Grad Plus loans & issue on credit report

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blerg
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Grad Plus loans & issue on credit report

Postby blerg » Sun Mar 07, 2010 9:09 pm

As I'm about to start applying for loans, etc I checked my credit and found a delinquent account (medical). It's for less than $200 and it is 5 years old. I am 99.99% sure it was paid. I have NEVER been contacted by collections (and it would be VERY easy to find me). I called them and they can't find any record of contacting me, even though they confirmed all of my contact information. I called the hospital and they have the bill as paid, but it's not the same amount.

I'm more than happy to pay the $200 to not have this issue, but will that make me eligible for Grad PLUS loans (as the account is not currently delinquent?)

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im_blue
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Re: Grad Plus loans & issue on credit report

Postby im_blue » Sun Mar 07, 2010 9:36 pm

File a dispute with the credit bureaus, and I believe the creditor has 30 days to respond with proof that the debt is still owed, after which it will be removed from your credit report.

Miracle
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Re: Grad Plus loans & issue on credit report

Postby Miracle » Sun Mar 07, 2010 9:56 pm

Everyone was delinquent at some point on something, so I don't believe it will be a problem. As long as you are not delinquent now, it shouldn't be a problem

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blerg
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Re: Grad Plus loans & issue on credit report

Postby blerg » Sun Mar 07, 2010 10:13 pm

Thanks to both of you! I'll call the credit agencies in the morning.

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OperaSoprano
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Re: Grad Plus loans & issue on credit report

Postby OperaSoprano » Sun Mar 07, 2010 10:17 pm

Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.

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blerg
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Re: Grad Plus loans & issue on credit report

Postby blerg » Sun Mar 07, 2010 10:21 pm

OperaSoprano wrote:Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.


I'd really rather not have it come to that. I'd only want to ask my parents and if something happened to me and I wasn't able to work, loans would be too much for them.

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OperaSoprano
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Re: Grad Plus loans & issue on credit report

Postby OperaSoprano » Sun Mar 07, 2010 10:33 pm

blerg wrote:
OperaSoprano wrote:Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.


I'd really rather not have it come to that. I'd only want to ask my parents and if something happened to me and I wasn't able to work, loans would be too much for them.


It's not ideal, but it's something you can do in case you are declined. Having a guarantor definitely does not imply that you intend to make that person pay the loans off for you. If you are unable to repay them you can get a deferral, and in cases of total and permanent disability (not that this is likely to happen or anything) people have successfully had student loans forgiven in bankruptcy.

Miracle
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Re: Grad Plus loans & issue on credit report

Postby Miracle » Mon Mar 08, 2010 12:16 am

OperaSoprano wrote:Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.


Absolutely agree! :wink:

I think we all had previous "issues", however I think there is huge difference between someone being delinquent in the past, and someone defaulting on their loan. In short, I don't think you will have a problem.

Also, you really can't call the credit bureaus, you will have to "write them"!

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im_blue
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Re: Grad Plus loans & issue on credit report

Postby im_blue » Mon Mar 08, 2010 12:25 am

blerg wrote:Thanks to both of you! I'll call the credit agencies in the morning.

You can get your free credit reports from here (LinkRemoved) and then file a dispute online, or write some letters.

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Re: Grad Plus loans & issue on credit report

Postby too old for this sh* » Mon Mar 08, 2010 9:25 am

im_blue wrote:File a dispute with the credit bureaus, and I believe the creditor has 30 days to respond with proof that the debt is still owed, after which it will be removed from your credit report.


It isn't quite that simple. Disputes through the bureaus need to be done hand-in-hand with a dispute to the data furnisher in order to be most effective, but even then, it is not a guarantee that the dispute will be successful. The threshhold to continue reporting is relatively low.

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Re: Grad Plus loans & issue on credit report

Postby too old for this sh* » Mon Mar 08, 2010 9:29 am

While waiting on the reports and learning about State and federal laws related to credit reporting, you might also want to contact your medical provider to inquire (since they are likely NOT the entity that has furnished the data to the bureaus).

You also want to become familiar with a concept known as PFD (pay for deletion) in the event that you cannot get your provider to recall the claim from the third-party entity.

Just as there are boards dedicated to law school and related issues, so to are their boards associated with credit repair and its nuances. Probably the best one in terms of traffic AND content is credit boards dot com.

utswdukie80
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Re: Grad Plus loans & issue on credit report

Postby utswdukie80 » Mon Mar 08, 2010 9:33 am

OP, first thing you want to do is find out the statute of limitations in the state where this happened. Some states (e.g. Texas) have a 4 year statute of limitations so you may be able to get it removed without paying the $200. If the statute of limitations hasn't expired, you have a couple other options, you can send them a debt verification letter or a pay-to-delete letter. Whichever you choose, send the letter via certified, return receipt (for record-keeping purpose) and ask that they respond in writing. Do everything through writing so you have records. This way if you pay and they do not remove it from your credit report(s), you have documentation to show the loan companies that it's been paid. hth

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Re: Grad Plus loans & issue on credit report

Postby too old for this sh* » Mon Mar 08, 2010 12:27 pm

utswdukie80 wrote:OP, first thing you want to do is find out the statute of limitations in the state where this happened. Some states (e.g. Texas) have a 4 year statute of limitations so you may be able to get it removed without paying the $200. If the statute of limitations hasn't expired, you have a couple other options, you can send them a debt verification letter or a pay-to-delete letter. Whichever you choose, send the letter via certified, return receipt (for record-keeping purpose) and ask that they respond in writing. Do everything through writing so you have records. This way if you pay and they do not remove it from your credit report(s), you have documentation to show the loan companies that it's been paid. hth


There are two distinct limitations periods that come into play with credit- the first is the federal limitation on length of time something may be reported and the second is the length of time litigation may be commenced within without the Defendant having the Affirmative (and often absolute) defense of limitations. Simply exceeding litigation SOL does not mean it has to be removed from a credit report...

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chicagolaw2013
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Re: Grad Plus loans & issue on credit report

Postby chicagolaw2013 » Mon Mar 08, 2010 5:19 pm

Interested in this as well:

Is it only grad plus loans that are based on credit, or is it all federal loans i.e. Stafford/Perkins/etc.?

14yearplan
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Re: Grad Plus loans & issue on credit report

Postby 14yearplan » Tue Mar 09, 2010 12:32 pm

OperaSoprano wrote:Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.


Was the interest rate affected whatsoever by your credit score? The SallieMae site states that both credit histories are taken into account, but I am interested to know if you received the best interest rate available with a perfect cosigner.

Thanks in advance.

14yearplan
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Re: Grad Plus loans & issue on credit report

Postby 14yearplan » Tue Mar 09, 2010 12:38 pm

chicagolaw2013 wrote:Interested in this as well:

Is it only grad plus loans that are based on credit, or is it all federal loans i.e. Stafford/Perkins/etc.?


Federal guaranteed loans up to I believe $20,500 are not based on credit.

fyi: There is a new thread with a fin aid specialist answering questions, might want to take a look...

Financial Aid Counselor Taking Questions:
http://www.top-law-schools.com/forums/viewtopic.php?f=15&t=109971&start=50

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cougarlive
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Re: Grad Plus loans & issue on credit report

Postby cougarlive » Tue Mar 09, 2010 12:43 pm

OperaSoprano wrote:
blerg wrote:
OperaSoprano wrote:Even if you are, you can get a co-signer. I was ineligible for grad PLUS loans, and found out this charming fact during orientation week. (My lender was not going to tell me.) A family member put her flawless credit on the line so I could be here. I don't think you should have a problem, but this will be your backup option.


I'd really rather not have it come to that. I'd only want to ask my parents and if something happened to me and I wasn't able to work, loans would be too much for them.


It's not ideal, but it's something you can do in case you are declined. Having a guarantor definitely does not imply that you intend to make that person pay the loans off for you. If you are unable to repay them you can get a deferral, and in cases of total and permanent disability (not that this is likely to happen or anything) people have successfully had student loans forgiven in bankruptcy.



I'm not usually one to be disagreeable on TLS, but I would STRONGLY encourage you to NOT put someone else on the line as a cosigner--remember, unforeseen problems are just that, unforeseen. I've heard too many stories of people cosigning for others thinking they are doing the person they love a favor, only to have the original debtor default and have it strain the relationship, and put the cosigner in a deeper hole than the original debtor. Listen to Dave Ramsey for a week, and I'm sure you will hear a story or two of a cosigning disaster.

edited for spelling
Last edited by cougarlive on Tue Mar 09, 2010 12:52 pm, edited 2 times in total.

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cougarlive
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Re: Grad Plus loans & issue on credit report

Postby cougarlive » Tue Mar 09, 2010 12:47 pm

P.S. Another thing to consider; if you have to file a dispute with a credit reporting agency, and they are unwilling to remove the inaccurate information, you can have them include a copy of your dispute in your credit report--that way, anytime anyone pulls your credit, they will see your actual written dispute.

(In the process of doing this myself)

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Re: Grad Plus loans & issue on credit report

Postby too old for this sh* » Tue Mar 09, 2010 2:54 pm

cougarlive wrote:P.S. Another thing to consider; if you have to file a dispute with a credit reporting agency, and they are unwilling to remove the inaccurate information, you can have them include a copy of your dispute in your credit report--that way, anytime anyone pulls your credit, they will see your actual written dispute.

(In the process of doing this myself)


Actually, they will only see a notation that the account is in dispute. The letter describing the issue behind the dispute will NOT be seen by the creditor. It does nothing for score nor is it something that gets past the auto-ding on application (nor impresses anyone on manual review).

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cougarlive
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Re: Grad Plus loans & issue on credit report

Postby cougarlive » Tue Mar 09, 2010 3:23 pm

too old for this sh* wrote:
cougarlive wrote:P.S. Another thing to consider; if you have to file a dispute with a credit reporting agency, and they are unwilling to remove the inaccurate information, you can have them include a copy of your dispute in your credit report--that way, anytime anyone pulls your credit, they will see your actual written dispute.

(In the process of doing this myself)


Actually, they will only see a notation that the account is in dispute. The letter describing the issue behind the dispute will NOT be seen by the creditor. It does nothing for score nor is it something that gets past the auto-ding on application (nor impresses anyone on manual review).



Ah, I see. The information I had seen said otherwise, and it seems from your previous posts that you have more experience on this than I do. In that case, If the creditor pulling the credit report does not get a detailed explanation of the discrepancy, I would suggest providing the dispute letter to the lender yourself if you are concerned about how it will affect your loan eligibility before I would shell out $200 to get an inaccurate item off my credit report (especially since $200 is a drop in the bucket when compared to the money you will be borrowing for Law School). Good luck!




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