How to Apply for a Student Loan if My Parents Filed Bankruptcy
Bankruptcy makes obtaining loans difficult for any family, but students attempting to get financial aid for college are in luck. Most types of aid are not affected by parental bankruptcy. Parent PLUS loans are affected, but parents, not students, apply for that type of loan. Most federal loans are judged on the student's grades, class enrollment and year in school. Some private loans will be affected by bankruptcy but only if the student's parents apply as cosigners.
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Instructions
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Fill out your Free Application for Federal Student Aid at fafsa.ed.gov. If you are over 24, married or in graduate school, you do not need your parents' information, only your W-2s or income tax return. If that is not the case, use your parents' W-2s or tax returns to answer the questions on the FAFSA.
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Enter school codes when prompted. The site also allows you to search for the school code, if necessary. Sign and transmit your FAFSA online. Your college will send you an award letter.
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Read your award letter and accept the loans you're offered. Stafford loans are offered to low-income students, regardless of parents' bankruptcy status.
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Make an appointment with your financial aid counselor. Often times, you're eligible for more loans than are offered to you. Additional loans can help you pay for room and board, transportation and supplies. Explain that you want to apply for additional federal loans. Sign the forms your counselor gives you.
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Visit a bank to obtain a private loan. Many have programs to loan money to students. Some programs, however, require borrowers to have parents as cosigners. Speak to a bank representative and ask if you can apply for the loan on your own or with a different cosigner, if one is available to you.
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Tips & Warnings
If your parents can get an endorser who has good credit history, they may still be eligible for PLUS loans.
When your parents are denied a PLUS loan, you are eligible to receive unsubsidized Stafford loans.
