Tue, Jul 07, 2009
Deplorable Flight School Failures Draw Legal Attention
The recession has
brought many tales of woe from the days of easy credit. Just as
many people were nonchalant about taking on big debts to buy homes
or cars, some aspiring airline pilots took out huge student loans
to get flight training from companies which then disappeared.
But unlike home mortgages and car loans, bankruptcy doesn't wipe
out student loans. The New York Times reports that flight students
victimized by ponzi-like flight school operations have turned to
the courts to try and get out from under.
Silver State Helicopters, which appeared to rely on an
ever-expanding pool of new students to provide instruction work for
its own graduates, is a famous example. But the Times reports that
others, notably the
Tab Express flight school in Deland, Florida, took their
students on a similar downward spiral.
Ed Roe, who says he was stranded with $122K in student loans when
Tab closed, said that the school promised students their loans
could be worked off flying for Tab's own airline. Now, Roe has
joined with about 50 other students to sue KeyBank, which issued
the loans. Tab has also sued the bank, saying its shutdown was
forced by KeyBanks refusal of new student loans.
KeyBank has also sued Tab. You get the idea....
If the name KeyBank rings a bell...that's the same institution that
issued student loans to many of the 2-thousand-500 or so students
stiffed by Silver State Helicopters for as much as 70 thousand
dollars each.
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