Students share in debt agreement
Wednesday, October 28, 2009 10:07 AM PDT
BOISE (AP) — Three dozen former Idaho students from a bankrupt helicopter training school will share in a $112 million debt-relief settlement with lender Student Loan Xpress.
Nationwide, about 2,300 people will benefit.
The Idaho students’ share of the 12-state pact will be $1.5 million, making up 75 percent of the total amount they borrowed from Student Loan Xpress to finance classes at Silver State Helicopters. Eligible students will automatically get this benefit unless they ‘‘opt-out’’ of a pending federal class action case. Silver State operated 34 flight schools, including a location in Boise. By 2008, it had discontinued operations, but many students were left owing Student Loan Xpress a substantial amount of debt for training and certifications they’d paid for but never received, according to the attorney general’s office.
