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Impact of bankruptcy and complete student loan discharge on med school (MD) fin aid?

Discussion in 'Financial Aid' started by wormboge, Sep 4, 2014.

  1. wormboge

    2+ Year Member

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    I am tutoring a student who ask me to post this: He just went through a personal bankruptcy and got all of his student loans discharged successfully. How will this impact his eligibility for financial aid in medical school? He will be applying to an MD program in the United States. He is a U.S. citizen and Massachusetts resident.

    (The reasons for the bankruptcy and loan discharge primarily had to do with various ethical violations and violations of the law by the servicing company of the student loans. And because he unknowingly and naively went to a very expensive undergraduate institution that offered financial aid mostly in the form of private loans. Part of the argument for the bankruptcy was that his school actually overlooked federal financial aid and just handed out private loans part of the time. Anyway let's get back to the question.)

    There is no other relevant information.

    How will this impact his eligibility for financial aid in medical school? Please provide a detailed explanation (if possible) including what specifically he might be eligible for, where you are getting your information from, and which schools specifically he might be able to attend or not attend.
     
    #1 wormboge, Sep 4, 2014
    Last edited: Sep 4, 2014
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  3. DrMidlife

    DrMidlife has an opinion
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    The best help you can offer your student is some tough love. He signed for those loans that got discharged. If he's getting more loans, hopefully he'll have learned a lesson and want to be the grownup in charge of reading the paperwork.

    Leave off the details of bankruptcy before med school for a bit. Have him research the basics of financial aid for med school. He can start at finaid.org.

    Seriously, not kidding, make the kid do this for himself.

    Best of luck to you.
     
  4. malick1

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    He got his loans discharged? unless he has a Terminal illness that does not happens!
     
  5. DrMidlife

    DrMidlife has an opinion
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    Not federal loans, most likely.
     
  6. tigers2007

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    I'm calling shenanigans on getting Fedloans discharged (as a result of bankruptcy). As malick1 notes, terminal illness or death is the only way out. I know two individuals who will be paying off loans for four years of partying with nothing to show. Here is a link that lists the ways out - yes there are other ways but they are very unlikely related to that person.
     
  7. sb247

    sb247 Doer of things
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    Bankruptcies will make him untouchable for 2yrs (i believe this time frame depends on what chapter they file), but if he keeps clean he will be ok after that. I had one and was just past that limit when i applied for loans and am good

    Had friends with a lot of recent collections who got nothing

    And no federal student loans don't really go away
     

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