Student Loans - Applying Before Filing?

[parantaja]

I'm trying to get all my ducks in a row and get my life back on track.

I need to go through the bankruptcy process (ch 7), but I also need to resume/finish my college education.

Will it hurt/kill my bankruptcy case (filing in Texas, btw) if i apply for (federal) student loans prior to filing?

In my view, it shouldn't because they're non-discharge-able anyway, but I know not the real world doesn't usually conform to my view.

*I have no interest in cheating or taking advantage of the system. I hope my inquiry doesn't come off that way. I had to leave a 45,000/yr job about 2 years ago and haven't been able to get back on my feet since. I know finishing my education is the only way for me to get things back on track.

[KKAB]

I applied for financial aid in the month prior to filing bk. I received my check right before filing, but did not list it as cash on hand as it was nondischargeable and its purpose was for my school. I also did not cash or deposit it until after I'd filed. I have had no trouble receiving financial aid since then, in fact I just got my grant and loan for the fall semester. This did cause any problems with my bk and was actually never brought up.

I do not take out more than I need for books and tuition though, as I realize repaying this student loan debt could be a nightmare in the future when I am repaying it! This is one situation where I agree it is better to have the debt and be able to get a decent job in 2 years!

[sisterfunkhaus]

You should have no trouble. I did not. BK does not matter in the scope of federal loans.

[NowImDownInIt]

Thanks for asking that. I was wondering too!

[sisterfunkhaus]

Also wanted to add that I was able to get loans DURING BK as well.

[liz417]

Also wanted to add that I was able to get loans DURING BK as well.

Thanks for sharing and that's good to know. I want to finish my education while we are in bk (ch 13/5 years).

[danaf]

If you are in Texas which is so debtor friendly then why the urgency to file now? Why not finish your education and then file. BK is a card you can only play once every 10 years. What happens if you get sick and need to be hospitalized and you already filed?

[momof5]

We HAD to apply for the parent plus loan so we could be turned down. Sounds so strange to write that but its true. It was the only way my daughter could then be eligible for an unsubsidized stafford loan.

Edit to add: this was 3 weeks before our 341

[NowImDownInIt]

If you are in Texas which is so debtor friendly then why the urgency to file now? Why not finish your education and then file. BK is a card you can only play once every 10 years. What happens if you get sick and need to be hospitalized and you already filed?

Are you referring to me? I had no other choice. It was either file or walk to work...