Financial Aid and Scholarship Services will need to complete a review of your Bankruptcy Status with the National Student Loan Data System (NSLDS) in order to evaluate your financial aid eligibility. This item holds the awarding and disbursement of financial aid if it is listed on your To Do list on My ASU.
The Bankruptcy Status Review is requested in order to verify information with NSLDS based on your Free Application for Federal Student Aid (FAFSA).
Financial Aid and Scholarship Services will need to confirm with NSLDS that your Federal Student Aid (FSA) or grant overpayment was listed as defaulted and is not currently in an active bankruptcy status. Students with an FSA loan or grant overpayment that has been discharged in bankruptcy remain eligible for FSA loans, as long as the loans were not in default prior to the bankruptcy.
If you have a defaulted FSA loan or grant overpayment in an active bankruptcy claim, you are not eligible for further FSA funds unless you provide the Financial Aid and Scholarship Services office with documentation from the holder of the debt stating that the debt is dischargeable.
If you have a non-defaulted FSA loan in an active bankruptcy claim, so that collection of the loan is stayed, (not being collected upon by debt collectors) you are eligible for aid as long as you have no loans in default, including the stayed loan.
- Financial Aid and Scholarship Services will determine your eligibility for financial aid based on the status of your bankruptcy situation.
- If you have a defaulted federal student loan or grant overpayment in an active bankruptcy claim, and your debt is dischargable, please submit a letter to Financial Aid and Scholarship Services from the holder of the debt explaining that the debit is dischargable.