The Bankruptcy Code makes it illegal for government agencies to refuse student loans to those who have filed bankruptcy. 11 USC 525(c).
So if you have filed bankruptcy, you are still eligible to receive student loans that are backed by the government (Title IV loans) such as the Stafford Loan.
However, if you want to get a student loan from a private lender, that’s a different matter entirely. The Bankruptcy Code prohibits discrimination only from government agencies, not private lenders.
Therefore, private lenders are under NO obligation to give you a student loan if you have filed bankruptcy or have other credit problems.
This doesn’t mean that you won’t be able to obtain a student loan from a private lender if you have filed bankruptcy. It just means that private lenders are allowed to consider your credit history including bankruptcy filings in evaluating your student loan application.
If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact Dan Nunley today by completing the “Contact Dan” form on the right side of this page. I’ll get back in touch with you as soon as I can to schedule a FREE initial telephone consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
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Dan,
A very important post and great link for people concerned about student loan access after bankruptcy. This is a real nugget for people worried about getting a student loan after bankruptcy.
Thanks for this information. You always seem to help me learn something new every single day.
Steve