Ch. 13 & Student Loans (enrolled college student)

[SMinGA2]

I've decided to go back to school - I'm only 8 classes from my degree. I've applied & am enrolled to start back this summer. Also anticipating ch. 13 this summer - though maybe I could/should put it off further.

Does anyone have any experience with taking new student loans while in a plan? I understand the need to petition the trustee for taking on new debt, are there any exceptions for student loans? If there would be a conflict, then perhaps it would be better to wait until after my last loans are issued (Jan '13) so I can graduate by spring...

[Mayo]

i'd push off filing the 13 as long as you can. Anytime you incur debt in an active 13 is an act of Congress to get approval and may complicate your 13.

[SMinGA2]

That's what I'm thinking also. I certainly DO want to finish school. So close to being done, and I'm anticipating a raise at my full time job that will allow me to cut back hours at my part time job. (Will need time of course to study & attend classes.) Getting the degree can lead to better job opportunities in the future, and grants should cover the majority of my cost to attend. But I can't afford it without filling in the gaps with student loans. (And I figure with the IBR repayment program, my payment once its all said & done will be the same no matter how much total I owe.)

Have applied for re-admission, and my financial aid file is under review. Should be able to enroll in early May for summer classes.

At the moment no creditors are particularly aggressive - so as long as no one tries to sue me then I'm golden. And if that DOES happen, I still have some time & options to review...

[papie]

I would consult a lawyer who knows the trustee in your area well enough to give you advice on this matter.

I took out student loans shortly after I filed bankruptcy with absolutely no problem. My lawyer told me that it would be rare that my particular trustee would deny a student loan request. It was a simple request and I received a written letter of permission within a week, I filled out the FAFSA and had the information sent to my school. At my school there's a system where you go online and accept the amount of aid that you are eligible for, instead mine had a message telling me to contact the school. I contacted the school and they had me send over the trustee's letter. Then they released my aid and I was able to accept the amount I needed just like anyone else. Cakewalk.

But that's my trustee, the trustee in your area could be an assholio, who knows. I think it's worth checking into though. I think waiting to file bankruptcy and putting off an education that could potentially increase your income are two of the worst things we cam do in our financial lives. I did them both at some point and it was a mistake. lol