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.

FMI: www.key.com