Applying for student loans while in default on credit cards?

[Diesel73L]

My wife and I have defaulted on our credit cards due to her job loss. By letting the cards go we can pay our mortgage, support ourselves, and work toward filing for CH7. My wife recently found out that she could possibly get another job at the school where she was last employed as a special education teacher if she were enrolled in special education courses. The position would not start until November 2012 (we will likely file in October 2012) but she would need to interview in August and would need to already be enrolled to be considered. Basically what I'm trying to determine is whether or not applying for student loans while in default on our credit cards will jeopardize our BK filing in anyway. Obviously we know we're in financial trouble, but it's not like we're going out and buying a 60" flatscreen-she just needs 15 credits from a local state school to get this certification which could get her off of unemployment and back in the labor force. Can anyone advise?

[HHM]

Non-issue as far as the BK is concerned.

[keepsmiling]

Hey Diesel, been quiet on your end and been wondering how you were doing.
Was it you who had the bonds? If so did you ever check on them?

[SMinGA2]

Would depend on what type of student loans. Private would certainly be an issue, but federal stafford loans should not. (I just received my disbursement for summer semester courses.)

[LadyInTheRed]

Would depend on what type of student loans. Private would certainly be an issue, but federal stafford loans should not. (I just received my disbursement for summer semester courses.)

Why would Private loans have a negative effect on a BK while federal loans wouldn't? They are both non-dischargeable debt.

[SMinGA2]

Apologies. I misunderstood the question. Thought the OP was asking if having defaulted credit cards would make it a problem to obtain student loans. "Applying for student loans while in default on credit cards?"

Why would Private loans have a negative effect on a BK while federal loans wouldn't? They are both non-dischargeable debt.

[Drazil65]

My husband had already applied and was approved for his 3rd private sallie mae student loan when he filed in December. Sallie Mae stopped the disbursement for the spring semester because of the filing. He filed in December, when they rec'd notice they stopped everything at that point until the discharge. They put the account into bankruptcy and suspended all activity. Once they had notice that the chapter 7 was closed (March 2012) they put everything back to active but of course it was too late for the spring loan funds.

[SMinGA2]

This got me to thinking. We are in a holding pattern of knowing we'll have to file if anyone tries to get a judgment against me - can't afford to have my wages garnished. Was thinking we'd need to make it until December to avoid issues with my student loan disbursements. Spring '13 will be my final semester. It makes sense that the funds need to be actually turned over to the school though and looking at past calendars that happens in early January. Glad you posted - this means mid to late January is our 'safe' zone.

Which, fingers crossed, should not be a problem. That's less than 7 months away and no legal activity yet. If/when it does happen - I know we can squeeze 2-3 months out of filing an answer and such.

My husband had already applied and was approved for his 3rd private sallie mae student loan when he filed in December. Sallie Mae stopped the disbursement for the spring semester because of the filing. He filed in December, when they rec'd notice they stopped everything at that point until the discharge. They put the account into bankruptcy and suspended all activity. Once they had notice that the chapter 7 was closed (March 2012) they put everything back to active but of course it was too late for the spring loan funds.