if a cosigner has declared bankruptcy does it affect my ability to get a student loan?

Answer by  Ashli (251)

It depends on the loan. If you are getting a federal Stafford loan, credit does not play into it at all. But if you are trying to get a private loan, yes, a co-signer filing for bankruptcy will negatively affect you. You should try to find a second cosigner.

Answer by  John (9008)

The point of having a cosignor is to basically use the cosignor's credit. Thus, if they declare bankruptcy, they become useless. Student loans are non-dischargeable in bankruptcy, and federally insured, so you may be able to get one anyway, but it will be harder.

Answer by  jsreyher (49)

Your ability to get a student loan maybe affected if your consignor has filed for bankruptcy. The key factor is when did they declare bankruptcy. If they were bankrupt prior to you submitting your application then the bank is likely to deny the loan.

Answer by  dx10 (144)

It depends on the terms of the loan, and the issuer. Some banks or institutions may deny the application, some may accept with a higher interest rate. Some might not care.