<p>What impact does bankruptcy have on financial aid? Had substantial reduction in income as well as substantial medical expenses. Am also losing my home.</p>
<p>Is this for your child? I think the only aspect of bankruptcy (chapter 7) that will potentially have an impact is the parent’s ability (if you are the parent and the FA is for your child) to borrow money. So keeping the cost controllable with a combination of merit aid and need based grants (Pell etc.) may be necessary. If it’s chapter 13 I believe you have much less flexibility for a longer period of time but you don’t have to liquidate all assets.</p>
<p>What grade level is your child now and at what point do you anticipate that your bankruptcy will be discharged?</p>
<p>am a single (divorced) mother.</p>
<p>I declared bankruptcy in 2001 due to my late husband’s medical bills. Older D entered college in 2004, and older S entered in 2006.</p>
<p>The bankruptcy only came into play with older S. I gave the school copies of my paperwork, and that enabled S to take out additional unsubsidized loans.</p>
<p>Basically it is evidence that I would not be approved for a Plus loan.</p>
<p>As mentioned above, bankruptcy will allow your child to borrow $4k more each year. So, as a frosh, instead of borrowing $5500, your child can borrow $9500.</p>
<p>If you’re asking if a school is going to give your child more “free money” just because you declared bankruptcy, the answer is probably, “no.” And, if the medical bills were part of the bankruptcy, then those expenses are gone and therefore no extra consideration will be given.</p>
<p>That said, if your EFC is below about 4500, then your child will get a small Pell Grant - the amount will be $5500 or less…depending on EFC.</p>
<p>Is your child in college now? What is your EFC? If your income has recently been reduced, then you’ll need to provide that info to the school…they may be able to adjust your EFC.</p>
<p>If your child is a high school senior, which schools did your child get accepted to? many schools do NOT have much aid to give, so your circumstances may not matter much to them. </p>
<p>Will your ex contribute at all to your child’s education? </p>
<p>Does your child have an affordable school to attend?</p>
<p>There are three currently in school (undergrad). I don’t think medical bills are gone (in fact most were paid prior) and I have already spent a large percentage of my annual income on medical expenses.
Have $37,000 legal bill from litigation for ex to pay - court ruled ex has no obligation (ex claims they spent $250K on litigation to not pay)</p>
<p>I would write a letter regarding a change in circumstances, detailing the financial aspects of your situation.</p>