How to Get a Student Loan After Bankruptcy

Bankruptcy relieves debtors who are unable to pay their creditors by lessening or eliminating their debt load. Previously bankrupt individuals have difficulty getting loans, including student loans. Post-bankruptcy student loans are obtainable depending on the type of loan you seek and the type of bankruptcy you filed.

Instructions

1. Talk with the financial aid adviser at the school you want to attend and explain your financial history. The adviser might know of certain loan programs or lenders to fit your needs.

2. Determine whether you have any outstanding student loans that are delinquent or otherwise in default. If so, contact the lender or current loan holder and set up a repayment plan that leaves you eligible for new loans.

3. Seek out federal student loans. Bankruptcy will generally not impact one's eligibility for federal loans, provided that no current student loans are in default or otherwise unpaid.

4. Consider private student loans. These lenders are not required to be as forgiving as the federal government when it comes to loaning money despite past bankruptcy. Be prepared to explain the circumstances behind your bankruptcy and to convince the lender why you are now a good risk, despite your previous financial difficulties.

Tips & Warnings

• If a student loan was discharged in bankruptcy after the borrower defaulted, it is no longer considered in default. The borrower need not set up a repayment plan with the lender before applying for subsequent federal student loans.

• If a parent filed bankruptcy, it should not impact the child's eligibility for student loans unless the parent is required to co-sign a new loan.