How to Repay Student Loans - Part 22

Speaker: How will declaring bankruptcy affect my eligibility for a future student loans?

Justin Draeger: Borrowers who declare bankruptcy and have their loans in what's called the bankruptcy shouldn’t be penalized in anyway from taking additional federal student aid. Bankruptcy alone is not enough to disqualify for future federal student loans. However, if you default it on your loans by not making payments before you declare bankruptcy, which is sometimes the case you will be denied additional student aid because of the student loan default, not because of the bankruptcy.

For some federal student loans, like plus loans which graduate students or parent apply for you maybe denied the plus loan because of your credit history which would obviously be adversely by the bankruptcy not because of the bankruptcy alone but because of your credit.


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