Student loans and parents bankruptcy
If you have children who are students that may need student loans in a near future, your - parental bankruptcy will not hurt their ability to get those loans. It will, however, affect very negatively your ability to help them with the student loans. Here is basically what should be done.
Your kid should first borrow money through a federal Stafford Loan Program. Such student loans will be made directly to the child, so your bankruptcy will not matter. But the maximum amounts student can borrow from this program are $5,500 for freshmen, $6,500 for sophomores, $7,500 for juniors and seniors. That is rather little, and if you need more money to send your child to school of your choice and have not filed bankruptcy within the past 5 years, then a federal PLUS Loan Program is right for you. This loan, designed for the parents, should cover the remaining costs of education that not are not covered by any student loans.
If you have filed for bankruptcy within the past 5 years, you will be denied a PLUS Loan. That denial however, will allow your child to borrow more money through Stafford Program. The limits for 2010 are $9,500 for freshmen, $10,500 for sophomores, $12,500 for juniors and seniors.
Tue Jul 6, 2010 11:07PM | Copyright: www.bad-credit-advisor.com | More in Student Loans | Comments (0)
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