please help bankruptcy questions

cptofthehouse
Tue, 26 Jul 2011 13:54:46 +0000

From what I understand, a bankruptcy 8 years ago would not affect federal PLUS loan eligibiliity. They are quite generous in screening applicants. If your DH was turned down for PLUS, he needs to find out why and what he can do to have it reconsidered. It is not the bankruptcy that is the issue.

If you and your husband cannot afford to borrow, or cannot get loans for the college costs, then your stepdaughter either has to find alternative fund sources or go to a less expensive school, such as a local state school that can be covered by Stafford loans and a part time job. If your husband was denied by PLUS, then she is eligible for an additional $4K a year in Stafford funds, which gives her up to $9500 in those monies if she is a freshman. A few thousand from your husband (which he would have to be paying for that loan had he been approved), a few thousand from others, and a part time job could bring her up to $20K. If she works and saves for next year, she might be able to go away to a state school with the proceeds, loans and some support from both parents and others.