How will filing BK affect getting financial aid for my daughter ?? Please help !!

[Anonymous]

I am in the process of filing BK, do to the decline of my business and  the fact that I have had to use credit cards to survive, I have seen my credit go from over 800 to mid 600s.  My daughter is entering her sophomore year in college, and thankfully she has been accepted into the honors program so I am only responsible for half tuition about  $24,000 ( CRAZY ) Last year we did not receive any financial aid, and I am wondering if since I am filing BK that will help or hinder our chances this year, any advice or suggestions would be greatly appreciated.

[rena347]

I don't knowhow your bankruptcy could affect your daughter's ability to get financial aid or student loans. Although, a bankruptcy will affect your ability to obtain a parent plus student loan or a private student loan. Unless the requirements have changed in the last few years, a parent plus loan will be denied if the parent borrowing has filed bankruptcy recently unless there are some type of extenuating circumstances.

[Anonymous]

Thank you rena347,  my thought was that since we were in BK they might be more willing to give her financial aid.

[aussiesareforever]

I was able to get financial aid for myself a semeter after I filed BK. I know that it is not the same situation here but wanted to share.

[SoulMaster]

By law, your credit report cannot be used to determine your qualifications for Stafford, Perkins and PLUS* loans.

See here: http://www.finaid.org/loans/creditscores.phtml

-SM

ETA: *PLUS loans require no derogs in the last 60 days or something like that.  Stick w/ Perkins or Stafford.  She also has the option of qualifying as an independent.

[Anonymous]

Thanks again for your help, it is much appreciated

[rena347]

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@Anonymous wrote:

Thank you rena347,  my thought was that since we were in BK they might be more willing to give her financial aid.

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playgolf, it is entirely possible that she might be more eligible for aid. The only thing I know for sure is that my brother was denied a parent plus loan because he had filed bankruptcy within the last 5 years. The school did help his daughter find either more loan options or more aid not sure which but she is now in her third year of college.

[rena347]

Thank you rena347,  my thought was that since we were in BK they might be more willing to give her financial aid.