Have any of you experienced this?

[sntpmdmaybe]

My sister is enrolled at cc she previously attended. She left on academic probation and it was still active when she re-enrolled. She had to do well first then she would get financial aid. She did well and when it was time to get student loans she was denied because she filed for bankruptcy. After jumping through hoops and applied for loans again they said she asked for too much. Has anyone else experienced this? Is this even legal. I personally never heard of anything else like this. I feel that the individual in charge of this is taking advantage of the fact that she doesn't really know how financial aid works and that she is now at this woman's mercy. I personally feel she is being treated unfairly. If anyone knows of something like this happening please let me know.

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[deleted480308]

My sister is enrolled at cc she previously attended. She left on academic probation and it was still active when she re-enrolled. She had to do well first then she would get financial aid. She did well and when it was time to get student loans she was denied because she filed for bankruptcy. After jumping through hoops and applied for loans again they said she asked for too much. Has anyone else experienced this? Is this even legal. I personally never heard of anything else like this. I feel that the individual in charge of this is taking advantage of the fact that she doesn't really know how financial aid works and that she is now at this woman's mercy. I personally feel she is being treated unfairly. If anyone knows of something like this happening please let me know.

You don't get student loans with a bad payment history like bankruptcy in very recent history. That's not the school's job to keep track of because students are adults. I will agree with you however that there is a large swing in the qualty of financial aid depts from school to school

 

[shewillrun]

You can't be denied federal student loans based on bankruptcy or bad credit. However, you CAN be denied loans if you have a federal loan (stafford, perkins, etc) that has defaulted. Many default on their loans but usually will declare bankruptcy to avoid this. I forget the types of bankruptcies but I believe Chapter 13 involves paying things back over 5 years which puts your loans on automatic deferment. If she did not take care of her previous loans (if she had any) and they defaulted without her knowledge...she will be denied future loans. If she didn't borrow loans and just has the bankruptcy going against her...they should NOT be denying her aid. My knowledge is based on what I know about federal aid lol but I'm not an expert on the subject

 

[deleted480308]

You can't be denied federal student loans based on bankruptcy or bad credit. However, you CAN be denied loans if you have a federal loan (stafford, perkins, etc) that has defaulted. Many default on their loans but usually will declare bankruptcy to avoid this. I forget the types of bankruptcies but I believe Chapter 13 involves paying things back over 5 years which puts your loans on automatic deferment. If she did not take care of her previous loans (if she had any) and they defaulted without her knowledge...she will be denied future loans. If she didn't borrow loans and just has the bankruptcy going against her...they should NOT be denying her aid. My knowledge is based on what I know about federal aid lol but I'm not an expert on the subject

Just saw this was about community college...for grad school you absolutely can be denied the loans based on bad credit history

 

[ImportedKamariya]

actually credit bankruptcy shouldn't mean anything compared to student loans because the latter can't be discharged. companies WANT you to take a student loan unless you are old and about to die because these loans will follow you to your grave if you don't pay them back. there is no other way out. for this reason, your credit should not affect whether you get a student loan or not. unless it's a loan for hundreds of thousands of dollars, loans are simply not worth it. i'd rather work and pay for school as i go through it. it's very easy to get caught up in the trillion dollar mess that is student loans. you will be one of those people i read about on cnnmoney.com about how you are on a 30 or so year payback plan and your life revolves around repaying loans. again, unless it's a loan for tremendous amounts of money and good payback potential (no, law isn't one of those fields, not for the average student), then yes a student loan is great and you should qualify otherwise i wouldn't do it.

 

[gyngyn]

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[sntpmdmaybe]

You can't be denied federal student loans based on bankruptcy or bad credit. However, you CAN be denied loans if you have a federal loan (stafford, perkins, etc) that has defaulted. Many default on their loans but usually will declare bankruptcy to avoid this. I forget the types of bankruptcies but I believe Chapter 13 involves paying things back over 5 years which puts your loans on automatic deferment. If she did not take care of her previous loans (if she had any) and they defaulted without her knowledge...she will be denied future loans. If she didn't borrow loans and just has the bankruptcy going against her...they should NOT be denying her aid. My knowledge is based on what I know about federal aid lol but I'm not an expert on the subject

Thanks for your response. My thinking is along the same lines as yours, so I think my sister got loans when she fell for The University of Pheonix scam. And maybe she defaulted on those loans and she just didn't want to tell me.

 

[sntpmdmaybe]

Just saw this was about community college...for grad school you absolutely can be denied the loans based on bad credit history

I assumed your first answer was for grad school and thanks for your prompt response.

 

[WaterPog]

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I've been using mine for years w/o issue.

As far as grad school, it's only the grad plus loans that are credit sensitive, not the standard fed loans.