Student Loan Xpress will forgive nearly $113 million in debt for students who obtained loans to attend a now-bankrupt helicopter training school, under a settlement between the loan provider, Missouri and 11 other states.
Missouri victims will be entitled to more than $2.9 million in student loan forgiveness, state Attorney General Chris Koster said Tuesday.
Silver State Helicopters of Las Vegas began operating in 2002 as a small helicopter pilot training school and ultimately operated 34 flight schools nationwide.
For at least two years, Student Loan Xpress served as the preferred student lender for Silver State Helicopters, providing about $172 million to more than 2,800 students nationwide, Koster’s office said.
Records showed that only a small percentage of students graduated and drop-out rates were exceptionally high, according to Koster’s office.
By 2008, Silver State Helicopters had ceased operations and filed for bankruptcy, leaving students up in the air.
The Missouri Attorney General’s Office received 53 complaints about the school’s bankruptcy and the student loans still owed.
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