Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Can I Apply for New College Loans if I’m Already in a Bankruptcy? – Nicole
How would enrolling in a grad school program affect my CH 13 plan? I have tried to email/call my atty with no response to this.
I am needing either loans and or scholarship. My employer will also reimburse for a small amount of the 20-35K it will take for my masters.
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Will any financial aid affect me? Please advise.
Nicole”
Dear Nicole,
As long as you can continue to fund your chapter 13 bankruptcy plan I can’t see how it would affect it at all. If you were no longer able to fund it as scheduled you’d either need to modify the repayment plan or convert it to a chapter 7 bankruptcy. Both of those options would cost you an additional attorney fee.
Bankruptcy is not an exclusion for government backed student loans. The only issue I am unsure about is if the bankruptcy needs to be discharged for eligibility on future loans. Talk to your college financial aid office about this.
As a result of the Bankruptcy Reform Act of 1994, a student may not be denied SFA loans, including Perkins Loans, solely on the basis of a bankruptcy determination. – Source
Please post your responses and follow-up messages to me on this in the comments section below.
Sincerely,
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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1 thought on “Can I Apply for New College Loans if I’m Already in a Bankruptcy? – Nicole”
Hi Steve, I just came across your site while searching thru the internet. I work in the student loan industry. There are several reasons why you would be denied a loan a student loan. Chapter 7,11, or 12 bankruptcy that has not been discharged for at least 5 year, foreclosure, accounts 90 or more days delinquent, accounts in collections, charge offs, wage garnishment, voluntary surrender or repo, and tax liens, there might be more but I have brain fog. A chapter 13 is not a denial reason however, if the credit check that is run shows an account in collection that is included in the bankruptcy it will trigger a denial. If denied the person has 3 options – endorsement, talk with Financial for other funding options or appeal the decision. If the borrower chooses to appeal then they would need to provide documentation stating the account has been corrected or included in a chapter 13. On studentloans.gov there is a learn more tab which explains “extenuating circumstance” ie: credit denials. Â
Hi Steve,Â
I just came across your site while searching thru the internet. I work in the student loan industry. There are several reasons why you would be denied a loan a student loan. Chapter 7,11, or 12 bankruptcy that has not been discharged for at least 5 year, foreclosure, accounts 90 or more days delinquent, accounts in collections, charge offs, wage garnishment, voluntary surrender or repo, and tax liens, there might be more but I have brain fog. A chapter 13 is not a denial reason however, if the credit check that is run shows an account in collection that is included in the bankruptcy it will trigger a denial. If denied the person has 3 options – endorsement, talk with Financial for other funding options or appeal the decision. If the borrower chooses to appeal then they would need to provide documentation stating the account has been corrected or included in a chapter 13. On studentloans.gov there is a learn more tab which explains “extenuating circumstance” ie: credit denials. Â