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"The Student acknowledges that this Contract is for an educational benefit" ...

Discussion in 'Trucking Schools and CDL Training Forum' started by flguy, Oct 21, 2011.

  1. Oct 21, 2011 #1
    flguy

    flguy Light Load Member

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    I found my old SNI STA (Schneider Training Academy) contract yesterday from 2007.

    Interestingly it contained these words:

    So I tried to locate the relevant law:

    Apparently they are trying to present that this is like a student loan and cannot be cast off in Bankruptcy. Interesting tactic. Does anyone have any information on whether this legal? I know regular student loans have no Statute of Limitations and can be collected for life. Does that apply here.

    I'm very skeptical that this is legitimate and enforceable personally. If it is I imagine other students (Schneider no longer has an STA but other companies might try the same) should be aware of this one.
     
    flguy, Oct 21, 2011
    flguy, Oct 21, 2011
    #1
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  3. Oct 21, 2011 #2
    Meltom

    Meltom Road Train Member

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    My guess is that it would depend on how the STA (or whateve schooling) is set up. If the follow the appropriate guidelines and regulations I'm thinking this would be perfectly legal. Any organization that offers such training would be wise to do their research and make sure they set up their operation in such a way that their services are getting paid, wether or not the person wants to default on their obligation.
     
    Meltom, Oct 21, 2011
    Meltom, Oct 21, 2011
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  4. Oct 21, 2011 #3
    25(2)+2

    25(2)+2 Trucker Forum STAFF Staff Member

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    The contract is legal and binding as long as you signed it. In the event it goes to court, the contract will be viewed as an obligation to make you pay. I don't know that it would be upheld over declaring bankruptcy, but most people wouldn't do that for that amount.

    I met a lady driver for SNI once, about 4 or 5 years ago, who had quit because they wouldn't fix the AC in her truck and kept running her down south. She worked a local job for a few weeks, then got a job shagging at a DC in her home town. The consensus then was that they wouldn't force payback.

    I have a question, did they give you a copy when you signed it, or was it given to you when you completed the required work time?
     
    25(2)+2, Oct 21, 2011
    25(2)+2, Oct 21, 2011
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  5. Oct 21, 2011 #4
    flguy

    flguy Light Load Member

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    It was given when we signed it. But for anyone interested I believe the same contract is still available online here: http://www.schneider.com/www1/groups/public/@marketing-public/documents/webcontent/charlotte_pdf.pdf

    I seriously have my doubts about it being equal to a real student loan. First of all the disclosure really wasn't there. It was just this one sentence which really doesn't specifically mention bankruptcy. I'd be surprised if 95% of students made the association.

    Then I also have real student loans and I know there were things like disclosures, entrance interviews, exit interviews which were required. There was none of this with this.

    If they can successfully make it out to be like a student loan then in my opinion it is very bad because it could mean students are effectively on the hook for life whereas usually in most states the Statute of limitations expires somewhere between 3 and 10 years. Not to mention the dischargeability of the debt under bankruptcy.

    I'm surprised to see that apparently the issue hasn't came up before?
     
    flguy, Oct 21, 2011
    flguy, Oct 21, 2011
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  7. Oct 21, 2011 #5
    flguy

    flguy Light Load Member

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    I think the student should definitely know what they are getting into though if this is the case. Traditional Student Loans are one of very few debts which basically have no Statute of Limitations and cannot reasonably be discharged under a Chapter 7 bankruptcy. Even five year old federal tax debt is more easily discharged than a 25 year old student loan debt.
     
    flguy, Oct 21, 2011
    flguy, Oct 21, 2011
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  8. Oct 21, 2011 #6
    25(2)+2

    25(2)+2 Trucker Forum STAFF Staff Member

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    Most people pay what they are told is owed, I base this on conversations with many a driver over the years. Sni, back in 2006 was fair to my wife,she went home owing a fraction of the total and that was paid.

    Not all are the same way, and some company(ies) may not even give you a copy until you have completed it, meaning all of the requirements. Some people sign these and end up in small claims facing a lawyer and a company representative with a contract which is extremely one sided. No one should sign a contract unless they understand it. Sni was trying to address the possibility of bankruptcy with this wording, but whether or not it would be effective would be up to the court.

    I always figured Sni was one of the better ones, thanks again for the response.
     
    25(2)+2, Oct 21, 2011
    25(2)+2, Oct 21, 2011
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