Bankruptcy & student loans after BK

[student123]

I'm a full time grad student with about 27,000 in credit card debt. I can't keep up with the minimum payments, especially since they doubled in the past few months. I have already met with a BK lawyer and he suggested that I file Chapter 7. I have a question, however that the lawyer couldn't give me a clear cut answer. I'm in grad school for the next 3 years. Will I have problems obtaining either government student loans or private student loans after I file? I'm a wreck about this. Would love any advice.

[Minnymouth]

Yes, it will be very hard to get a student loan during bankruptcy and right out of bankruptcy.......
Quite possible you could do it easier with a co-signer to guarantee payment.

Unfortunately, that is how it is.

[SinkingFast]

Our neighbor where we lived went thru this recently with 2 kids. They are very credit worthy. High income. No BK.

The parents had to sign on every student loan the kids got regarless. Each time, the parents were agreeing to stand good for at least 40% of the debt incurred by their kids.

I wonder if we'll be able to cosign to qualify son for student loans or not for the fall since we're filing BK soon.

[Minnymouth]

SinkingFast,
That's a hard question to answer, and I would probably think they would say NO. Unless the BK is over, discharged, and you are debt free by that time. Also the income level would have to be adequate to cover payments on the loan if son couldn't make them....

Stranger things have happened though, they might accept you as a co-signer no questions asked. Especially if you are a property owner.

Good Luck

[keepmine]

A real good place to get an answer is the student loan forum at www.creditboards.com

[Armmick9]

There is a a great thread under Chapter 13 forum called....Apply for Student loan while on Ch 13?

I think that will answer your questions...

Hope it helps!!

[Graphic]

Federal student loans aren't credit based. The only loans that are credit based are the ones that are private loan companies. Fill out the "FAFSA" .... www.fafsa.ed.gov or go to your financial aid office.

[SinkingFast]

Federal student loans aren't credit based. The only loans that are credit based are the ones that are private loan companies. Fill out the "FAFSA" .... www.fafsa.ed.gov or go to your financial aid office.

I just did that!! For son. Filled out the FAFSA.

Our State filing deadline was MARCH 10TH!!!

Unreal. Most other States at least wait until near or after tax day, but not here.

TY for the info, Graphic!! It's nice to know he might be able to get some money for next school year.

[Minnymouth]

SinkingFast,

Here's hoping you son can get that loan......

Been too, too many years since I was involved in student loans............ things have changed a lot in the lst XXXX years.........lol.

Keep us posted, and here's hoping!!!

[Graphic]

Trust me he can get something. If anything he will get a unsubsidized loan which (is in his name) and they give you a certain amount per year according to what year student he is (freshmen...soph..etc)

Grad students get it too. My cousin just got 10k for this year. Mostly helps pay his rent and all too. I got about 12k .... law school of course.

Once you fill the fafsa out they send it to whichever schools you wanted it to go to.. so get your son to go to the financial aid office and one of the counselors will sit down and tell him what is best for him. They know things and stuff we never would. Hopefully he will get grants because those are the ones you don't have to pay back ;)

[Graphic]

here is a link to what the stafford loan will pay (this is what most students get that have parents who have decent income) ... you could be Bill Gates son and get this still

http://www.staffordloan.com/stafford-loan-info/undergraduate-stafford-loan.php

[SinkingFast]

That's great info, Graphic.

We didn't do the FAFSA last year for a several reasons. Income.

Hubby got a severance pkg and I thought it would look like we made way too much.

We didn't know where we were going and then, poof, Hubby got a job.

Took son a while to decide what to do.

Then it was too late. Son decided in May, and the deadline was in March.

Fortunately, the little 2 year college is cheap and he can handle it with what he makes working. But, that won't be the case when he transfers. I'm sure the tuition will triple, at least, if not more. And then, we'll 3 in school!!

[Graphic]

Well they only ask for your information because he can't file as an independent student unless he was born in 1983 or before. They only want to use it as well for the Parent loan information as well (if oyu wanted to take a school loan out for him)

However, like I said no matter how much your income is it won't effect him getting the Stafford Loan and possibly other little grants and loans. He can FOR SURE get the stafford, question is what the other loans the counselor will say he is available to receive. So just fill it out to the best of your knowledge (even if you haven't filed yet) and get it in before the deadline (june 30) ...school deadlines sometimes are earlier for some of the grants and loans so you have to watch theirs too. (You can get the stafford up to the 30th you just don't wanna wait too long.

Gooooooooooodluck ;) School is too damn expensive!

[SinkingFast]

You'll die when you read what I paid for tuition.

We didn't pay by the hour back then if you went full time. 12 hours or more was full time. So it was flat fee.

$275/semester.

That doesn't even buy one class for son at the cheapy 2 year school he goes to now. UGH!!

[Graphic]

Haha. My undergrad was paid for by scholarship but law school is expensiveeeeeeee. My friend pays 845 an hour though at his school.. (private) and each class = 4 credit hours...I think hes taking 12 this semester

So im sure you can do the math haha .. of course that doesnt include books...extra lab fees etc... living expenses.