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If you filed for bankruptcy, but still want to go to college and need student loans to go, don't fear. The Federal Government awards student loans based on need rather than credit rating, and the Feds finance more college educations than any other loan provider. However, don't count on loans from private vendors, as they still award loans based on credit profiles, and obviously your credit is shot after a bankruptcy.

You're typically better off financing a college education through the Federal Government than going through a private lender anyway. The Direct Loan program typically offers reasonable, honest terms, and a reasonable grace period following your graduation (about six months) before you need to repay them.

Other than interest, you are assessed no further charges other than payments due on your principal balance. You can easily apply for a forbearance, and if you go back to college for any reason, it's typically automatic. And best of all, you can consolidate your loans or take on a graduated or extended repayment plan to reduce your payments with little hassle.

With a private lender, your payments are generally fixed, other charges often apply and to make any changes requires quite a bit of hassle, if they'll allow you to change your payment plan at all. And with a private lender, good luck getting a forbearance if needed. Pay them on time or suffer the consequences.

Of course, the government typically gives you a general amount based on your need, relative to the cost of tuition, and it's not always enough. At a state school with low tuition, the loan amount is typically more than enough to cover tuition and books. If you're living with your folks while attending or working to pay expenses, you may even be able to pay part of it back, reducing your financial burden once you begin repayment.

It gets hairy once you try to cover living expenses with the rest. You can cover board and living expenses with the rest if you tightly plan a budget and the tuition is low enough. But if you're going to school out of state or the asking price is high enough, the loans may not be enough. In this case, you can still attend a prestigious school out of state, but you'll probably need to take a lighter load of classes to make it work financially.

However, all hope is not lost for financing a college education if you file for bankruptcy. The Federal Government awards student loans based on need, and should be able to finance your college education within reason.

Learn more about this author, Steven Gomez.
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