Student loan elgibility after filing chapter 7?

[walknwounded]

Michigan:

We are considering filing chapter 7 due to large amount of bills. We have fallen drastically behind because I have lost 2 of 3 incomes due to an injury at work. We had no income for 13 days...(have to be off 14 days to be fully compensated). I got paid for a portion of one week, barely.

Anyways, we are in $31,000 in debt in credit cards. We also have $60,000 in student loans which we want to reassure and not default on. We are not in default in anyway on our student loans, right now they are deferred till January 2005 due to financial difficulty.

My question is my husband has a masters, he wishes to become a MD would he still be able to get a student loan for med school with a bankruptcy on his financial record?

We tried to qualify for debt consolidation, but they said we didn't have enough income.

Weary of being a WalknWounded

 

[whoisonfirst]

yes - he can get student loans

Yes - he would definitely be able to get a student loan.

Federal loans do not rely on your credit history.

Private, non-government loans would be a different story, but the types of loans students usually seek (such as subsidized or unsubsidized stafford loans) do not rely on credit scores or history.

Part of the reason this is possible is because government-backed student loans are not dischargeable in bankruptcy.

Hope this helps!

Oh - and you should also know that consolidation loans for student loans often do not rely on credit history, either. So later on, you can still consolidate and save money - like through Sallie Mae, for example.

 

[whoisonfirst]

oh, and ...

And don't get confused by the lending/servicing process for student loans. Though you will see a financial institution listed as the loan provider, as long as the federal government is guaranteeing the loan (like they do for Stafford and PLUS loans, for example), your husband will have no trouble at all getting one. (Unless, of course, his income is too high to qualify, which is probably not the case, given your financial situation.)

So have him fill out his FAFSAs or other forms, and good luck!!!

 

[walknwounded]

Thank you for the help. There seems to be light at the end of this dark tunnel after all. Just keep telling myself..it is temporary!

walknwounded