Qualify for student loan post BK?

Discussion in 'Credit Talk' started by marci, May 25, 2001.

  1. marci

    marci Well-Known Member

    Hi all,

    I have a question please. A friend is considering filing BK within the next few months. He would like to attend graduate school in a few years, and wonders whether a BK on his credit report will prevent him from access to Title IV or any other kind of government based student loan funding.

    Has anyone here ever gotten Title IV student loans after a recent bankruptcy?

    Thanks in advance,
  2. NanaC

    NanaC Well-Known Member

    I have a student loan post bankruptcy. Not a problem as long as your student loans are not in default!
  3. marci

    marci Well-Known Member

    Thanks, NanaC, for your response.

    That is what I figured would be the case, although I am having a bit of a challenge finding the "written proof" at relevant SFA/DOE websites.
  4. NanaC

    NanaC Well-Known Member

    It's not a problem at all. They don't even ask!

    It's great!! :)
  5. FeliceRodo

    FeliceRodo Well-Known Member

    You'll notice, however, on your Student Aid Report there is a box where it states "Active Bankruptcy" or something to that effect. They don't ask, but they do look for bankruptcy. Probably to check out student loan debt.

    I do know you can't be denied a student load unless you have a drug conviction. Hope this helps.
  6. NanaC

    NanaC Well-Known Member

    I believe that this only applies if your student loan is actively included in your chapter 13 bankruptcy and then you can't get the student loan. (I had this situation once upon a time) However, if it is a chapter 7 bankruptcy or a dismissed/discharged chapter 13, it is not a problem. And, it is not a question on your application.
  7. marci

    marci Well-Known Member


    Thanks. You're right. I finally did find the documentation wrt BK at the Student Financial Aid website for institutions.

    If a BK is active, they want to see if you have any student loans that are included. My friend won't include his current ones in his BK, so he should be okay for future funding. Thanks again for your answer, though.

    Yikes, re the drug convictions...

    I don't think that bodes well for a 20-25 year old with a prior drug conviction (i.e. even as simple as possesion) not EVER being able to get a student loan in hopes of turning his/her life around. Whatever happened to giving ex-convicts a second chance?

  8. FeliceRodo

    FeliceRodo Well-Known Member

    I am so sorry if you are talking about yourself and the drug conviction. It's really bs that the government is trying to protect people from themselves, and then the bastards turn around and stop a person in that situation from IMPROVING his or her life with education loans, which are a necessity of getting an education.

    Btw, I don't believe anyone can include student loans in a bk. They used to be able, I don't think so anymore. I could be wrong.
  9. NanaC

    NanaC Well-Known Member

    Funny, I was just looking up info on student loan cancellations for teaching in a shortage area or low economic area, and I had just read this info like 20 minutes ago. It says they can be cancelled in bankruptcy "in some circumstances."

    However, on the chapter 13, they included it in mine but I was still responsible for the full balance. It just meant that they were paid by my trustee. When I finished the 13, I just picked up the payments again for the balance.
  10. FeliceRodo

    FeliceRodo Well-Known Member

    That's interesting info. Thanks.
  11. NanaC

    NanaC Well-Known Member

  12. marci

    marci Well-Known Member


    No, I wasn't referring to myself.

    I've never used any drugs, and have only had a half glass of beer and a half glass of wine in my entire life. Scouts honor. :) Thankfully, that is a vice myself and my immediate family have been spared from.

    My family and I do a lot of urban ministry and I know a LOT of people who screwed up when young. They are trying everything to lead a legit life and better their outlooks but they are also poorer than a country mouse. They NEED government help in order to get an education which would lead to a better job, which would lead to less drug-related crime, etc...

    Policies like the one you described above shoot a lot of people in the foot before they really have a chance to get started in life.

    I suppose a Republican administration is responsible for this statute. I vote Republican, but I wish they'd start living out the compassionate conservatism they keep talking about.


    Sorry to get off-topic,
  13. NanaC

    NanaC Well-Known Member

    It's so wierd we are talking about this...a radio station here yesterday had a big discussion about whether they would be honest on the drug question when applying for financial aid. Wierd...

    raspberries...<-said that for myself, not for any other purpose...but I feel better now! teehee>
  14. FeliceRodo

    FeliceRodo Well-Known Member

    I don't know if a Republican administration or Democratic congress pushed all this on students. I thought Clinton pushed through the drug conviction legislation through a Repub Congress. So they are both to blame.

    I vote the man. I really have lost faith in the whole process. People will have to get better and responsible otherwise we will lose this country. Not much, I know, but that's my two cents.
  15. bigboy

    bigboy Guest

    Is Our Children Learning?

    As I understand it, the guidelines for denying financial aid to convicted drug offenders were in place throughout most of the Clinton administration but were never enforced. Bush, being the "compassionate conservative" that he is, wants to enforce them of course.

    Bush believes that an honest answer to the question regarding drug convictions should be mandatory for financial aid applicants, and apparently voluntary for the President of the United States. Indeed, he expects others to answer a question that he himself continues to refuse to answer. (I'm referring to his cocaine and alcohol habit, neither of which were ever a secret here in Texas, both of which he refuses to comment on.)

    Speaking of "strategery", I offer you the following poem in honor the National Poetry Month. These are actual quotes from Bush, arranged for aesthetic purposes by Washington Post writer Richard Thompson. Enjoy! :)
    - by George W. Bush
    - - - - - - - - - - - - - - - - - - - - - - -
    - I think we all agree, the past is over.
    - This is still a dangerous world.
    - It's a world of madmen and uncertainty and potential mental losses.
    - Rarely is the question asked
    - Is our children learning?
    - Will the highways of the Internet become more few?
    - How many hands have I shaked?
    - They misunderestimate me.
    - I am a pitbull on the pantleg of opportunity.
    - I know that the human being and the fish can coexist.
    - Families is where our nation finds hope, where our wings take dream.
    - Put food on your family!
    - Knock down the tollbooth!
    - Vulcanize Society!
    - Make the pie higher! Make the pie higher!
  16. marci

    marci Well-Known Member

    Re: Is Our Children Learning?


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