student loan dilemma. HELP

[myfirstbk]

Hi fellas, i'm getting ready to file my chapter 7 bk, but i have questions regarding my student loan acct.

I'm still attending school, and still need the funds... now I know I have to include my student loan as part of my creditors... so... what would happen to my student loan?

I'm still on forberance right now, since i'm not done with school yet...

please advise.

Thanks

ps: my head has been spinning all week trying to finalized my paper work.

[HHM]

Nothing should happen, but seriously, you should explore other options before filing BK if you are still in school. Do you at least have a plan of how you are going to pay all your expenses without incuring new debt after the BK?

[Flaminblonde]

I'm not an expert at this by far, but if they are federal loans, they are not dischargeable, and nothing will happen. Since you won't be paying on these loans for a while, it won't matter. Also when they give you the loans, it's not based on credit...it's based on need.

Now if they are private student loans, they should discharge. If they are not backed by a govt entity on them.

Anyone?? If I'm wrong, PLEASE, advise. THis is the information that I have read on. I am still in school and all of my loans are federally backed. So I know they won't discharge, but I haven't heard anything else or read anything else on how they won't continue my loans because of bankruptcy.

Hope that helps.

[myfirstbk]

I really don't want to file for bankruptcy, but my mom is getting older and she needs help with rent. So that means i'm not able to fulfill my bills and debt.

my student loan is from citibank, under Student federal subz. loans...

i'm going through a mental breakdown.

[Flaminblonde]

I found this info. THis is for Federal Student Loans...not private.

Texas Bankruptcy Lawyers on Student Loans
11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act. In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to charge-off in a pending case.

Generally speaking, a bankruptcy should have no impact on eligibility for federal student aid.

Title IV grant or loan aid (including the Perkins loan program) may not be denied to a student who has filed bankruptcy solely on the basis of the bankruptcy determination. Financial aid administrators are precluded from citing bankruptcy as evidence of an unwillingness to repay student loans. Schools may nevertheless continue to consider the student's post-bankruptcy credit history in determining willingness to repay the loan.

If you have declared bankruptcy you may still receive financial aid. Bankruptcy does not affect financial aid.

[myfirstbk]

Thank you.