Student Loan Issue (TERI)

01CelicaGTS · June 21, 2008

So I was scheduled to start training at Hillsboro Aviation on July 15th. I got my loan approved from Penn Security Bank and Trust through TERI on the TERI website for $75,000. They sent me a letter confirming the dispersment date and everything about a month ago, so I moved to Beaverton Oregon and transferred with my job excited to start school. Well I got a letter yesterday from TERI saying that my loan was reversed and that they are no longer going to approve it. It said that it was not due to my credit but that they are "No longer processing applications for this product". So I called the financial advisor at Hillsboro Aviation (Wayne) and he said that he would call and try to see if I could still get the loan. It turns out that TERI filed for Chapter 11 Bancruptcy in April! So I'm waiting to hear back from Wayne to see what he says. I guess the only other option is to try to get a loan from Wells Fargo. The only other one that works with Hillsboro Aviation is Sallie Mae and they will only give me $20,000. I'm not even sure that Wells Fargo will give me a loan for the full amount either. So hopefully I can figure something out. Has this affected anybody else who has worked with TERI???

C.R.O. · June 22, 2008

Sorry to hear that. I hadn't heard that about Teri, and that's who I did my loan through as well.

I don't have a lot of advice for you, since I wasn't exactly in your shoes, but you may have to do the loan through multiple parties.

captkirkyota · June 22, 2008

Sorry to hear that. I hadn't heard that about Teri, and that's who I did my loan through as well.

I don't have a lot of advice for you, since I wasn't exactly in your shoes, but you may have to do the loan through multiple parties.

So now that they are bankrupt, do you still have to pay your loan???

C.R.O. · June 22, 2008

So now that they are bankrupt, do you still have to pay your loan???

TERI isn't the bank. TERI is, well, basically the middle man in that process.

As far as I understand it, TERI is basically there to help people get loans through different banks. So when I got my loan, I had the choice of several different banks to apply from, through TERI. So even if TERI went out of business, my loan isn't with them.

And as mentioned, they filed Chapter 11, which doesn't mean that they are going to cease to exist. In fact, quite the opposite. Chapter 11 is where the company has the intent to continue business, but reorganize due to it's inability to handle it's current debt.

Likely TERI will continue to operate, although in probably a different manner than they did previously.

Doesn't help 01CelicaGTS any though.

captkirkyota · June 22, 2008

TERI isn't the bank. TERI is, well, basically the middle man in that process.

As far as I understand it, TERI is basically there to help people get loans through different banks. So when I got my loan, I had the choice of several different banks to apply from, through TERI. So even if TERI went out of business, my loan isn't with them.

And as mentioned, they filed Chapter 11, which doesn't mean that they are going to cease to exist. In fact, quite the opposite. Chapter 11 is where the company has the intent to continue business, but reorganize due to it's inability to handle it's current debt.

Likely TERI will continue to operate, although in probably a different manner than they did previously.

Doesn't help 01CelicaGTS any though.

Aah, ok. Thnx.

phlewy · June 27, 2008

I am sorry to hear this as well and hope that you have been able to resolve this by now and can still go by July 15th! C.R.O is correct, they will reorganize and continue business operations, that's why it is good to get Hillsboro involved in this process.

I wish you all the best!

I do have another question I want to ask since I saw your post. I am in the process of getting ready to go to Flight School in September and one of my concerns is actually applying for a loan. Not because of my credit but because of the fact that I do not want to work while I train to fly. In your situation, you said you moved to Beaverton to go to Hillsboro, are you working while training? If you are looking for more than $20k then I assume you want to do all the ratings in as short amount of time as possible and not work?

I am just curious if a company like Saellie Mae will give me a higher interest or lower loan amount because I am not going to be working full time as I am now.

Thanks for your input and again all the best for resolving your loan situation and of course for your Flight Training! I am confident the loan will work out!

Thanks for your time.

01CelicaGTS · June 28, 2008

Yeah I'm going to be trying to work full time while going to school. I looked at Sallie Mae and Wayne at Hillsboro Aviation told me also that they will only go up to $20,000 for their school. That kind of sucks. I'm currently working as a manager at Target and I got a transfer. I'm going to be going through the full program (PPL, Commercial, CFI, Instrument, CFII, and whatever else is offered) and hopefully be done in about a year and a half. I'll keep you posted and let you know how it goes while working. I wouldn't be able to live here if I wasn't working (cost of living is kinda high). The nice thing is that I am on a set schedule at work, so I can schedule my flights with my CFI in advance whenever I'm not working. Another option is that I might just close (230PM-11PM) Sun-Thur at work then I could just go to school in the mornings. And my last option is to get a night job like a bartender or something where I could get tips. I haven't heard back from Wayne yet, but hopefully early next week I will. If not I guess I need to start applying for other loans.

C.R.O. · June 28, 2008

I'm currently working as a manager at Target and I got a transfer. I'm going to be going through the full program (PPL, Commercial, CFI, Instrument, CFII, and whatever else is offered) and hopefully be done in about a year and a half.

You can probably finish a little sooner than that. Wayne also told me to figure about a year and a half, since I would be at school 3-4 days a week (I also still work).

I started in August, and I should have my CFI check ride in the next 2-3 weeks. Instrument and CFII will be done shortly after. So just under 12 months for the entire program, with one of the worst winters and springs I have seen up here weather wise, in the 6 years I have been in the area.

tattooed · June 29, 2008

I have already had an issue with TERi. I am probably not going to have enough $$ to finish the program (CFI training could be out of pocket), so I called TERi to apply for add'l funds. They said they are no longer accepting applications for flight training. I assumed it had to do with SSH.

Hmmmmm. That sucks.

Fortunately, my loan has been handed off to Greater Lakes Educational, and that is who is sending me $$. As far as I know, there is no issue with my loan. (Fingers and toes are crossed).