I am in a dilema regarding the possibility of student loans. I had started a company 4 years ago that had begun a death spiral over a year ago. I am the personal guarantor for the credit lines. Currently the debt load has reached in excess of 100 grand. I am being advised to bankrupt it all and focus on school. My concern is whether the BK will jeapardise any possibility of a student loan, then again the value of the debt if repaid is probably half the cost. Could any body with student loan experience shed some light on this matter for me. 
Having a bankrupcy on your credit won’t affect your federal student loans (stafford loans), but it will affect the private investors. Whether to file or not depends on your circumstances. If you just need money to pay for tuition and will work to earn money for living expenses, the bankrupcy might be okay. If you need money for living expenses, I would try to find a different way, since the bankrupcy will make it very difficult to get private loans. I think the federal stafford loan limit right now is around $10,000 a year. I was in a similar situation with a failed business and ended up filing for bankrupcy. I haven’t had any problems with it, but my husband works, so my living expenses are taken care of. Hope this helps. Good luck.
Gina
Actually, the federal stafford loan limit (subsidized and unsubsidized combined) is currently $38500 per year. It’s recently been upped.
According to the U.S. Dept. of Ed’s financial aid website http://studentaid.ed.gov/students/publications/student_guide/2005-2006/english/types-perkinsandstaffordloans.htm, the amount which can be borrowed by independent students, inclusive of both subsidized and unsubsidized loans is as follows:
1st Yr. Undergrad: $6625.00
2nd Yr. Undergrad: $7500.00
3rd and 4th Yrs. Undergrad: $10500.00 each year
Graduate: $18,500 per year
Total undergraduate federal loans cannot exceed $46,000. Total undergraduate and graduate federal loans cannot exceed $138,500.
Larry
The maximums for medical and vet school students are higher. Total unsub stafford max (from UW-Madison’s Financial aid Web site:)
“Medical and Vet Med Students $45,167 [per year]
The career … Med/Vet Med/PharmD student maximum is $189,125.”
Quote:
The maximums for medical and vet school students are higher. Total unsub stafford max (from UW-Madison’s Financial aid Web site:)
“Medical and Vet Med Students $45,167 [per year]
The career … Med/Vet Med/PharmD student maximum is $189,125.”
Ok, I think I have found some more information in regards to this. The Federal Stafford Sub/Unsub loan limit is $38,500 per year BUT is prorated HIGHER FOR ENROLLMENT PERIOD GREATER THAN 9 MONTHS. The aggregate total limit is $189,125.
Look at page 18 of this link from the AAMC site.
http://www.aamc.org/students/financing/md2/phase2/pdf/phase2.ii.pdf