How to Qualify for a Title IV While in a Bankruptcy 13
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Title IV allows students to work part-time to pay for school.Ryan McVay/Photodisc/Getty Images
Review your options. Title IV encompasses multiple types of federal student loans, work study programs and student aid grants. Title IV makes this aid available regardless of whether an applicant has filed for bankruptcy. Students who obtain federal student loans must realize that, once school ends, they will generally have to repay every dime borrowed. Work study programs allow students to work part-time earning money to pay for school tuition, room and board. Grants are one of the Title IV's most attractive options. Unlike students who take out loans, students who receive grants do not have to pay the money back. And, unlike students using work study programs, student using grants do not have to work a part-time job to obtain their funds. - 2
Some Title IV programs require post-graduation commitments.Jupiterimages/BananaStock/Getty Images
Identify your chosen program's requirements. Every Title IV program has its own special qualifications. Federal Pell grants, for example, qualify recipients based upon their financial need. Decision makers consider tuition costs and the applicant's financial situation. Other grants, such as the Teacher Education Assistance for College and Higher Education grant considers eligibility on whether the applicant intends to pursue a teaching career and agrees, in writing, to teach full-time for one year in a high-need subject or area. Title IV programs, such as the Direct Plus Loans, consider the applicant's parent's credit. Title IV decision makers may not use an applicant's bankruptcy filing to disqualify her for student aid. - 3
FAFSA is the first Title IV hurdle.Comstock/Comstock/Getty Images
Complete the Free Application for Federal Student Aid (FAFSA). The Department of Education uses information disclosed in the FAFSA to determine the applicant's Expected Family Contribution (EFC). Your learning institution then uses that EFC to ascertain which Title IV programs you qualify for. FAFSA has its own eligibility requirements. Criminal activity, unpaid student loans debt, improper use of student aid funds, no GED or high school diploma or failing to meet certain citizenship requirements are just a few of the things that could keep a student from successfully submitting the FAFSA. - 4
Missed Chapter 13 payments can harm Title IV eligibility.Thinkstock/Comstock/Getty Images
Maintain Chapter 13 payments. Chapter 13 bankruptcy allows debtors who have gotten behind on their financial obligations to get caught up on those debts without having to lose any of their property. Debtors get caught up on their arrears via a three- to five-year payment plan called a Chapter 13 plan. A Chapter 13 debtor can pay student loans through a Chapter 13 plan. Missing a plan payment can result in the bankruptcy court converting the case to a Chapter 7 bankruptcy or dismissing the case entirely. For those seeking Title IV funds, missing a student loan payment could mean becoming ineligible.
