If you are thinking about declaring bankruptcy and wondering how this will impact your college student loans, here is some basic information that will help you understand things a bit better.First of all student loans debts are treated exactly the same as all other unsecured debts and payments owed to creditors. However, recent law changes state that an individual filing bankruptcy within ten years (it used to be two years) of last attending school will not be eligible to have their student loans discharged at the end of the normal nine-month bankruptcy term. The student must make a separate application to the court to have the student loans discharged. What this means is that filing for bankruptcy in order to avoid paying back your student loan doesn't work anymore unless you apply separately and after 10 years of your last day of school.
You may be interested in first trying to consolidate your student loan before you try to apply for a student loan bankruptcy. You may also be wondering if you can get a student loan if you are filed under bankruptcy. The answer is that you will have a bit of a problem getting a student loan if your credit is bad. The good news is that you can apply for a Pell student grant, which doesn't require good credit or you can apply for a government grant which has the same rules and doesn't have to be paid back. If you are wondering how you can do this, just visit firstgov.com for information about government grants. The best news about these is that the government has to give out the money to someone; it might as well be you.
Other alternatives include the A Federal Perkins Loan which is money for college with a low interest (five percent) loan for both undergraduate and graduate students with financial need. Your school or college is your lender. All you have to do is Apply to your college. The loan is made with government funds with a share contributed by the school. You must repay this loan to your school or college. The only other option is to consolidate your student loan. You can reduce your student loan payments by up to 70% through student loan consolidation! When you consolidate your student loan your are essentiality refinancing all the student loans your currently have. The first thing to remember about a student loan, that it really is not an expense, it is an investment, in yourself. Your college education can lead to a more rewarding job and greater earning capability throughout your career. Don't let the burden of student loans impact your credit. Look at consolidating your student loans to make it easier to pay back.
