How Can I Qualify for Student Loans If I've Declared Bankruptcy?
Loosing a job can cause all kinds of problems, including not being able to cover the payments on your debt. If you find yourself in this situation, the final step in fixing your financial issues may be to file Chapter 7 or 11 bankruptcy. Those that have lost their jobs, and are thinking of going back to school to get a job in a different field, might be hesitant to file bankruptcy. You may be under the impression that if you file, you will not be able to get a loan to pay for schooling. This is not necessarily true, and generally, funding is available.
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Things You'll Need
- Driver's license
- Social Security Card
- Past W-2s
- Past income tax returns
- Bank statements
- Free Application for Federal Student Aid (FAFSA) form
Instructions
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Go to the Free Application for Federal Student Aid website, and click on the link to file for federal aid. This application is processed and approved by the government, for financial help to pay for college classes. You should have already decided on a college and have been accepted for enrollment, before submitting the application. You must be enrolled at least part-time in order to qualify.
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Fill out the application. Personal information will be asked, as well as financial information. Have your identification, W-2s and income tax returns, and bank statements nearby, to help with answering questions.
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Answer any bankruptcy questions on the form, honestly. Student loans are not covered under bankruptcy, and generally have to be paid back, even if you file. As long as you have never defaulted on a student loan, your federal financial aid application should be approved. The majority of financial aid loans are backed by the government, so that the banks are not affected, if you default on the loan.
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References
- Photo Credit student image by Vasiliy Koval from Fotolia.com
