Student Loan for my daughter after chapter 13 discahrge

[anunezal]

I am 12 months away to complete my Chapter 13. My daughter will start college next year. As she will start applying for colleges for next year, I was wondering If I would be able to apply for student's loans for may daughter on my name? If yes, would I be able to apply loans a little bit before the discharge? My last payment will be August 2024. She will start college September 2024. So, very close.

[shipo]

This is a question for your attorney; rules on such things vary by district.

[justbroke]

I agree with shipo. Best to ask your attorney. For what it's worth, my school required an affidavit and other information about my active Chapter 13 before disbursing the loans. The real question for Parent Plus loans is whether the Chapter 13 will be seen as an adverse condition. If you're unable to get Parent Plus loans, then that should allow your daughter to get loans on her own.

[Carmella]

I agree to talk to the attorney because there might be limits to what debt you can take on. We were only allowed $500 each, husband and me.

You are so close to the end it might be better to wait--just is just my personal opinion, not anything legal--from my experience when we bought a car we needed the court/trustee to allow it and had to have the paperwork. Then about 3 months after the BK discharged my husband bought a car we didn't need a thing. It was so refreshing. We told them about our BK, but since it was discharged it was fine. They knew which lenders would be more likely to give us a loan.

If your daughter gets her own loans, you can still help her pay on them and if you can afford it pay after the BK when you no longer have the wage deduction. Obviously, your daughter will be on the hook if they are her loans, and something prevents you from being able to pay. But if you are discharged and moving on with life hopefully you can work it in your budget.

[anunezal]

Thank you for all your feedback. I am not applying while in bankruptcy. My plan is to apply for the loan, right after I get the discharge. I was wondering if I will be able to get a loan after the discharge, or they will denied due to BK 13 in my credit record. Thank you

[justbroke]

It's an interesting spot because I received the loans during and after completion of my Chapter 13 bankruptcy. The school had me complete a form on behalf of the government that my loans would not be discharged (or were not discharged).

The only way to tell is to apply. If they don't like what they see, they may decline you on the spot. I wasn't declined but the school required that affidavit.

https://studentaid.gov/sites/default/files/plus-adverse-credit.pdf

[anunezal]

justbroke thank you, this is a very good information. I will find out once apply Thank you again to all for the feedback

[mh321]

We are almost done with our 13 (8 months to go!). Earlier this year we were concerned about student loans as well as our son was applying to colleges for this fall. We asked our attorney and he had never heard of anyone's child applying for student loans and not getting them during a 13. Ours applied and only asked about our income. When he applied we didn't apply in either myself or my wife's name. He got approved with no issues.

As always, ask your attorney first.

[Carmella]

I did a google search and if it's a Parent Plus Loan then you may be denied because of a recent bankruptcy. One site said for 5 yrs after BK is completed. Maybe you should talk to the financial people at the college and see what your options would be. I read your child might get a higher amount of a loan after you are denied. There's an appeal process, but it doesn't seem like BK discharge would be a reason. There's private lenders who do parent plus loans which might give you a loan.

I would talk to someone at the college regarding financial aid. I would think someone in the financial aid office would have had this question asked before.