“Dear Steve,

Already in a chp 13 plan, no problems there.

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.

Will any financial aid affect me? Please advise.

Nicole”

The Answer

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.

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