Should I apply for student loans before I file for bankruptcy or after?

I want to go to graduate school. The reason is because I was laid off 2 years ago I feel that I need to add a professional degree to change career direction. I have been unemployed/under employed the last 3 years. In fact, a lot of our bills didn’t paid so they are in default. We have over $82,000 in debt. My wife has been getting student loans the past 2 years because she is getting her undergraduate degree. I think filing is inevitable unless my current situation changes dramatically.

Asked on July 4, 2013 under Bankruptcy Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Once you file for bankruptcy, it is incredibly unlikely that any will make you student loans--your credit history/rating will be close to rock bottom, for years, and anyone reviewing your credit will see the bankrupty.

On the other hand, bear in mind that while fully private student loans can be discharged in bankruptcy, a federally backed, guaranteed, etc. student loan cannot be--bankruptcy will not help you vs. those loans.


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