Many, but not all, former Silver State Helicopter students have had their student loans forgiven in the wake of the 2008 bankruptcy and liquidation of what was then the largest civil helicopter school in the U.S. However, Cleveland-based KeyBank did not offer loan forgiveness, prompting 100 former students to sue, charging that the bank knew of Silver State’s precarious financial condition when it offered them high-interest-rate loans of up to $70,000 to attend the school. Arguments in the case were heard late last year by the Ninth Circuit U.S.
Students of the now-defunct training school Silver State Helicopters are suing KeyBank, one of the banks that financed their tuition, charging that it engaged in fraudulent loan practices and was an active participant in a Ponzi scheme concocted by Silver State executives. Silver State filed Chapter 7 liquidation bankruptcy on February 3.