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Just in case there are any former Silver State Helicopters students still reading this site and for those considering borrowing to finance their flight training here's some info on "student loans":





For those who got screwed by SSH be aware, you may have leverage to negotiate with your lender because there is a good chance your loan may not qualify as an "education loan":




Q: Is every type of education debt so hard to discharge in bankruptcy?


A: No. Most, but not all, student loans will require proof of undue hardship in order to discharge in bankruptcy. You may be able to avoid this higher standard if you can show that your loans are not really “educational loans” as defined by the Bankruptcy Code. For example, the standard does not apply to payments for tuition or room and board if you did not receive an extension of credit. Also, the higher standard applies only if you went to an “eligible educational institution.” That means an institution that is eligible to participate in one of the government student financial assistance programs. Most, but not all, schools fit this category. You should consult a lawyer for more information about whether your loans meet these definitions.


More detail on this exception:



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Perusing the claims filed by the students with the Silver State bankruptcy court is heartbreaking. Many of these folks have loans of $70,000 with interest rates of more than 15%. That's payments of over $1,200 a month...$14,000 a year right off the top of their paychecks. If they are making pre-tax $50k a year $21k is for loan payments.


What is the alternative to filing personal bankruptcy?


One claim was from a father who co-signed for his son. The guy took the money from an equity line on his house. And the son just signed up last October...it is likely that the SSH insiders knew at that time the company was not going to survive*. He likely won't get anything back from the bankruptcy and he probably wouldn't get a discharge in bankruptcy so he is stuck making payments. Every month writing a check and remembering that he was conned.


*Why might the SSH management have known the company was on the rocks. Because the CFO was leasing 5 aircraft to SSH through a company he co-owned with another SSH employee. That company sold off three of those aircraft in the latter part of last year and early this year...the last one closed the day after the bankruptcy filing. I appears the rats may have been deserting the sinking ship!

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