Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Are borrowers still eligible for FFELP loans if they have filed bankruptcy? Does the period of bankruptcy count toward the 270 days of nonpayment that results in default?

April 26, 2017Bankruptcy borrowers days eligible FFELP filed Loans period

0

Posted

Are borrowers still eligible for FFELP loans if they have filed bankruptcy? Does the period of bankruptcy count toward the 270 days of nonpayment that results in default?

1 Answer

0

Posted

Borrowers do not lose eligibility for FFELP loans based solely on an active bankruptcy action. Statute prohibits schools, lenders, guarantors or the Department of Education from considering a person ineligible for Title IV loans, grants or work-study awards solely because the person has filed bankruptcy, owes a debt that is dischargeable in that bankruptcy proceeding, or has had a debt discharged in bankruptcy.