What to do about bankruptcy and eligibility federal student loans?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about bankruptcy and eligibility federal student loans?
My wife has been going to school for 2 years and received federal grants and loans. We filed for bankruptcy 2 months ago. We just found out that the federal loans stopped because of that. We did not include this in the bankruptcy because we planned to pay back what we owed once she graduated. They say she has to pay $3800 up front now before she can graduate next month because her loan was stopped. I didn’t think this was legal, I thought that you could not put federal loans in a bankruptcy or be stopped.
Asked on June 14, 2012 under Bankruptcy Law, Arizona
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Under federal law, student loans essentially cannot be discharged in a bankruptcy before a certain period of time if ever. The bankruptcy filing of you and your wife triggered a red flag with respect to the federally insured loan that was being received for school where future loan payments were stopped.
I suggest that you read the terms of your loan agreement. Most likely a bankruptcy filing gives the lender the right to make any future loan payments.
If your wife wishes to graduate on time, you and she need to find a way to get the additional $3,800 paid for school tuition.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.