Will I Be Able To Get A Student Loan If I File Bankruptcy?

Posted on June 25, 2009. Filed under: Uncategorized |

The Bankruptcy Code makes it illegal for government agencies to refuse student loans to those who have filed bankruptcy. 11 USC 525(c).

So if you have filed bankruptcy, you are still eligible to receive student loans that are backed by the government (Title IV loans) such as the Stafford Loan.

However, if you want to get a student loan from a private lender, that’s a different matter entirely. The Bankruptcy Code prohibits discrimination only from government agencies, not private lenders.

Therefore, private lenders are under NO obligation to give you a student loan if you have filed bankruptcy or have other credit problems.

This doesn’t mean that you won’t be able to obtain a student loan from a private lender if you have filed bankruptcy. It just means that private lenders are allowed to consider your credit history including bankruptcy filings in evaluating your student loan application.

-From the Oklahoma Bankruptcy Lawyer Blog,  http://www.oklahoma-bankruptcy-attorney.com/  , written by attorney Dan Nunley

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