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Pell Grants/staffford loans and BANKRUPTCY

BrennaBrenna Posts: 1Registered User New Member
Hi,
I am new to this site. I have a question.

I am 40 and having to return to college. The problem is that the same financial hardship that made me have to return to school , also has me facing bankruptcy.

My question is will the bankruptcy affect any future grants or loans?
I have already received some for this semester and next, will it affect those ?

I suppose it will definetly affect loans , but i have no idea about the grants.

Any help is appreciated. Thanks
Post edited by Brenna on

Replies to: Pell Grants/staffford loans and BANKRUPTCY

  • merlinjonesmerlinjones Posts: 807- Member
    At the CC I work at, in a humble capacity (meaning a very part time capacity), they have to make an "Institutional Decision" w/r/t loans.

    Did you get loans before? Did you get grants before?

    As you state that you are returning to College, you might want to double check everything on the National Student Loan Database System. Because, there are limits to all of this stuff, eh?

    http://www.finaid.org/questions/bankruptcy.phtml

    http://www.finaid.org/educators/pj/bankruptcy.phtml

    This link is interesting, but it hurts my eyes! :)

    http://www.finaid.org/educators/pj/highereducationact.phtml


    Higher Education Act of 1965

    Section 479A [20 USC 1087tt]
    DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS


    IN GENERAL. -- Nothing in this part shall be interpreted as limiting the authority of the financial aid administrator, on the basis of adequate documentation, to make adjustments on a case-by-case basis to the cost of attendance or the values of the data items required to calculate the expected student or parent contribution (or both) to allow for treatment of an individual eligible applicant with special circumstances. However, this authority shall not be construed to permit aid administrators to deviate from the contributions expected in the absence of special circumstances. Special circumstances may include tuition expenses at an elementary or secondary school, medical or dental expenses not covered by insurance, unusually high child care costs, recent unemployment of a family member, the number of parents enrolled at least half-time in a degree, certificate, or other program leading to a recognized educational credential at an institution with a program participation agreement under section 487, or other changes in a family’s income, a family’s assets, or a student’s status. Special circumstances shall be conditions that differentiate an individual student from a class of students rather than conditions that exist across a class of students. Adequate documentation for such adjustments shall substantiate such special circumstances of individual students. In addition, nothing in this title shall be interpreted as limiting the authority of the student financial aid administrator in such cases to request and use supplementary information about the financial status or personal circumstances of eligible applicants in selecting recipients and determining the amount of awards under this title. No student or parent shall be charged a fee for collecting, processing, or delivering such supplementary information.

    ADJUSTMENTS TO ASSETS TAKEN INTO ACCOUNT. -- A student financial aid administrator shall be considered to be making a necessary adjustment in accordance with subsection (a) if --
    the administrator makes adjustments excluding from family income any proceeds of a sale of farm or business assets of a family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or an involuntary liquidation; or
    the administrator makes adjustments in the award level of a student with a disability so as to take into consideration the additional costs such student incurs as a result of such student’s disability.



    I am thinking that you are alright for grants?! But, maybe you should speak with the fin aid head at your school. GOOD LUCK!!!:):):)
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