<p>So my parents are considering filing for bankruptcy. The only thing holding them back right now is that they say that they won't be able to get a loan for my college. </p>
<p>What I want to know is how bankruptcy will affect me and FAFSA and CSS.</p>
<p>Also, are top colleges more likely to give me grants? I noticed a lot of top colleges give grants to people with low income so that's really why I ask.</p>
<p>Sorry to hear that your parents are having a tough time - they’re definitely not alone! There are various types of loans commonly used for education - Stafford and Perkins are in the student’s name only, with no credit check/credit history required, so your parent’s info isn’t considered. If your parents apply for and are refused a Plus loan (which does require a minimal credit check, so it’s very likely they would be), you’ll automatically be eligible for an additional $4,000 Stafford loan. These three loans all have federal guarantees. Other student loans are available from banks but will require credit checks and a cosigner, so you’ll need a relative or someone with good credit to consider these.</p>
<p>Before you worry about how to get student loans, it would be best to construct a college list that will meet your family’s financial needs as well as your career/educational needs. Top colleges often do have generous financial aid, but are also the most difficult to get into. Some schools guarantee to meet 100% of your need (COA-EFC) without loans. Many colleges that give merit scholarships and, if you’re low income, there are also grants available from the federal and state gov’ts as well as the college in most cases. You can check the sticky and other posts on CC and find lots of info about schools with good financial aid records. For grants, loans, and other info this site is helpful:
[FinAid</a> | Student Loans](<a href=“Your Guide for College Financial Aid - Finaid”>Student Loans - Finaid)</p>
<p>One important thing to note: filing bankruptcy and low income do not always go hand in hand, especially with the current economy. You shouldn’t assume that you will be perceived as low income because your parents file for bankruptcy.</p>
<p>Likewise, sorry to hear of your family’s financial woes.</p>
<p>If your parents are considering bankruptcy, their finances have probably deteriorated to the point where they will be denied PLUS loans anyway (even educational lenders have tightened things up), so the decision of whether to file or not should be done without regard to eligibility for PLUS loans.</p>
<p>Very good advice above about giving consideration to a educational financial plan.</p>