Lender in Silver State Helicopters flight-school debacle to forgive loans

A student-loan operator will forgive $112.8 million in loans to some 2,300 flight students of Silver State Helicopters, including dozens who studied at the now-bankrupt flight school’s Utah locations.

The students, who were saddled with staggering debt with little training to show for it, will have up to 75 percent of their debt to Student Loan Xpress, a subsidiary of CIT Group, erased under the agreement reached between the company and 12 states’ attorneys general.

"Silver State students’ dreams were grounded when the school failed to deliver on their education and left a trail of costly loans in their wake," said Francine Giani, executive director of the Utah Department of Commerce, in announcing the agreement Tuesday.

"We do not regulate lenders but we so appreciate the role a lot of people played in pulling this lender into these discussions. They are doing the right thing," she added. "This occurred at a time when money was being thrown around and not watched as closely as is should have been. It’s a good conclusion for the young people left holding the bag."

By Brian Maffly

The Salt Lake Tribune

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