Student Loan After Bankruptcy

A student loan after bankruptcy is still a viable debt that needs to be repaid since these contracts aren't erased like other debts. The only way a borrower can dismiss these types of contracts is if his income possibilities are so limited that he cannot now, or ever (because of dire misfortune) pay the debt even though he's sincerely tried---and can prove all of this to an inquiring judge. Hopefully, the borrower's circumstances are not so severe because he can use student loans after bankruptcy to regain a better credit rating. The trick is to make the payments on time, every time, and even try to pay down the balance by making extra payments. If the contract has not been consolidated or negotiated or discussed with a financial counselor, then not all avenues of effort have been fully addressed. No matter what, young borrowers need to work closely and forthrightly with a trusted lender.

If the coed is able to double or even triple the minimum payments, success is on the horizon. Student loans after bankruptcy that are paid down will have the advantage of improving a person's FICO score, the three digit number that identifies that person as a credit risk or a credit star. It is worth the effort since this one commitment to "pay more" may mean that additional student loans after bankruptcy--even car and home loans--will not come with excessive, budget-killing interest rates later. Even making a year's worth of consecutive low payments on time shows good faith. Any effort to regain credit worthiness will play a significant part in a lender's decision. Bankruptcy itself may or may not have an impact on eligibility for federal student aid. By law, Title IV grants and loan aid cannot be denied just on the basis of a previous bad financial history.

Seeking a student loan after bankruptcy is an important step towards financial freedom. Federal contracts are especially helpful to borrowers because no repayment is required until 6 months after graduation. If there is still a question of delinquency or default, any school would be reluctant to add more financial risk to a young borrower, not to mention the financial risk it brings to the school. If parents are turned down for a federal contract because of bad credit, the coed can apply for an increased student loan after bankruptcy through an unsubsidized Stafford loan. The parents' credit history is not a problem for coeds unless they have parents co-signing the documents. If bankruptcy was caused by extraordinary circumstances, most lenders will try to find a way to grant a student loan after bankruptcy, if at all possible. No believer is exempt from handling money wisely. Proverbs 16:20 says, "He that handleth a matter wisely shall find good: and whoso trusteth in the Lord, happy is he." Our first source of wisdom is God. We must search His Word to help us find our way in the world, even as we apply for student loans after bankruptcy.

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The Texas Tribune: Schools Turn To Fees After Drop in State Aid

Consider the Keller Independent School District just north of Fort Worth, where students who ride the bus will now pay $185 each per semester. Rather than scrap busing altogether after voters rejected a property tax increase in June to make up for lost state revenue, the district opted to institute fares.

The $4 billion cut in education financing at the state level for 2012-13 means these extra charges will become increasingly common.

“We’re going to see districts charging fees for things that they have always been able to but just haven’t chosen to in the past,” said David Thompson, a former general counsel for the Texas Education Agency who now represents school districts.

Across the country, such fees also threaten to draw lawsuits — affiliates of the American Civil Liberties Union in California filed in September against what it called the state’s “pay to learn” public schools —?about what it means to provide a “free” public education under state constitutions.

Texas law gives districts broad authority in deciding what fees to charge students. There is one firm boundary: If it is an expense related to an activity or item required for a course grade, like textbooks, districts cannot charge for it. Basics like pens, erasers and notebooks do not count, and any charges related to activities or services where participation is voluntary — extracurricular activities, class trips and, yes, transportation — are fair game. The district must also have a process to waive or reduce fees for students who cannot afford them. Keller I.S.D., for example, will charge $100 each for students who qualify for free and reduced-cost lunches.

Michael Griffith, a school finance expert with the Education Commission on the States, said that while fees for extracurricular activities had been on the rise even before the current economic downturn, more schools were now exploring ways to pass on basic costs to parents. ?

“We see a lot of evidence now that there are districts and schools pushing the line,” Mr. Griffith said.

That can often happen in letters home, he said, with teachers implying that certain supplies are required and that students cannot show up without them.

Charging fees can hurt poor students, especially those whose families just miss qualifying for a waiver, said Caroline?Holcombe, a research analyst at Children at Risk, an advocacy group based in Houston.

“It’s likely money families just don’t have,” Ms. Holcombe said. “And if they are choosing between the next meal they are going to put on the table, whether they are going to buy fresh fruit and vegetables, and whether they are going to allow their kids to spend time after school at an activity, that’s a tough decision.”

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