Can I get more unsubsidized loans if my parents filed and declared?
If a student's parent has obtained a bankruptcy discharge within the last five years, the parent is ineligible for the Federal Parent PLUS loan. (A bankruptcy discharge counts as an adverse credit history.) The student then becomes eligible for the increased unsubsidized Federal Stafford loan limits available to independent students. However, the increase is only $4,000 or $5,000 per year, which is less than the amount of the average Federal Parent PLUS loan. If the parents file in Chapter 13, they could try appealing to the college to have the mandatory payments subtracted from income, leading to a lower EFC. College financial aid administrators have mixed feelings about this and most will not make such an adjustment, although some do. Other than that, parents filing for bankruptcy has no impact on the amount of financial aid available to a college student.