Apply for Student loan while on Ch 13?

[Eeeksthecat]

my wife is returning to school this jan to get her PhD we have had a simular question can she still get a student loan in chap 13?

we are confirmed and all and on a 5 year repayment plan. we were never in default on her student loans to start. hopefuly when she gets her new degree we will earn enough to be finacaly secure.

(shes a special ed teacher and gets paid a higher salery based on education level)

[JGGR]

I don't know if she'll be able to get a student loan. As far as us is concerned, we're going to apply and see what happens. If get approved, great! If not, then we'll have to consider other options. I do want my hsuband to go back to school and finish his bachelor's and then I want to do my Master's... We just want to get out of this situation we're in....

[originalhealer]

Encouraging News

A few days ago, I finally heard back from Citibank, which has serviced all of my prior student loans, but cancelled my Nov 15 disbursement.

They sent me a letter explaining that they cancelled it because I converted to Chap 13 in Nov, but all I have to do is sign and send back the included promissory note, and they will give me the loan. They even said that filing bankruptcy should have no effect on my eligibility for student loans. So, the person who said that their school told them to just sign a new promissory note is correct.

Peace

[coma]

My husband just got approved for a stafford through Citi as well and we're in Chapter 7, so it must be ok.

[Armmick9]

We are Proof!!

Well its official, you can get financial aid while you are in Chapter 13!! Yahoo!! My husband got his loan disbursement today. His original spring semester loans were cancelled but after he called his financial aid office all he had to do was re-sign a promissory note. So there is hope for all of you out there!!

[lostsoul23]

One piece of encouraging news: after I emailed my Trustee asking him what is his purpose, exactly, he emailed me back saying that HE HAD NEVER HEARD OF A BANK CANCELLING A STUDENT LOAN BECAUSE THE PERSON FILED BANKRUPTCY. In fact, I read somewhere online that it is against the bankruptcy code to be turned down for a student loan because you filed bankruptcy. I am not sure if they meant only federal loans, though.

So, now I have to go back to contacting my school and the bank to see if I can get to the bottom of this.

Note sure how much this will help, but, if your student loans are defaulted when you went into it BK, you wouldn't be able to get new loans anyway. BK puts them into automatic "forebarance," meaning they can't collect on the defaulted loans while the case is going on. *However,* if you are in deferred status or forebarance status before you filed, and not defaulted, I'm with the trustee - someone, somewhere is baffled. Federal student loans are the only loans I know of where having bottom-pit credit doesn't matter. If you are in defaulted status and in BK, you can still consolidate them which will get them out of forebarence and make you eligible for funds again.

Good luck.

[originalhealer]

My loans are all on deferment.