Bankruptcy and Financial Aid?

<p>The summer before my freshman year of high school, my family filed chapter 13 bankruptcy. We've had to make monthly payments to the debt consolidation company as well as our lawyer, leaving us with very little money. Unfortunately, we make about $170,000 a year, very little of which we see. Will FAFSA take bankruptcy into consideration when awarding money? If not, would colleges offer me more money because of it?</p>

<p>It’s doubtful that any school is going to take the BR into acct, unless maybe the BR was due to a very large medical expenses. </p>

<p>I don’t think FAFSA takes a BR into acct at all. And, FAFSA does not “award money.”</p>

<p>Your parents earn a high income. I don’t know how much their monthly payments are for the BR, but if they’re paying something like $5k a month ($60k per year), then that still leaves them with a strong income. It sounds like by the time you go to college, they will have paid for 4 years. Again, if they pay $5k a month, that’s $240k. </p>

<p>Since you probably will not get much/any aid, you need to look at schools that will give you large merit scholarships for your stats.</p>

<p>You need to have an honest talk with your parents. Find out how much they’ll pay each year for college. If the number is very low or 0, then you need to know that now, so that you can make appropriate plans. No school will likely give you a “free ride” unless you’re a NMF or something like that. </p>

<p>Do you know how much your parents will pay? If not, ask them.</p>

<p>What year in high school are you?</p>

<p>What is your GPA? What are your test scores?</p>

<p>I’m not quite sure of their monthly payments, but I do know that we could only pay about 10-15k a year max. I’m a senior male from WV. 3.38 UW and a 3.63 W. 1870 (640/620/610), 27 on the ACT, and a 5 on the AP US History exam.</p>

<p>I agree with above because schools generally do not take debt into consideration for financial aid. Just wanted to add that they won’t be able to qualify for a parent plus loan so that is something to keep in mind.</p>

<p>BTW- we filed BK 3 years before our oldest went to college due to an accident husband was in & resulting medical bills & being unable to work for an extended period. As far as I remember I don’t think the BK ever came up while applying for FA but I do know we would not qualify for a plus loan.</p>

<p>I’m not quite sure of their monthly payments, but I do know that we could only pay about 10-15k a year max. I’m a senior male from WV. 3.38 UW and a 3.63 W. 1870 (640/620/610), 27 on the ACT, and a 5 on the AP US History exam.</p>

<p>You don’t have the stats for the schools that give the best need-based aid anyway. Those are the most selective schools. </p>

<p>You need to raise your scores for the best merit scholarships. </p>

<p>What year in high school are you?</p>

<p>Are you certain that your parents will pay $10l-15k per year? ASK THEM so you’re not over-estimating. </p>

<p>If your parents CAN pay $10-15k per year, then that’s about the cost for: Room, board, fees, books, and misc costs. That means that you’d need a FULL TUITION scholarship. So, you’d need higher stats. </p>

<p>If you can’t get higher stats, then you’d need to explore other options…</p>

<p>1) Commute to your local state school</p>

<p>2) Go to a local CC for 2 years, save your parents’ contribution, and then go away for 2 years.</p>

<p>3) Find at least a 2/3 tuition scholarship, and then use your parents’ contribution, a student loan, and maybe some summer earnings to pay for the rest.</p>

<p>Yanks, you unfortunately don’t have the stats for the vast majority of schools that meet need, so the discussion is probably moot anyway. If you were looking at schools that have great financial aid it would be worth discussing with them, but those are the most selective schools.</p>

<p>Unfortunately, given your stats, you’re most probably looking at a state school which you could manage with your parent’s contribution plus a student loan. Or start at a CC for two years and save your parent’s money fr the last 2 years.</p>

<p>All right. Thanks so much for your input.</p>