Will BK affect my ability to get student loans?

[IBKevin]

I am considering BK, being $30k in debt with insuffcient income to even pay my debts. I am one year away from my Bachelor's degree. I want to continue with my MBA immediately afterwards. Will having filed a recent BK affect my ability to get Federal or private school loans for my MBA? I'd hate to not be able to go to school because I filed BK. Thanks.

[Dawn1970]

I think with Federal student loans the only criteria are being a U.S. citizen, choosing a properly accredited school, being in the right income bracket, and not having defaulted on a student loan in the past. Credit should only matter with the private loans. Although many of them are government subsidized, I think they still exercise their right to pick and choose based on credit worthiness.

[Dawn1970]

Update, Kevin:

I just qualified for a Federal Subsidized AND a Federal Unsubsidized loan to go back to school and my Ch 7 was just discharged in late November. I was, of course, turned down for student loans from independent loan companies, which I expected. So I'm sure you will be fine. Apparently credit doesn't matter with federal student loans! :o

[dcj]

Only take what you need

Make sure you only take out the amount you need. It's hard to make the monthly payments if you don't get a "high" paying job.

[Dawn1970]

Yeah, that's good advice. It's real tempting to take out a loan knowing that you don't have to pay it back until 6 months after you graduate. The thing is, I'm already a nurse and can afford to pay at least the interest on my student loans while I seek a better-paying degree. So maybe it won't come back and bite me in the rear too badly. ;)

[Tberry]

Congratulations on being so close to that degree! Once you get it you will feel great! I just graduated from IU in December, and filed for BK in December. I am continuing my MS in Education this Spring, and did not have ANY problems getting a student loan. You should not either. I do was $26,000 in debt, mostly because of my unrelenting efforts to get my degree. I used CC to pay everything. GOOD LUCK TO YOU!!!!! Hope this helps!

[IBKevin]

Wow, thanks for all the great info. I can breathe a sigh of relief now.