Can I still apply for financial aid (loans, grants, etc.) if I have a recent bankruptcy?

See this is the problem, because of massive debt and many times laid off, I declared Ch.7 and still have outstanding student loans (about 30K), but they were in deferment and have never been late. However, after talking to one of my student loan creditors, they said that because of my bankruptcy that my loans, which before were in great standing, have all gone into default. I was told I will have to repay once the bankruptcy is discharged. Does this mean that my student loans are now bad credit as well? How will this affect my ability to receive financial aid if I go on for a master's or a professional degree?

Can I still apply for financial aid (loans, grants, etc.) if I have a recent bankruptcy?

First do not use a private lender if you can get Stafford Loans still. If you truly are in Default (as opposed to delinquent) then you will not be able to get any more student loans until you rehabilitate those. That means you have to make 9 on time payments (over 9 months) to become eligible to borrow more stafford loan funds.

Second. Student loans CAN indeed be discharged by a bankruptcy but they usually are not. The judge can decide whether or not paying the student loans back constitute an undue hardship. If not, then they stay.

Make sure you really are in default. In order to get there you have to blow off 9 months of payments that were due. And if you can prove that you should have had a deferrment and it's the lenders fault for not recording it when other lenders did then that can get you out of default also.

Stafford loans are not based on a credit history but a Financial Aid Administrator CAN refuse to certify the loan if they have a good reason to. A good reason would be something like a student telling the financial aid office %26quot;I'm never going to pay these back%26quot;. Bankruptcy by itself is NOT a good reason.

And by the way, if you don't get the loans discharged in the banruptcy, you WILL end up paying them back though wage garnishment or your tax returns being kept by the government for the rest of your life so you might as well make it easier on yourself and pay them back on time and avoid the interest and late fees.

Baron

Can I still apply for financial aid (loans, grants, etc.) if I have a recent bankruptcy?

yo did your lawyer advise you.....i think you are just thinking about bankrutcy

Can I still apply for financial aid (loans, grants, etc.) if I have a recent bankruptcy?

You will still be able to get federal student loans as long as you are not defaulted on any past student loans. Private student loans are given based on your credit history and I doubt you would qualify for one with a bankruptcy on your credit report.

That being said, filing bankruptcy does not effect current student loans at all... you are required to pay them back even after you file bankruptcy. (even if you list them as debt in the bankruptcy you still have to pay them back) If they were in deferment before the bankruptcy, then you prob still are but eventually (or perhaps even now if you haven't been paying on them since the bankruptcy) that deferment period will expire and you again will are required to pay on them.

If you do not or have not been making the required payments since the deferment expired, you will eventually go into default and yes, not be eligible to receive additional student loans.

Sorry.