Prospective college students have many responsibilities, from figuring out which school they want to attend to submitting an application and adjusting to life as a college student. However, the financial demands of college can be significant, and may even prevent some students from going to college in the first place. In order to address high tuition, many students and their parents take out student loans (which can be very difficult to pay off and may raise additional concerns related to unmanageable debt). However, financial aid eligibility, in some instances, may be affected by a previous bankruptcy.
If a parent has recently filed for bankruptcy, they may be ineligible for certain types of student loans. In these instances, a student may become eligible for another form of financial aid, and there may be other options on the table with respect to financing a young person’s college education. Certain types of student loans are not affected by the parents of a college student filing for bankruptcy, so parents should not feel hopeless if they have recently filed for bankruptcy but are determined to help their child attend college.
If you are dealing with any of these issues, it is imperative to take a closer look at all of your financial aid options and figure out which direction will make the most sense for you and your child. Attending college can be very tough from a financial point of view, but many parents find that eliminating debt can help them focus on and tackle other financial matters in life.