Can you still get federal financial aid for college if you file chapter 11 and a defaulted student loan?
Posted by StudentLoan on August 11th, 2010 | 5 comments
I have the tyro loan which is in default. If we record failure will we still be means to get monetary aid?
Comments
you can file bankrupcy but i dont reckon you can wipe away student loan debt. it wil be there until you pay it off and if you dont pay it off then it will ultimately ruin your credit for the rest of you life. you can file and wipe away anything else, but student loans dont go anywhere, so if you are in default odds are you wont qualify for financial aid.
filing bankrupcy wont make your student loan disapear they only way you can do that is to pay it off and since you defauted on a student loan you will be unable to get any student loans but if you qualify for any grants you can still get them
You may be able to get grants but not sure about loans.
No matter what type of chapter you file for bankruptcy, you will have to pay that student loan because according to the government “The money was given out in excellent faith”. I read these phrase from one of my loans and felt somewhat angered that huge business can get away with millions but we as students have to pay back loans that are mere peanuts, Why?
If you are currently in default you will NOT be eligible for any Federal or State financial aid, including the Pell or FEOSG grants or the Stafford loans until the default is paid.
Student loans CANNOT by law be included in bankruptcy actions.
You can not get financial aid until your on out of default from the loan. Filing bankruptcy will not do anything to the loan so it will still be in default.