Student Loan Discrimination and Bankruptcy

After my previous blog post on employment discrimination and bankruptcy I have had several inquiries as to whether filing bankruptcy in Kansas City will prevent an individual from obtaining student loans.  The simple answer is "no".

Bankruptcy Code Section 525(c) mandates that any government unit that administers student grant or loan programs, or any person that has a business that includes making student loans that are guaranteed or insured under a student loan program, "may not deny a student grant, loan, loan guarantee or loan insurance" to a person who has filed for bankruptcy, or to someone associated with a person who has filed for bankruptcy, solely because that person either filed for bankruptcy, or is insolvent.  The text of this code section can be found here:  http://codes.lp.findlaw.com/uscode/11/5/II/525

Therefore, the Bankruptcy Code prohibits discrimination by government or private lenders in issuing student loans based solely upon you or anyone you are associated with filing for bankruptcy or being insolvent.  However, you may still be denied a student loan based on some other reason.  For additional information please visit my website at http://www.thesmalleylawfirm.com  I, Kansas City bankruptcy attorney Cary Smalley can also be reached at (913) 601-3549 or cary@thesmalleylawfirm.com if you have legal questions.  I offer a free initial consultation.