If a resident of Pennsylvania would like to borrow money to attend school but has filed for bankruptcy in the past, chances are good that they will still be able to receive a student loan. Although declaring bankruptcy does not look good on a credit report, doing this does not disqualify individuals from applying for all types loans.
Factors that affect the terms of a loan and whether it will be grated at all include current income, credit scores, unpaid bills and the general ability an individual has to repay a loan. Generally, lenders will look at a potential debtor's debt to income ratio. If someone has declared bankruptcy and their debt was absolved in the deal, this will positively affect their debt to income ratio, although the bankruptcy will still likely have a negative impact.
Criteria for obtaining loans will vary from lender to lender, but it is illegal to bar individuals from applying for federal student loans if they have declared bankruptcy in the past. Due to the lower interest rates and generally simple payment terms that come with federal student loans, many people find that applying for a loan of this type is their best course of action.
When someone wants to obtain financial aid, speaking with a representative from their school to learn more about loan criteria may be a wise course of action. If an individual is interested in eliminating their debt before applying for a loan, they may want to get assistance from a lawyer who understands the technicalities of filing for bankruptcy and can help with every step of the debt relief process. Potential consequences of not handling debt properly include repossession, foreclosure and the inability to obtain low-interest loans.