Bankruptcy and student loans

[grugan02]

What is the name of your state?NY

My question has to do with student loan and bankruptcy. I may have to file this sept but i wanted to enter grad school in the next year or so. I'll have to take student loans out and I'm wondering if a bankruptcy will hurt my chances at getting loans. Any thoughts?

 

[freespeech]

I know this question is not funny to you but I find it amusing when people are concerned that a potential creditor will hold it against them because they have walk out on previous debt.

You will probably be able to obtain loans but at a VERY high rate of interest. Student loans are real hard to get discharged in BK.

 

[toughluck73]

One can usually get student loans (federally backed loans, Stafford, Perkins, etc.) after bankruptcy so long as you meet the other eligibility requirements for those loans (GPA, drug convictions, not in default on existing student loans etc.). Since student loans are exempted from discharge in bankruptcy, they do not need to be granted based on credit worthiness and therefore are given to those who have filed bankruptcy.

A private lender on the other hand is under no obligation to give you a loan.

The only other thing I must add is that when you do fill out the FAFSA it will be included on there and this information will be passed on to the schools that you send your info to. You may have to fill out additional paper work and/or talk to a financial aid counselor. Also, the interest rate on federally backed loans is set every July 1st, which will go up or down depending on what the fed does. The interest rate (on Stafford, Perkins loans) does not depend on credit worthiness as the previous post suggests.