Bankruptcy or flight school Loan discharge chances? Any experience?
Posted by One-Pressure1615@reddit | flying | View on Reddit | 31 comments
If anyone wants yet another private loan horror story stay tuned. But I am looking for advice, mainly experience, concerning my options.
to keep it brief. I took out a large private loan from Meritize to fund flight training up front. it was years ago, I know it was incredibly stupid. I was promised in writing that the amount would cover everything to ATP, no matter what. Took out the loan and started.
A few years in I get hit with the medical bullshit. After getting my instrument I have to stop flying for anxiety. That was the last time I flew.
The school was aware of my attempts to get my first class SI. They said it was no issue. etc etc. repeated assurances, I was told to not even look at the flight receipts for costs as it didn’t matter. They would make sure I got all my training.
Fast forward and I hear through a third party that the school sold. It was part 61. Can’t get into contact with the old owners. New owners say I pretty much don’t exist for them. so my remaining funds are gone. I was not provided the service I paid for. and the school got Meritize to disburse my entire loan.
I don’t want to pay 200k+ for something I didn’t get. My only two options seem to be bankruptcy or somehow going after Meritize. There is a notice in the contract mentioning the holder of the loan can be held responsible for the actions of the service provider.
I was wondering if anyone has been able to get one of the lenders to have to shuck the loan due to the services failing to provide a service you paid for.
Or if anyone knows what my chances are at bankruptcy liquidating the loan.
Any help is appreciated. Would rather not have to leave the country and live as a hermit in the woods.
Bardammew@reddit
Did this happen to be at a flight school in Georgia near Atlanta?
theinspireddesigner@reddit
Have you googled to find out if there are any class action lawsuits against the school? You can't be the only one who got screwed. You can also petition the dept of education to have your student loans forgiven. In the meantime, tell any debt collectors that youre filing for bankruptcy and they'll back off calling. I believe theyre legally bound to do so. Itll buy you some time to get this sorted. This school used predatory tactics to get you to borrow as much as possible. You have options.
Guysmiley777@reddit
This was a private loan through Meritize, not a federally backed student loan.
ltcterry@reddit
I don’t think Meritize is a student loan.
Flavor_Nukes@reddit
The banks won't discharge the loan, theyve held up their end of the bargain.
You're likely sueing the school for your money
One-Pressure1615@reddit (OP)
There is a holder notice in the contract that allows me to hold them responsible for the failures of the school.
Flavor_Nukes@reddit
Lawyer up. Someone owes you money
One-Pressure1615@reddit (OP)
For sure. Lawyers that handle this are difficult to find sadly. I’m working on it though.
YokeMeDaddy@reddit
File a complaint with the CFPB as well. May not do anything, it may also light a fire under them to help you.
One-Pressure1615@reddit (OP)
It’s something I’m looking into, but will probably wait until I have a lawyer before sending anything like that.
Civil_Guava2803@reddit
Was it the anxiety diagnosis or the drugs that you were put on that made you quit flying? This could be a factor moving forward
mrivc211@reddit
This could be an issue if he tries to sue anyone. The burden to get his medical is on him. Not anyone else. These loans clearly state a medical is required to be obtained prior to training so not sure how he got the money before the medical. Unless he was issued a medical then it was rescinded
One-Pressure1615@reddit (OP)
My loan doesn’t state that at all. And I did have a medical, it was rescinded.
EliteEthos@reddit
Umm… you should be suing the school, unless you signed some contract with them stating they could do what they did.
One-Pressure1615@reddit (OP)
The new school did not receive any of my money. The old owners are the ones who cashed it out. Even if I could win a lawsuit against them I likely wouldn’t see any of it.
Aggressive_Light_173@reddit
I mean, from what they said, it sounds like the school is gone, I don't think there's an entity left to sue
EliteEthos@reddit
School sold. Old owners knew OPs situation. New owners cashed out the loan. Seems like the school is still around…
bhalter80@reddit
More importantly the assets of the school sold not the legal entity itself
Aggressive_Light_173@reddit
https://www.tateesq.com/learn/ftc-holder-rule-student-loans
I'm so sorry, I would hate to be in this situation, I hope you're able to get it worked out. I'd look at this link though, since you mentioned the holder clause I think you might be able to get Meritize to cover what you didn't spend at your flight school.
One-Pressure1615@reddit (OP)
Maybe. I appreciate that link!
Spirit_of_No_Face@reddit
Holy balls… sorry this happened op, respect for sharing! 🫡
Redfish680@reddit
Lawyer.
TxAggieMike@reddit
u/raisetheded … this might be worth adding to your collection in your often quoted avoid loans post.
RaiseTheDed@reddit
Already done
uktrucker1@reddit
can we add this to the pinned thread?
OnionDart@reddit
I’d be curious to see your full employment history. 20 bucks there’s no jobs outside of aviation on there.
ReadyplayerParzival1@reddit
Now we shouldn’t shame anyone for making poor financial sessions. But this should be a valuable lesson for anyone trying to finance flight school. Too many variables to go wrong.
LearningT0Fly@reddit
In terms of bankruptcy, I don't see why this loan would be treated any differently to any other private loan.
The rest of it? I don't know enough about that all to speak to.
YOURE_GONNA_HATE_ME@reddit
Student loans are treated different and can’t be discharged like a mortgage or a car loan. There’s no collateral as you can’t repossess information in someone’s brain
Guysmiley777@reddit
Holy balls. This post is a case study in "why to not take out a giant loan for an accelerated training program". Like it was crafted in a laboratory.
I would put money on the Meritize contract being boilerplate solid. You could try going after the school owners but that's likely a dead end as flight schools can and do disappear in a cloud of debt and vanished student prepayments.
rFlyingTower@reddit
This is a copy of the original post body for posterity:
If anyone wants yet another private loan horror story stay tuned. But I am looking for advice, mainly experience, concerning my options.
to keep it brief. I took out a large private loan from Meritize to fund flight training up front. it was years ago, I know it was incredibly stupid. I was promised in writing that the amount would cover everything to ATP, no matter what. Took out the loan and started.
A few years in I get hit with the medical bullshit. After getting my instrument I have to stop flying for anxiety. That was the last time I flew.
The school was aware of my attempts to get my first class SI. They said it was no issue. etc etc. repeated assurances, I was told to not even look at the flight receipts for costs as it didn’t matter. They would make sure I got all my training.
Fast forward and I hear through a third party that the school sold. It was part 61. Can’t get into contact with the old owners. New owners say I pretty much don’t exist for them. so my remaining funds are gone. I was not provided the service I paid for. and the school got Meritize to disburse my entire loan.
I don’t want to pay 200k+ for something I didn’t get. My only two options seem to be bankruptcy or somehow going after Meritize. There is a notice in the contract mentioning the holder of the loan can be held responsible for the actions of the service provider.
I was wondering if anyone has been able to get one of the lenders to have to shuck the loan due to the services failing to provide a service you paid for.
Or if anyone knows what my chances are at bankruptcy liquidating the loan.
Any help is appreciated. Would rather not have to leave the country and live as a hermit in the woods.
Please downvote this comment until it collapses.
Questions about this comment? Please see this wiki post before contacting the mods.
I am a bot, and this action was performed automatically. If you have any questions, please contact the mods of this subreddit.