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Can a student be denied education loan for reasons that the students parents or the student filed for bankruptcy?

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Can a student be denied education loan for reasons that the students parents or the student filed for bankruptcy?

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Section 525 of Bankruptcy code clearly emphasizes non-discriminatory behavior by loan agencies providing student loans regarding bankruptcy filing reasons. In other words, a loan agency for education can not prohibit a student from getting loan just because the student or an acquaintance of the student filed for bankruptcy.

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