Financial Aid after Bankruptcy - Fugghetaboutit?

[LadyOfTheSith]

I realize this may be a rather obvious question but having looked through the forum, I haven't spotted a post with this specific topic.

As you can guess I'm curious as to the feasibility/possibility of getting any kind of loans with a bankruptcy on my record (3 years ago).

1 - My impression is that private loans will be basically unavailable, given my recent credit history ( I do have a potential cosigner but she's carrying large amounts of student debt herself so I'm not sure this would be a viable option ).

2 - I'm told that obtaining some federal student loans and aid is a possibility.

Can anyone please confirm if the points above are generally correct?

On a side note...

Hypothetically speaking, if federal loans are available to me then would the loans be solely usable for tuition costs at my nominal school or could they also go towards living expenses in part?

Thanks...

[pig floyd]

2 - I'm told that obtaining some federal student loans and aid is a possibility.

Can anyone please confirm if the points above are generally correct?

On a side note...

Hypothetically speaking, if federal loans are available to me then would the loans be solely usable for tuition costs at my nominal school or could they also go towards living expenses in part?

Thanks...

My federal loans were initially declined this year because of a reporting error by one of my accounts that was quickly resolved.  They sent me this...

"In general terms, you cannot have any accounts that are 90 days past due, no accounts in collection or default, no bankruptcy (chapters 7, 11, or 12), no foreclosures, repossessions, wage garnishments, or tax liens in the last five years."

It went on to say, "You may also be able to apply with an endorser."

All I can say is try, see what happens. 

[Ender Wiggin]

Talk to your state's bar association, because bad credit is one of the reasons that they would deny you membership to the bar.  (The theory is that if you can't handle your own money, they don't want you handling the money of others.) 

If the bar is ok with it, and you are able to get loans, you can borrow more than the cost of tuition (the extra is to cover some living expenses, since you have to quit your job).

[Tetris]

I hate money and credit. Hate. I sympathize with you.

Your best bet may be to find a cosigner. To get the federal loans. Also, if your numbers are good and everything, you may be able to get a scholarship and/or need based grants (not dependent on numbers) in addition to your Stafford loans of $20,000 that, to the best of my knowledge, you don't need a credit check for (I think... not sure on this).

As far as the bar goes, just make sure you have a good argument for why you went bankrupt and stay out of financial trouble in law school! It'll be 6 years behind you at that point and you can make the argument that you're squeaky clean.

[amise]

My experience with bankruptcy is slightly different, but perhaps explaining my situation will help you. 

First of all, I'm in my senior year of UG, so I can only explain how bankruptcy affects UG financial aid and loans (I will soon find out how it affects me in law school).  So, my mother declared bankruptcy about 4 years ago before I was enrolled at Penn.  She was the only person in my life who, prior to the bankruptcy, would be willing or able to cosign a loan for me.  After the bankruptcy, she was no longer allowed to cosign any private loans and at the time I did not have sufficient credit history to qualify for private loans without a cosigner.  In addition to not qualifying for private loans through banks, I was unable to get Parent Plus loans (UG equivalent of Grad Plus loans?). 

Because I was ineligible for Plus loans, I qualified for a higher amount in Stafford loans (almost double the eligibility of most undergrads) because I was treated as an independent. I also spoke with financial aid advisers at Penn and was able to qualify for Penn guaranteed loans which are generally for a low amount guaranteed to me by the institution without a cosigner (I'm not sure if there is an equivalent to this loan at all schools).  I was also able to convert my work study grants to a loans (no cosigner needed). I also spent a lot of time bitching to financial aid advisors and writing letters explaining my situation, and this led to Penn increasing my grants so that they covered about 2/3 of my tuition.

I hope this helps you a little bit.

 

[amise]

Oh and I also qualified for Federal Perkins loans (one of the perks of coming from a low income family dealing with bankruptcy)