will I be able to get a loan for school if I have had to file bankruptcy?

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I lost my job 3 years back, and was then dropped by my insurance company, so ultimately I had to file for bankruptcy.

I am getting ready to go back to school (once I get in of course) and worry I won't be able to pay for it through the traditional loans that you all have talked about.

Has anyone been in my yicky shoes? :eek:

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federal student loans are not based upon credit ratings - privet ones are.

if you already have a bachelors degree in something else - that will limit the kinds of federal student loans that you'll be able to get.

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My husband lost his job way back when and we filed for bankrupcy and 3 years later I started going to school. Like the above poster said, I don't think they look at your credit. Good luck!

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Specializes in ER/ICU/STICU.

I believe it will matter with the private loans. After a bankruptcy your credit rating is much improved, but usually the loan applications ask if you have ever filed and the bankruptcy does show up on your credit report. I think it just depends on who the loan is through and most likely the private loans will charge you a higher interest rate.

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Specializes in Emergency Dept. Trauma. Pediatrics.
I believe it will matter with the private loans. After a bankruptcy your credit rating is much improved, but usually the loan applications ask if you have ever filed and the bankruptcy does show up on your credit report. I think it just depends on who the loan is through and most likely the private loans will charge you a higher interest rate.

Not sure where you are getting this information from??? Your credit score drops after a BK. It can take 7-11 years for that to be dismissed (sometimes you have to petition it for them to get on the ball and remove it and the length of time varies on the type of BK filed) and it doesn't look good on your credit at all. I worked in the credit bureau dept. of a major financial institution and never was someones credit rating improved after a BK.

To the OP though, it will matter if it's a private loan. Federally funded loans it shouldn't be an issue. (if you qualify for them based on past education). Private loans they will look at many factors and how long ago it was. Also, things that used to look really bad 5+ years ago, are factored a little differently now, or considerations are made. When all the home loans went bust and the economy tanked many people found themselves in BK and Repossession. A lot more then the norm. A lot of financial institutions take that into consideration. (during that time frame)

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Specializes in ER/ICU/STICU.
Not sure where you are getting this information from??? Your credit score drops after a BK. It can take 7-11 years for that to be dismissed (sometimes you have to petition it for them to get on the ball and remove it and the length of time varies on the type of BK filed) and it doesn't look good on your credit at all. I worked in the credit bureau dept. of a major financial institution and never was someones credit rating improved after a BK.

To the OP though, it will matter if it's a private loan. Federally funded loans it shouldn't be an issue. (if you qualify for them based on past education). Private loans they will look at many factors and how long ago it was. Also, things that used to look really bad 5+ years ago, are factored a little differently now, or considerations are made. When all the home loans went bust and the economy tanked many people found themselves in BK and Repossession. A lot more then the norm. A lot of financial institutions take that into consideration. (during that time frame)

Let me clarify. It depends on the individual. Yes your credit score drops initially but how much depends on your original score and the type of debt they have. If your credit score was low prior to no then the drop isn't that much. Yes it does stay on your credit report and doesn't look good but it doesn't keep your score down as long as the no is on your credit report. You can absolutely rebuild your credit and raise your score after. After 3 years if the OP has kept the debt off and stayed current and ontime with the debt they have then most likely the OP's score has improved. Maybe not 800 but higher then when bk was filed.There are different things that comprise your credit score. It always depends on what debt was eliminated and what were reaffirmed such as home or auto loans. Bankruptcy does make it more difficult to secure credit but it does not give you a low score for the

Entire 10 years.

As far as student loans go, lenders may be more willing to lend to people with bk on record because most student loans are non-dischargeable in bk now.

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Specializes in ICU.
federal student loans are not based upon credit ratings - privet ones are.

if you already have a bachelors degree in something else - that will limit the kinds of federal student loans that you'll be able to get.

Having a bachelor's degree does not limit the kinds of federal student loans one can get.

Having a bachelor's degree does make a student ineligible for grants.

Loans =/= grants.

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Specializes in Emergency Dept. Trauma. Pediatrics.
Let me clarify. It depends on the individual. Yes your credit score drops initially but how much depends on your original score and the type of debt they have. If your credit score was low prior to no then the drop isn't that much. Yes it does stay on your credit report and doesn't look good but it doesn't keep your score down as long as the no is on your credit report. You can absolutely rebuild your credit and raise your score after. After 3 years if the OP has kept the debt off and stayed current and ontime with the debt they have then most likely the OP's score has improved. Maybe not 800 but higher then when bk was filed.There are different things that comprise your credit score. It always depends on what debt was eliminated and what were reaffirmed such as home or auto loans. Bankruptcy does make it more difficult to secure credit but it does not give you a low score for the

Entire 10 years.

As far as student loans go, lenders may be more willing to lend to people with bk on record because most student loans are non-dischargeable in bk now.

Yes I understand how it all works, as I said, I worked in the CB dept. But initially your post made it sound as if you file for a BK and your credit score improves, I didn't want people to get the idea that this is true. It takes time and work and more time.

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for private loans, try to have a stellar record for at least 6 months. Pay everything on time! also, look into getting a co-signer

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I cannot thank you guys for all of your input!

It truly helps to get different perspectives from everyone, especially now!

I am meeting with the finance department today (of the school that I hope to get into!) and will keep everyone posted on what happens.

THANK YOU GUYS FOR EVERYTHING!! :nurse:

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Having a bachelor's degree does not limit the kinds of federal student loans one can get.

Having a bachelor's degree does make a student ineligible for grants.

Loans =/= grants.

I think what the poster meant was that if one already has a degree (and got loans to pay for it) they are limited in how much federal money they can borrow for another undergrad degree. Going through this right now myself. There is a lifetime undergraduate limit for federal student loans of around 57K.

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Thank you so much for the clarification.

Yes, I currently do have an undergrad degree and took out loans for it...I think about 15K, so perhaps that plus another loan or two will cover the 45K for nursing school. :p

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