Can I get student loans while my chapter 7 is pending?

[tigergem]

I read somewhere that the interest rates are supposed to go down on Stafford loans next year. I can't remember where I read it. Did you read that?

[lezlovin]

i hadn't heard that, but i did hear they were trying to pass legislation making it so your student loan payment is never over 10% of your income. i sure hope htey do that !!!

[tigergem]

Oh those were interest rates for subsidized loans.

Academic Year Subsidized Rates Unsubsidized/Graduate Rates
2009-10 5.60% 6.80%
2010-11 4.50% 6.80%
2011-12 3.40% 6.80%
2012-13 6.80% 6.80%
Current Stafford Loan interest rates in effect from 07/01/2010 to 06/30/2011

[lezlovin]

Wow, I guess that is a good rate when you consider how crappy my credit is. I have both subsidized and unsubsidized. Im getting my B.A. and enrolling for the Masters next fall, so of course ill be barrowing even more. I hope it turns out to be worth it...

[tigergem]

I was thinking about getting a certificate. I think it would be worthwhile, but I am terrified to ask my trustee for permission to incur the debt.

[lezlovin]

Update: the loan department at my college finally certified my loans. They are showing on my account. Financial aid said they had to do extra steps for mine, so thats why it took longer. When i ACTUALLY get the $$ i will post to let you all know the final result.

[SweetGeorgia]

"Why would you borrow money to go to school?" Lots of reasons: top law schools cost something like $45K per year now. Up until recently, that degree was a take-it-to-the-bank guarantee that you would have a good paying job. Likewise, medical school. Engineering, nursing, veterinary, pharmacy, etc.

Lots of people don't have to take on student loans. Maybe they've been done with school for a long time (when it wasn't crazy expensive), or went to state schools (although the one I quoted above is a state school), or just had the money to pay (i.e., generous or dead family). I am sure that the availability of student loans has contributed to the insane increases in tuition. But it's kind of perverse to blame middle- and lower-class student borrowers, particularly the ones who have trouble repaying. They are the least powerful players in the situation.

No, getting an education doesn't guarantee an income, let alone a good one. But NOT going to college, especially if you're female, minority, or blue-collar, doesn't guarantee much either (except that you'll never get a professional degree). The benefit of a college education over an entire working life still outweighs the debt burden, but a lot of people would be very happy if folks who couldn't write a check for tuition just didn't get one.