While bankruptcy is never one’s life goals, the fact is it happens. Job loss, medical expenses, divorce, and life’s other financial twists and turns can lead folks who never imagined doing so to file for bankruptcy protection. Bankruptcy filings have been steadily on the rise over the past century, especially since the 1980s, with close to a million consumers seeking bankruptcy protection in 2014. With the massive financial investment that comes with college, it is no surprise that as a college finance educator, I often get questions from parents and students about bankruptcy’s effect on college financial aid. Here are the 3 most common questions I receive about bankruptcy and financial aid:
