So. I Was Denied Federal Loans Due To An Old Open Collection

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wowzers
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So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:06 pm

It is from late 2003 and it's for only $200. Any chance I'll make it on appeal? On my credit report, it shows that the current collection agency grabbed it in 2005. I pulled my equifax and it shows that the negative item reported 05/2010, which must have been the inquiry from the student loan people. I thought I was being unfairly charged for cell phone service that I didn't use (cell phone companies can be shady). I guess I should have paid it, eh?

How does this type of thing usually play out? i've had two auto loans in the past 5 years and I've paid every other bill, including my undergrad loans of course, on time. My credit score is a 700~.

Am I screwed?

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trialjunky
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby trialjunky » Mon May 24, 2010 9:07 pm

yep, pretty much

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:08 pm

trialjunky wrote:yep, pretty much


Really? There's nothing I can do?

Anybody else encounter this and overcome it?

Do I basically have to wait a year after paying the collection?

Anonymous Loser
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby Anonymous Loser » Mon May 24, 2010 9:21 pm

Can you be more specific about which types of federal loans were denied, and explain exactly who "the student loan people" are?

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:24 pm

Anonymous Loser wrote:Can you be more specific about which types of federal loans were denied, and explain exactly who "the student loan people" are?


Sorry. I just filled out the online app for the grad plus loan. The student loan "folk" would be those who make the call, I guess. I am kind of shocked. Wow.

So, I filled the form out about two hours ago, got an auto deny with a "90 day plus, etc" explanation. Called their help line, was told to check my equifax report, and sure enough, it was that old collection that I've refused to pay for so long now. I was told that I can fax in my entire report and that they will review it. Wow, I wish I'd done this a few months ago. Ouch.

Mr. Pablo
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby Mr. Pablo » Mon May 24, 2010 9:26 pm

Take care of your open collection, and with a co-signer you should be fine.

ncct07
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby ncct07 » Mon May 24, 2010 9:27 pm

Did you resolve the problem with the cell phone company? If so, ask them to remove this from your credit report.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:27 pm

Mr. Pablo wrote:Take care of your open collection, and with a co-signer you should be fine.


There's no way I can get a co-signer. So maybe I'm screwed. Wow, I'm kind of shocked.

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trialjunky
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby trialjunky » Mon May 24, 2010 9:27 pm

I was told by someone on the FinAid of a law school that you need to make sure you run your credit asap and make sure there are no open accounts left because you'll be screwed. She advised that you wouldn't get access to your fed. loans and wouldn't be able to attend. She gave examples of people who had to defer and come back next year.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:29 pm

ncct07 wrote:Did you resolve the problem with the cell phone company? If so, ask them to remove this from your credit report.


I asked them years ago, they acknowledged that they may have been in error, but claimed that I would have to appeal to the collection agency that was handling the issue. I kind of let it drop. I've purchased a couple of cars, paid everything on time, etc, and I just thought it wasn't a big deal. I guess I was wrong. Wow.

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D. H2Oman
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby D. H2Oman » Mon May 24, 2010 9:30 pm

I'm pretty sure you can fix this by just paying the $200, resolving the issue and sending that info in with your review. If that 200 dollar collection is your only problem seems like a simple fix.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:31 pm

trialjunky wrote:I was told by someone on the FinAid of a law school that you need to make sure you run your credit asap and make sure there are no open accounts left because you'll be screwed. She advised that you wouldn't get access to your fed. loans and wouldn't be able to attend. She gave examples of people who had to defer and come back next year.


When did they tell you that? I fear that I am now SOL. I just didn't see it coming and I am just now facing this. Hmm. I should have researched this.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:33 pm

D. H2Oman wrote:I'm pretty sure you can fix this by just paying the $200, resolving the issue and sending that info in with your review. If that 200 dollar collection is your only problem seems like a simple fix.


The woman I spoke to on the phone a bit over an hour ago said that might be an option. If I can show proof of payment, I may be cool. But yeah, literally everything else on my credit report is great.

ncct07
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby ncct07 » Mon May 24, 2010 9:35 pm

Call them...be persistent....tell them this issue is screwing with your educational loans and you need it removed from your credit report asap. Email their CEO, Customer Service VP....anyone you have to to get this done. Don't take no for an answer.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:39 pm

ncct07 wrote:Call them...be persistent....tell them this issue is screwing with your educational loans and you need it removed from your credit report asap. Email their CEO, Customer Service VP....anyone you have to to get this done. Don't take no for an answer.


Should I call AT&T, the collection agency, or both? Once I've paid it tomorrow, I plan to call the collection agency as often as is necessary in order to generate a new credit report ASAP. What else should I do?

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lostjake
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby lostjake » Mon May 24, 2010 9:41 pm

I wouldn't pay the full amont to the collections people. If you owe 200 offer them half, they'll probably take it. Don't tell them what situation you're in or they'll bend you over.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 9:45 pm

lostjake wrote:I wouldn't pay the full amont to the collections people. If you owe 200 offer them half, they'll probably take it. Don't tell them what situation you're in or they'll bend you over.


Hmm. Maybe I can get the item updated as paid more promptly though if I pay the full 200. Maybe not.

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lostjake
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby lostjake » Mon May 24, 2010 9:46 pm

With the way the wheel turns in a collections place you'll be lucky if its off your report in two months.

03121202698008
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby 03121202698008 » Mon May 24, 2010 9:50 pm

lostjake wrote:I wouldn't pay the full amont to the collections people. If you owe 200 offer them half, they'll probably take it. Don't tell them what situation you're in or they'll bend you over.


Um, just pay the $200. Settling is annotated differently and will impact your credit score. It's not worth the $100 you will save.

03121202698008
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby 03121202698008 » Mon May 24, 2010 9:51 pm

lostjake wrote:With the way the wheel turns in a collections place you'll be lucky if its off your report in two months.


It doesn't need to be off the report as he wasn't denied for a score. Proof of payment should suffice to remove the block.

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lostjake
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby lostjake » Mon May 24, 2010 9:54 pm

You can also appeal? The OP doesn't have a credit score problem, he has an out standing bill that went to collections problem. The collections people probably bought his loan for $2. I just hate to see people get screwed like that.

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beesknees
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby beesknees » Mon May 24, 2010 9:56 pm

According to Michigan's financial aid talk at their ASW, she said that as far as federal loans that are credit-based (Grad Plus) it only took a one time snap shot of your credit and if everything was cleared at that point, then you'd be approved. So pay the collection agency. AT&T already sold the debt, so they don't have anything to do with it anymore. Then you can appeal the credit decision and you should be able to qualify because its checking your credit for negative items, like an unpaid debt, not necessarily a high credit score.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 10:00 pm

beesknees wrote:According to Michigan's financial aid talk at their ASW, she said that as far as federal loans that are credit-based (Grad Plus) it only took a one time snap shot of your credit and if everything was cleared at that point, then you'd be approved. So pay the collection agency. AT&T already sold the debt, so they don't have anything to do with it anymore. Then you can appeal the credit decision and you should be able to qualify because its checking your credit for negative items, like an unpaid debt, not necessarily a high credit score.


Well, I already applied so my one time snap shot may have been taken, and I could be sunk. Or do they look again? I'm a bit confused now. The collection was originally filed in '03, but then refiled by a different company in '05.

wowzers
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby wowzers » Mon May 24, 2010 10:02 pm

blhoward2 wrote:
lostjake wrote:With the way the wheel turns in a collections place you'll be lucky if its off your report in two months.


It doesn't need to be off the report as he wasn't denied for a score. Proof of payment should suffice to remove the block.


I think the woman at the disbursement call center alluded to this, but I can't get my hopes up until I'm cleared for the loans.

tasteofred
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Re: So. I Was Denied Federal Loans Due To An Old Open Collection

Postby tasteofred » Mon May 24, 2010 10:06 pm

Ouch. I have no advice but, to hack the thread.. does anyone know how these sorts of things will affect loans if everything is paid? I have thousands in medical bills that will be paid in full by the time law school rolls around (hopefully I'll get the companies to remove them), but should I expect to get denied anyway?

crap :(




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