Jet University, Inc did something pretty sneaky right in front of us and we did not pick up on it at the time. Remember when Jet University used to advertise student loans on their website? Most Jet University students are enrolled with guaranteed student loans.
There's just one slight problem...........
None of those loans are supposed to be used at Jet University. Jet University could not qualify as an educational institution that was stable enough for guaranteed student loans.
Mr. Heath Cohen, the President of Jet University, Inc made a special arrangement to solve this loan issue. He didn't tell us this on his website. Rather he instructed his "pilot recruiting department" to not tell the students until after they had been hooked. Then the fraud began.
Mr. Cohen made a "deal" with The SIM CENTER in Miami to be the "front man" for Jet University. The loan applications were made out to the SIM CENTER. SIM CENTER received the checks. SIM CENTER took a small cut ($1200) and passed the balance onto Jet University, Inc.
I understand that he also made a similar deal with other flight schools in addition to the SIM CENTER. He once told me that he made a deal with a flight school in Chicago, to be the front man, and they kept the money and would not turn it over to Jet U! The name of this flight school was Northwestern Aviation, Inc in Schaumburg, IL. Northwestern Aviation, Inc was introduced to Heath Cohen by Art Spengler, the jovial aircraft salesman at Premier Aviation.
Front man loan deals were also made with Professional Flight Training at KFXE (who later cancelled after they saw what was going on) as well as Aero Services in Miami (who would not go along with the "Jet U Deal" for very long).
Jet University could not qualify for education loan status and they should not have received any proceeds from these types of loans. Now Wachovia is on the hook for $70,000 per student. The person that keeps all of the student loan records as well as the contracts is Barbara Botti. (see EMPLOYEE page)
The Wachovia Student loans were guaranteed by The Education Resources Institute (TERi). Teri is a non profit organization that guarantees student loans. The designation of "non profit organization" would normally make these loans non-dischargable if you were to file bankruptcy.
However, TERI itself filed Bankruptcy in April of 2008. A link to the story is here:
So what this means is that TERI no longer guarantees your Jet University Student loan and Wachovia is 100% on the hook for it. That also means that since this student loan is not guaranteed by a non profit organization that it *****MIGHT***** be dischargeable in a personal bankruptcy filing. You will need to check with your attorney on this if you decide explore this route. Please also see the STUDENT LOAN BANKRUPTCY page.