiting list for graduated pilots. We also saw waiting lists in the years after 9/11 (11 September 2001) and in 2002/2003 during the SARS epidemic. In both cases, the problem solved itself when air transport picked up and the demand for pilots subsequently increased. We’re now seeing that the international market is slowly recovering again. That’s where opportunities lie.”
Elders does not agree that many pilots are experiencing payment difficulties. “Almost 95 percent of pilots who are clients of ABN AMRO meet their payment obligations. That’s an incredibly high percentage: much higher than in other sectors. The bank offers guidance for the small group of clients who face payment difficulties.” ABN AMRO rejects the allegation that it did not meet its duty of care. When aspiring pilots apply for a loan, ABN AMRO draws their attention to the financial risks that come with a loan and that getting a job is not self-evident.
ABN AMRO is currently the sole provider of pilot loans and has been financing pilot training for 25 years.