Useful information, cross posted from the FlyChallenger forum:

You can do this online by going to:
http://tinyurl.com/2yrjw2 or just go to http://faa.gov and follow the menus.

If your old paper license had your social security number on it, there's no
charge at all, otherwise there's a very small charge for the new license.

Ed

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
On Behalf Of Jim
Sent: Sunday, October 19, 2008 6:18 AM
To: [EMAIL PROTECTED]
Subject: FlyChallenger: Re: Paper Pilot License Replacement

It's true, Mike,
Pilots need to upgrade to a plastic pilot certificate by March 31, 
2010. This date is based on the 2 years after effective rule date.
And it's easy, like the other posters mentioned. 4 to 6 weeks if by 
mail, 6 to 10 days online. $2 if you just request a replacement, free 
if you are requesting removal of SSAN. 
Special notes about it, they will not put your original paper date of 
issue on the new one. It also states that you do not have to destroy 
the old one if you want to save it as a momento, just that you can not 
use it for flying.
Live long and Prosper,
Jim

Here is part of the long referance from the FAA:
Federal Register: February 28, 2008
[Page 10662-10668]

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 47, 61, 63, and 65
[Docket No. FAA-2006-26714; Amendment Nos. 47-28, 61-118, 63-36, and
65-51]

RIN 2120-AI43
Drug Enforcement Assistance 

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.
SUMMARY: The FAA is implementing changes to its airmen certification 
and aircraft registration requirements. Two years after this rule 
becomes effective, paper pilot certificates may no longer be used to 
exercise piloting privileges. Five years after this rule becomes 
effective, certain other paper airmen certificates, such as those of 
flight engineers and mechanics, may no longer be used to exercise the 
privileges authorized by those certificates. 

--- In [EMAIL PROTECTED], "Mike" <[EMAIL PROTECTED]> 
wrote:
>
> I don't know how true this is but a fellow in our EAA chapter said 
that 
> a FAA dude at Oshkosh told him that pilots need to replace their old 
> paper licenses with the new "credit card" style (with the magnetic 
> strip on the back).
> 
> I don't really believe it is that urgent, but it only cost me a 
couple 
> of bucks and a brief request letter.  My paper license was getting a 
> little tattered anyway.  Plus the new license no longer includes your 
> Social Security number.
> 
> Mike


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