What's the best thing to do as a student?

[JayJay]

Hi all. There's so much info here that right now I'm a little overwhelmed. I am 28 years old and I voluntarily left my job in October to try and work on my own repairing computers. Unfortunately, it did not work out as there's so much competition and I get no business. Now I can't seem to find a job as no one is calling me and I've submitted many app's and resumes to countless employers.

To the point, I haven't been able to make any payments at all since January to 3 credit cards:

1) GE Bank (Brandsmart electronics store credit)
2) Macy's Visa (I owe nothing to the store credit, just the Visa portion)
3) Providian

They total up to about 23k and I am getting calls from all three. It seems like Macy's and GE Money are still the original creditors but I know that Providian turned me over to IC Systems Collections Agency.

I've been lucky enough to sell some personal items to pay on my car but that luck has run out for this month.

I am just finishing up community college in the next 2 weeks and will get my A.A. degree for transfer to a major university. I'm also worried that I may not be able to get a student loan because of my mess.

Anyway, to the wise, what steps do you believe I should take because of my situation? Will a BK hurt my chances of getting student loans for school?

Many thanks to you all!

[Flamingo]

Go talk to the financial aid folks at the community college you are at now. Explain your situation. They have heard and seen it all and you are not the only one in this situation in considering/in BK going to school. They can advise you on what to do. There is all sorts of financial aid out there so take advantage of what you can get to complete your education.

[PaKettle]

That's a tough situation.
I don't know how your credit record does or does not affect getting student loans. I think maybe your financial aid office at school might be able to answer that.
I would explain it to them as you have done here and ask them if you'd be better off filing bankruptcy (if you could still get student loans after bankruptcy, in other words) or if you need to keep paying these cards you haven't been paying.
Chances are your credit is already pretty screwed up if you haven't been making payments.

So... it's hard to say. Can your credit be repaired enough to still get student loans, or is it already bad enough that you may as well file bankruptcy? If you file bankruptcy can you get more student loans? I don't know.

Maybe someone here knows.

Good luck!

[ichb]

In my state Vermont it is possible to get federally backed student loans after bk, Stafford for instance. I was told that they are not credit based. So the only obstacle I have is making sure that the trustee assigned to my case is ok with me taking out more student loans.

Hope this helps.

[PaKettle]

In my state Vermont it is possible to get federally backed student loans after bk, Stafford for instance. I was told that they are not credit based. So the only obstacle I have is making sure that the trustee assigned to my case is ok with me taking out more student loans.

Hope this helps.

Note that the above reply refers to a Ch. 13, not a 7, even though this is the Ch. 7 forum...

Now, as far as getting a student loan after a Ch. 7, do a search on this forum. I found this, below. I forget who posted it but:

"There was just a recent discussion about Financial Aid and Student Loans. BK people can get money. There's Gov't money available regardless of credit.

Use the Search Function above and look up FAFSA for that thread.

Also, go to the FAFSA website and find out your state's filing deadline. It might not be too late for you to file. Fill out the FAFSA and see what you can get from the Gov't. There might be help for you that you don't know is available."

[sisterfunkhaus]

I have verified that you can get government backed loans with BK.

This is from financialaid.org:

Federal Loans

Generally speaking, a bankruptcy should have no impact on eligibility for federal student aid.

A few years ago students who had their federal student loans discharged through bankruptcy were required to reaffirm the debt in order to be eligible for further federal student aid. But the Bankruptcy Reform Act of 1994 (P.L. 103-394, enacted October 22, 1994) amended the FFELP regulations dealing with loans discharged in bankruptcy. As a result of those changes, a borrower who had FFELP loans previously discharged in bankruptcy is no longer required to reaffirm those loans prior to receiving additional federal student aid.

Title IV grant or loan aid (including the Perkins loan program) may not be denied to a student who has filed bankruptcy solely on the basis of the bankruptcy determination. Financial aid administrators are precluded from citing bankruptcy as evidence of an unwillingness to repay student loans. Schools may nevertheless continue to consider the student's post-bankruptcy credit history in determining willingness to repay the loan.

As long as there are no delinquencies or defaults on student loans currently in repayment, the student should be eligible for additional federal student loans, regardless of any past bankruptcies. However, if some of the student's federal student loans are in default and were not included in a bankruptcy, the student will not be able to get further federal student aid until he resolves the problem. Students with loans in default should contact the lender (or servicer or current holder of the loan) to set up a satisfactory repayment plan in order to regain eligibility for federal student aid. (If the loan was discharged in bankruptcy after the borrower defaulted on the loan, it is no longer considered to be in default.)

Parents who apply for a PLUS loan may be denied a PLUS loan if they have an adverse credit history. The definition of an adverse credit history includes having had debts discharged in bankruptcy within the past five years. If this is the case, the parents may still be eligible for a PLUS loan if they secure an endorser without an adverse credit history. If the parents are turned down for a PLUS loan because of an adverse credit history, the student may be eligible for an increased unsubsidized Stafford loan.

[JayJay]

Thanks everyone for your help. It's reassuring to hear that I can still receive student aid. It's important that I finish off college so I can get a good job, paying off these creditors.

[JayJay]

sisterfunk, I really appreciate you looking that up for me.