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[Guest]

I recently turned thirty, I am at the point wondering what happened to
my twenties. I have been on disability for the past two years. My
last position I went several levels up due to the fact I was a
workaholic and I was at the right place at the right time. I know I
could not get a similar position without at least completing my
undergrad. I have had I think one forbearance and a deferment. It will
probably go into default. My fiance has suggested that I go through
bankruptcy but I am afraid because I do want to finish my degree....
Does anyone have any suggestions????

Thanks..

[Steve Blank]

If you want to receive any financial aid if you return to school, you
cannot be in default.

If you return to school at least half-time, your old student loans go on
deferment.

If your only income is through disability your taxable income may be
under $15,000. If so and you do not have to file a tax return, or are
able to file just the 1040EZ or 1040A if you do file, you will receive
an automatic zero Expected Family Contribution on the FAFSA which makes
you automatically eligible for up to $4,050 in Pell Grants plus
subsidized loans.

Government student loans cannot be discharged in bankruptcy except in
the rarest cases.

They can be cancelled if you are permanently unable to work due to
disability. From a Perkins loan form: "The following information must be
provided before a determination can be made that you are permanent and
totally disabled. Permanent and totally disabled is defined as the
inability to work and earn money because of a medically determined
impairment, if that impairment is expected to continue for an indefinite
period or to result in death."

This whole area can be very complicated so you may want to seek advice
from a student financial aid officer at the school you are considering,
and you may also need legal advice from a knowledgeable attorney.

Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761


melaniec032@comcast.net wrote: