Students in Florida will have $17 million in loans forgiven by the financial aid company, which served as the preferred student lender for the school for at least two years and loaned about $174 million to 2,300 students across the country. School records show only a small percentage of the 2,700 students graduated and drop out rates were high.
The company had 34 locations nationwide, including schools at Fort Lauderdale Executive Airport, Jacksonville, Lakeland and Melbourne.
In 2008, Silver State had stopped operating and filed for bankruptcy. Most students were left owing Student Loan Xpress for training and certifications they didn't get. The Florida Attorney General's Office received more than 300 complaints about the company's bankruptcy and the student loans still owed.
Student Loan Xpress will forgive 75 percent of the total amount borrowed for most Silver State Helicopters students. The percentage for the remaining students will vary by the amount of training each successfully completed.
The agreement with the loan company should keep negative information about students who did not pay their loans from appearing on credit reports. At other schools where the company is the only private loan provider, it must provide written disclosures to prospective borrowers that say the loans don't constitute an endorsement of the school, its principals or the quality of education or training offered.
