The Relationship Between Student Loan and Bankruptcy

There are a lot of questions if you have been through bankruptcy and think you may want to become a student again or if you are facing bankruptcy and you are currently paying back your student loans. Most of these questions about student loans and bankruptcy can be explained in pretty simple terms which means you don't need a law degree to understand the relationship between student loans and bankruptcy. The relationship between student loans and bankruptcy is one of the few places you will discover such cut and dry rules when it comes to your bankruptcy.

Bankruptcy And Getting A Student Loan

If you are looking to get a student loan and you are still under a bankruptcy, or have a bankruptcy in your past, then you have to remember that all is not lost. The dynamic between student loans and bankruptcy allows you a fresh start as long as you have abided by the ruling of the bankruptcy court. When you go into a student loan application process with a bankruptcy for the lender to consider these all become a case by case basis but generally speaking if you have maintained some sort of good credit after your bankruptcy, and everything in your bankruptcy is taken care of to the satisfaction of the court and the lender, then your chances of getting a student loan are just as good as any one else's. Once again it is at the discretion of the lender so make sure you discuss how they treat the dynamic between student loans and bankruptcy before you make any assumptions on your own.

If you have not been able to keep your finances straight after a bankruptcy, or you have taken a previous student loan that you defaulted on and was not discharged in your bankruptcy, then you will need to take care of that before you apply for new student loans. One thing about the dynamic between student loans and bankruptcy is that if you have existing student loans that are in default that will always prevent you from getting new loans.

Student Loans And Filing For Bankruptcy

Student loans are normally not discharged by a bankruptcy because, by law, they cannot be. You can petition the court to consider excessive hardship and ask that your student loans be discharged but for the most part you will still be responsible for your student loans even after you declare bankruptcy.

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