JEFFERSON CITY, Mo. (CN) – Student Loan Xpress will forgive $112.7 million in debt to students who attended a now-bankrupt helicopter school. The agreement settles a 12-state class action and concludes an 18-month investigation of Silver State Helicopters.
Missouri victims will receive more than $2.9 million in loan forgiveness.
Silver State Helicopters operated 34 flight schools throughout the country and Student Loan Xpress was its preferred student lender. Silver State closed in 2008, leaving most of its students owing Student Loan Xpress substantial amounts of money for training and certification they never received.
Student Loan Xpress must forgive up to 75 percent of the amount borrowed by most Silver State students. The percentage will be based upon the number of flight certifications each student earned.
Student Loan Xpress is also prohibited from providing any negative credit information to credit agencies about the settling students, and is required, when acting as a preferred lender to a nonaccredited school or institution, to provide written disclosures to each prospective student borrower that the loan does not constitute an endorsement of the school or of the quality of education offered.