Future Student Loans in Chapter 7

[newlife2007]

Gang :

We are about to pull the trigger and file Chapter 7 within the next month.

One important question that we have & have not got Clarification from a Lawyer :
How will a joint Chapter 7 filing ( Myself & Wife ) affect the possibility of our daughter getting any student loans in the future. She is currently a Sophmore in high School and will be looking for financial help for college in a few years. My guess is two years from now we may or may not be able to cosign.

Thanks !!

[HHM]

For standard, federally backed, student loans (Stafford etc), your credit is not going to matter.

[Runnin on empty]

Hi newlife!

HHM is correct, with the Federal Stafford Subsidized (interest deferred while student is in school) and Unsubsidized (interest accrues while student is in school) do not require a credit check of any kind, they are given on a "needs" basis.

I am actually returning to school next month to pursue my MS and have been told that I was awarded both Sub and Unsub loans. Of course I'm going to take a little of the Subsidized loans.

One caveat though. If your daughter's cost of schooling (per year) is more than her financial awards (Pell Grant/State award (if any - it varies from state to state)/scholarships/Federal Stafford loans), you may need to take out a parent loan, or she may need to take out another loan from a non-governmental entity. Those will probably be credit-based. You will have to look at everything and decide which is best, IF it comes to that.

Just have her concentrate on her studies, it will all fall into place when the time comes. Once she decides on her school, get to know the financial aid office very well. They are a treasure-trove of information, and will help you with the ins-and-outs.

[newlife2007]

Thanks Guys ... I was hopefull that this would work for us and Not Hurt Her !!