66 East Main Street, 3rd Floor Little Falls, NJ 07424

Student Loans Can Be Discharged – Flight Course Debts Flew Right out the Window

Share on facebook
Share on linkedin

As I have detailed in the past, student loans can be discharged in bankruptcy, but on a case-by-case basis.

In a recent case, the bankruptcy court ruled that the Debtor’s student loan was discharged.


  • Debtor enrolled in Wings of Cascade Flight School
  • Debtor borrowed money from Key Education to finance his education.
  • Key Education was a for-profit lender.
  • Debtor eventually withdrew from the flight school.
  • Debtor filed for Chapter 7 relief from his debts.
  • Debtor owed $120,105 to Key Education.


  • Key Bank was not an “eligible educational institution”; and was not covered by the Section of the Bankruptcy code that is non-dischargeable in bankruptcy.
  • Debtor’s loan from Key Education was included in his bankruptcy and he did not have to pay this loan.
  • Debtor did not learn how to fly but his debt flew right out the window……

As always, it is important to have an experienced Bankruptcy attorney review your case so you can achieve your financial objectives.