Loan in Active Bankruptcy
When you submit your Free Application for Federal Student Aid (FAFSA) , the U.S. Department of Education will notify our office if any of your grants are in overpayment, any loans are in default or have been discharged for a total and permanent disability, and/or you have outstanding loans while in active bankruptcy – among other things.
An active bankruptcy could affect a student’s eligibility for additional federal aid. When a FAFSA comes in that has this flag, financial aid administrators must review the loan history to see if any outstanding loans defaulted prior to the bankruptcy. Until this review is conducted, no new federal awards are offered.
Students will be contacted at their go.olemiss.edu email address if additional information is needed to complete the review.
Please contact us with any questions.