Can you get student loans after a Bankruptcy

caycc · May 25, 2008

We all know the consequences of bankruptcy, but the question was can she get into school because she is going to file for bankruptcy! My reply was, yes, it is possible because I did!

Marysjrfan · May 25, 2008

We all know the consequences of bankruptcy, but the question was can she get into school because she is going to file for bankruptcy! My reply was, yes, it is possible because I did!

This poster is right. Bankruptcy will not keep you out of school A couple of us were simply mentioning the Stafford loans as an alternative to private loans because private loans go by your credit rating where Stafford loans don't.

katchup · May 25, 2008

well put THANK YOU!!

justme1972 · May 25, 2008

We all know the consequences of bankruptcy, but the question was can she get into school because she is going to file for bankruptcy! My reply was, yes, it is possible because I did!

Your situation isn't even close...you filed for it 4 YEARS ago when you applied for student loans. That is not even remotely close to filing for it a couple of months ago.

There is a difference between "bad" credit and "catastrophically destroyed credit."...and that is what a recent bankruptcy does.

If someone has a bankrtupcy and has good re-established credit, then after so many years it's a non-issue...even if it appears on your credit report.

TIME and good payments is what creates your credit score. That is why after 4 years, you were able to get the loan...you would have been able to qualify for about any other loan as well, such as a car, house, etc..at premium rates.

The way banks look at it, is you have money RIGHT NOW you can't pay back...so why are they going to loan you more money?

You are missing the point here...it's not just the bankrtupcy issue, it's the fact she wants to file for it right now.

If I were her, I would just not pay the bills before I would file for a bankruptcy...that way you don't have the bankruptcy on your credit. Apply for the loans, and then file for bankruptcy on the credit cards once you are done with school.

I just don't want to see this girl get half-way through school and then be forced to take out private loans b/c she can't get anymore gov't loans.

sarita07 · May 25, 2008

No doubt you can because I did,,, almost immediately. But you cannot have defaulted on any other student loan you had previously, that is what they look at and student loans are not excused in a bankruptcy. Luckily ours was a business bankruptcy and we were able to keep our house, car, etc.

Good luck

Sarita

sarita07 · May 25, 2008

I see why you are not a business man anymore, ha!

MotivatedOne · May 25, 2008

Submit your FAFSA early. You should qualify for grants with no problem at all. Also, the school you choose to go to may have loans that they don't use your credit score to approve you for. Good Luck!!!

I am a single mom of 16 month old twin girls with no support at all. I may have to file bankruptcy and am worried that I would not qualify for any student loans to go to nursing school. Anyone have any info about that.

AtomicWoman · May 25, 2008

If I were her, I would just not pay the bills before I would file for a bankruptcy...that way you don't have the bankruptcy on your credit.

This is not true. If she just doesn't pay the bills, she will either have write-offs on her credit report (VERY bad, in a league with bankruptcy) or she will have many records on her report that say she paid, 30, 60, 90 or more days late. That's not going to look any better than bankruptcy.

The best advice would be for the OP to talk to someone knowledgeable about bankruptcy laws. Then she can know what she's getting into. Then she can talk to the financial aid officer(s) at the school she wants to attend.

As for the Stafford Loan, you won't be denied for having a bankruptcy, but forget about private loans, as others have said. Especially these days, having good credit is essential to get a private loan. Although a really good (credit-wise) co-signer might be able to make that problem go away.

caycc · May 26, 2008

Yes, I filed for bankruptcy four years ago, and I was approved for the Pell Grant AND a student loan on March 6 of this year. I have not built up my credit as I am still driving the same car and have been renting an apartment for the last 4 years. I have no credit cards. So how could I have built up my credit? I am just wanting anyone out there who has been through the same thing that I have been through, don't give up, fill out the FAFSA and go to your school's Financial Aid Officer and speak with him/her. Thanks to their help, I am attending school next week. Good luck to everyone out there.

Marysjrfan · May 26, 2008

Yes, I filed for bankruptcy four years ago, and I was approved for the Pell Grant AND a student loan on March 6 of this year. I have not built up my credit as I am still driving the same car and have been renting an apartment for the last 4 years. I have no credit cards. So how could I have built up my credit? I am just wanting anyone out there who has been through the same thing that I have been through, don't give up, fill out the FAFSA and go to your school's Financial Aid Officer and speak with him/her. Thanks to their help, I am attending school next week. Good luck to everyone out there.

Exactly. Nobody has to believe what we say here. Verify it with Financial Aid...they'll tell you. Several of us have been successful at getting the Stafford loans with a poor credit history. Your finncial aid officer at your school would be the best one to tell you what your chances are, given yor individual situation.

caycc · May 26, 2008

Thanks, Maryjrfan!

Marysjrfan · May 26, 2008

Thanks, Maryjrfan!

No problem. I'll back someone who is right any day of the week.