I also posted the following under the Bankruptcy forum but thought I may get more replies here:

Hello. This is my first topic and I wonder if this has been posted yet. I would really appreciate ANY feedback because I am really desperate. This might take awhile to explain so bear with me please.

This October will make 4 years that my Chapter 7 bankruptcy went through. I started college after losing my job and had no way of paying off a gigantic amount of credit card debt. I was able to get my subsidized and unsubsidzed loans with no problem.

Fast forward four years and I decide that I want to go to physical therapy school after a lot of hard work and getting accepted to some reputable schools. It seemed like everything was great until I got to PT school. I received a letter in the mail from Direct Loans my first week stating they were denying my Grad PLUS loan because of my Chapter 7 bankruptcy and I could not get a co-signer. I embarrassingly had to leave all of my classmates and I was absolutely devastated!

So after over 4 years of taking out loans for my undergrad and getting perfect grades for PT school, I am now waiting tables again. I just can't give up on this. I started doing some digging and I found out that all of these PT schools in Michigan require that you go through Direct Loans for your Grad PLUS loan. I looked at PT schools like San Francisco State and they allow you to choose from a list of lenders. I tried a pre-approval through Wells Fargo and Chase and was denied immediately.

This brings me to my final and most importan point one. I finally tried Citibank for my Grad PLUS pre-approval and I was approved! I called their customer service and they couldn't give me a reason as to why but would only say that the underwriter approved the amount and it wasn't a fluke.

I really don't know if I should pursue applying to out-of-state PT schools based on one lender (Citibank) that pre-approved my Grad PLUS. Could they change their mind once I get to PT school? That would be terrible if I moved out of state and had to leave PT school again. Has anyone else had a similar experience? I am trying a pre-approval again through Citibank for another out-of-state school to see if I get approved again. Is there something special about Citibank?

Please help me with any insight because I really cannot give up on my dream of being a physical therapist just because I made a poor choice 4 years ago.

You should contact the financial aid offices at the in-state schools directly for information. It's possible they can make an exception to their normal lender preferences.

What I'm puzzled about is why you need a Grad PLUS loan. Have you maxed out on your Stafford loans? You're still eligible for Stafford loans in grad school, and I think you would actually be able to get more for health professional school.

Thank you for the reply. I tried with the in-state school and their financial aid office was no help. I noticed on Citbank's website that they will not allow you to use their lending institution for the PT schools in my state. I have already withdrawn and moved back to my home city.

I need the Grad PLUS loan because PT school is so expensive that graduate subsidized/unsubsidized loans won't even cover the cost of tuition anymore. I also applied for many scholarships but nothing helped.

Today I found out that Citibank approved me again for 3 more out-of-state schools for a Grad PLUS loan. I called them again today to see what the deal was. The person I talked to knew more this time. She said that they have less stringent rules that other lenders. They would have denied it if it were a private loan. The person at Citibank assured me that it was approved and the loan would be mine if they could verify my enrollment (which I am not yet). Sallie Mae told me they would've approved me for the Grad PLUS next October when it was 5 years on the bankruptcy filing.

I am now pursuing applying to out-of-state physical therapy schools for next year based on what Citibank has said. They told me they would approve it again and I even have a letter here from them stating my credit was approved. I don't think 4 different Grad PLUS approvals from them is a fluke.