Can I receive a student loan before ch 7 is discharged?

[tdawg]

I filed for ch. 7 in November and have my 341 just before Christmas. I am unemployed (got laid off a couple months ago), and I'm not sure how long it will be until I get a new job.

I have been going to school off and on for my Master's degree, but I took this current semester off. I'm thinking about going to school for winter semester, and getting financial aid (it would be student loans) starting January. Would this be problematic to get a student loan before my bankruptcy is discharged? And would it negatively affect my chapter 7 being discharged? I wouldn't think it would since it would all be loans. Then I could have some cash to live off of during the semester while I try to get a job starting after the semester ends. And it would keep my student loans deferred as well (one of them is a private student loan that I can't have deferred by being unemployed).

[tdawg]

Has anyone here went back to school during their ch. 7 (after the 341) and received student loans?

[ejhamilton]

I'm not really sure what you are saying. Are you saying that you are "going back" to school but actually just filing for aid and hoping to receive all that money while none goes to tuition? Or are you actually going back to school and living off the extra?

[ItsJustMe]

I'm not really sure what you are saying. Are you saying that you are "going back" to school but actually just filing for aid and hoping to receive all that money while none goes to tuition? Or are you actually going back to school and living off the extra?

I believe he (she?) is saying that they hope to go back to school for winter term (4-5 weeks, usually) which will defer their student loan as well as making them eligible for a new student loan which will give them some funds to live off of while they look for work.

OP, I don't know. I've read both ways. It seems most people say it is not a problem, but I wonder if it is distrit specific.

[mami2four]

No, you cannot receive a federal student loan while in active bk. Your school financial aid office will require you to submit to them your official discharge papers before they release any money to your financial aid account.

[tdawg]

ItsJustMe has it just right

I believe he (she?) is saying that they hope to go back to school for winter term (4-5 weeks, usually) which will defer their student loan as well as making them eligible for a new student loan which will give them some funds to live off of while they look for work.

OP, I don't know. I've read both ways. It seems most people say it is not a problem, but I wonder if it is distrit specific.

Exactly. I was looking to go back to school in winter term (part time) so it would defer my student loan as well as making them eligible for a new student loan which will give them some funds to live off of while they look for work.

I have a message posted on my SAR that says that I need to contact my school before I can have any funds disbursed because I am in an active bankruptcy. I am not in default on any student loans. I talked to someone in the financial aid office, and he said it probably wouldn't be a problem, but that he'd get back to me and let me know if there was a problem. I haven't heard anything yet. I'll let you know what happens.

[ejhamilton]

Well, this is definitely good info, thanks for posting this. Both my husband and I are in school and that extra money helps, we just got our disbursed checks yesterday. It all goes to bills, but that's the best Christmas gift to me, relief from bills. Do keep us posted on what they do. I'm trying to plan our bankruptcy in the summer, when we are not in school, but I don't think it will have discharged by the time fall term starts.

[jribe]

No, you cannot receive a federal student loan while in active bk. Your school financial aid office will require you to submit to them your official discharge papers before they release any money to your financial aid account.

Yes you can get Federal loans while in BK. I did.

I filed in October, and had my grad school starting in November.

I needed federal stafford loans- and was approved. The only complication was i had applied before filing and sign a MPN, and because of the BK- i had to resign it.

Other than that- no issue getting federal loans.. BTW- if you're in default of federal loans you won't get them..

[JRScott]

Legally you need to get the trustees permission to take on any debt during an active bankruptcy, in addition to securing the loan.

[mtbc]

Is that until it's closed, or just discharged?

[whipster1]

Well, this is definitely good info, thanks for posting this. Both my husband and I are in school and that extra money helps, we just got our disbursed checks yesterday. It all goes to bills, but that's the best Christmas gift to me, relief from bills. Do keep us posted on what they do. I'm trying to plan our bankruptcy in the summer, when we are not in school, but I don't think it will have discharged by the time fall term starts.

You do understand these are LOANS that NEVER go away. If you are using loans that NEVER go away to pay other bills you are digging a hole for yourselves.

[tdawg]

You do understand these are LOANS that NEVER go away. If you are using loans that NEVER go away to pay other bills you are digging a hole for yourselves.

For me, I am halfway through my Master's program (I have been going part time while working), but now I am laid off, so I can't pay tuition. Since I took fall semester off, if I don't go winter, I will have to start paying on existing student loans right after discharge plus prolong finishing my masters. But if I can get a student loan, then I can go winter semester.

[ejhamilton]

You do understand these are LOANS that NEVER go away. If you are using loans that NEVER go away to pay other bills you are digging a hole for yourselves.

I am not an idiot. I know that student loans don't go away and I have every intention of paying them back. Our student loans are not the reason we are filing bankruptcy. We both go to a community college, so it's not expensive. We will never max out the stafford loan limits. You ARE permitted to use your student loans for housing, gas, and food costs, ya know? I do not rely on my students loans as income, I just needed the extra this ONE time, since i have not been able to find work in over a year. And it was only a few hundred bucks, I'm not talking thousands, like it appears you have assumed.

[JRScott]

Is that until it's closed, or just discharged?

Closed, though you'd probably be safe if it was discharged.