Trustee won't allow student loans!

[MajorMike]

I just completed my Associates degree and want to go on to complete my Bachelors which will take about 3 1/2 years part time. I switched schools and the new school I want to go to which has the degree in which I want needed a letter from the trustee in order to allow student loans to cover tuition ( permission from trustee ). So, the school sent a letter saying I had $5500 available for the 1st semester which starts on January 14th and requested permission from the trustee to allow it. My tuition is $1700 per class. I'm taking 3 classes plus books are $250 so this works out perfectly.
Well, today I get a letter from my trustee pretty much saying he cannot give me permission to take out any student loans because I'll graduate before the 13 is paid off and I won't be able to afford the loans ( which according to schedules, I wont...but my attorney was very generous with allowances so I have a lot of wiggle room ).
He said in the letter that he is sorry he can't help, but that it wouldn't be in the best interest for the success in completion of my 13. I was FLOORED!! So, he is saying I can't go to school to better myself to make more money so I can get out of this rut....and now I'll need to wait another 2 years to complete my degree. Unreal!!!! I completely understand where he is coming from, but I thought student loans werent an issue in a Chapter 13!???

[StartingOver08]

MajorMike, have you thought about getting other funds other than loans to finish your schooling. There are lots of scholarships available - and you do not have to have straight A's to qualify. Many grants do not require a particular GPA - they are there to help the student get through school. There are all types of grants that you do not have to pay back. It takes some work to put together enough funds, but it is possible and you will have the added benefit of not having that school debt weigh you down after you graduate.

My eldest daughter did this for her last two years - she graduates this Spring. Her total debt upon graduation will be $1200. That's it. She did a wonderful job of cobbeling together many small grants to pay for her education. Try it. This might be an opportunity for you rather than a set back!

[MajorMike]

I wish I could get a scholarship or grant. I make too much money and have already checked into that. I can only get Stafford because I don't qualify for Private Loans either. Straight A's isnt the problem. I have a 3.8 gradepoint. What kinds of grants did she get and how did she do it? I think my income may have something to do with me not getting any.

[Tbornetun]

That really sucks. Why would the school even know about the BK in the first place? Anyway, sorry to hear your trouble with this, don't give up. Start at the financial aid office of your school and ask what grants and scholarships are available directly throught the school.

Then try this site: http://www.scholarships.com/ There are quite a few scholarships to browse through, you may find something.

Good Luck!

[MajorMike]

School knows because the government knows when you've taken them before so you are flagged immediately. The thing is, my last school didn't require trustee permission, but this one does....Thank you for your help

[MJJ3767]

Mike, I have sent you a private message.

[DUMBAGAIN]

OH this is not good. My job wants me to go to school and they will pay part, but I was going to have to take out loans for the rest. !! I'm so sorry for you. I hope something can be worked out.

[MJJ3767]

I am confused. You said you have 3 and a half years to go to complete your degree.
(42 months) You have 43 months left of payments on your Chapter 13. Payments for student loans don't start until 6 months after you graduate. At that point you will be 5 months post Chapter 13. I don't understand why the trustee is not allowing this. I would think this would be a HUGE PLUS for the trustee to see you have plans POST Chapter 13 to better your life and financial situation by getting your degree.

And thanks for your info on students loans earlier. I have decided to forget about students loans next semester and borrow my tuition from a family member.

[BigJohn]

I am confused. You said you have 3 and a half years to go to complete your degree.
(42 months) You have 43 months left of payments on your Chapter 13. Payments for student loans don't start until 6 months after you graduate. At that point you will be 5 months post Chapter 13. I don't understand why the trustee is not allowing this. I would think this would be a HUGE PLUS for the trustee to see you have plans POST Chapter 13 to better your life and financial situation by getting your degree.

And thanks for your info on students loans earlier. I have decided to forget about students loans next semester and borrow my tuition from a family member.

Good point. I think all MajorMike needs to do is show the trustee the math and the matter might end up being approved.

[MajorMike]

Also student loans are in deferrment until after BK is discharged. The problem he is having is the fact that I will have more debt when I'm done with the discharge, but I feel a student loan debt is an investment in my future. He feels I shouldn't take on anymore debt. But does he really expect me to pay cash for my education even when I'm out of BK?? That isn't possible with my tuition being $18,000 a year!