Going back to school - loans?

[cleanslate01]

Can you get a direct federal student loan while in a Chapter 13? I wanted to go to nursing school and it will cost $8000 a year. If I don't get scholarships or grants for it, I will need to fall back on student loans. I have a small student loan left over from undergrad and am current on it.

Also, if you are awarded a grant/scholarship for nursing school, is that something that is just a wash? I mean, if the school is paying me to attend, that isn't considered "income" or anything like that, is it?! I would think that if you used it 100% for tuition and fees (not living expenses), it should be ok.

[justbroke]

You cannot incur any new debt without permission of the Chapter 13 Trustee. They probably won't allow it unless you're in a 100% plan and/or you can afford it. You can't take money away from your unsecured creditors for this loan.

[cleanslate01]

Well that's just kinda sucky. Hmmmm. I'll have to get as many grants and scholarships as I can, I guess. Not like I can put tuition into our budget!

[Flamingo]

Our daughter obtained Stafford Loans as our dependent during our Chapter 13 and we were advised by our attorney that our BK would work in her favor in getting her government loans. The loans were determined by our status and we included that we were in BK. Most government loans and grants go directly to the school to pay for your tuition. Check with your attorney as to your own personal situation before you proceed with anything because there could be money left over above and beyond payment of your tution and fees which could be sent to you by the school. Just because you are in Chapter 13 doesn't mean you have to stop your education. The IRS has certain guidelines as to reporting grants/scholarships as income - go to irs.gov and review their publication on that subject.

[detroit9]

Our Attny actually told us that my wife going back to school was a positive thing that the Trustee would look upon in our favor and that getting those loans would be OK.

That was backed up by the Trustee and my wife just received another round of loans.

Of course, thats our situation and I am not trying to say it will be the same for everybody.

[HHM]

It will really depend on when the loans go into repayment.

You will need to get permission. But if the loans don't go into repayment until after your chapter 13 discharge, and assuming no other plan amendments are required, you can probably get the loans.