With an unstable economy due to the recent global economic crisis, there are quite a lot of people who are suffering from deep financial problems. While some might just lose their jobs or settle for a lower-paying job, some people find themselves in deeper financial holes and eventually file for bankruptcy. This may have a great impact on your life, especially if you still have your studies to worry about. Some students may even lose important privileges because of bankruptcy, including grants and other support for their studies. One question you may ask is if you can still get a Pell grant even if you are in bankruptcy. This article will walk you through some of the facts that could shed light on and answer this question.
Pell grants are given by the Federal government to deserving, low-income students to support them with their education. This is monetary support that could allow students to get up to $5500 in recent years. They can use this amount to help pay their tuition and other school fees, as well as help pay other college expenses. Recipients of a Pell Grant should not be more than 24 years old and currently studying for a bachelor’s or associate’s degree. A Pell grant is given to a university, and the school will decide if you are eligible for it depending on the FAFSA or Free Application for Federal Student Aid. Pell funds are given out twice a year, even if the university does not use a semester schedule.
If you are worried that a Pell Grant won’t be given to you if you filed for bankruptcy, don’t be bothered. You can still receive the full amount of a Pell Grant since it is not based on your credit score. So yes, you can still receive Pell Grant even if you are bankrupt. If you file for personal bankruptcy if you are below 24 years old and an undergraduate student, there will be no effect on any government financial aid. You can even take out federal loans and still qualify for bankruptcy. However, if you are bankrupt, you are not eligible for private education loans since they’re greatly influenced by your credit record.
Now, if your parents are the ones who filed for bankruptcy and you feel that it will hinder you from receiving a Pell Grant, worry not because this also doesn’t affect your eligibility for the grant. As long as you fit the requirements, you are eligible for the Pell Grant, even if you are using your income information upon filing for student aid. Also, you can still apply for private education loans if you use your own information for an application.
Despite the shaky economy and the financial struggles that you might encounter, the Federal government will do its best to support your education. Not even bankruptcy can stop you from getting the degree you want. So even if you or your parents filed for bankruptcy, you can still go ahead and apply for a Pell Grant.