The Truth About Grad Plus Loans: a guide

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
aham2005
Posts: 19
Joined: Mon Apr 04, 2011 12:28 pm

Re: The Truth About Grad Plus Loans: a guide

Postby aham2005 » Tue May 10, 2011 7:30 pm

swc65 wrote:
aham2005 wrote:I think I will setup a payment arrangement with the collections agency for a big debt on my credit report. Hopefully this works for me. Thanks for the info.



When are you starting school? If it is this fall, setup the agreement and then get a letter for the collector stating your account is current. This way, if the credit reporting companies don't get the update before your loan is processed you can bring the letter to the appeals process.



I will be starting Law School this Fall. I will contact the collections agency this month.

User avatar
DocHawkeye
Posts: 640
Joined: Fri Oct 29, 2010 11:22 am

Re: The Truth About Grad Plus Loans: a guide

Postby DocHawkeye » Tue May 10, 2011 7:37 pm

I am working through it all right now. The Direct Loans people seem pretty decent and helpful so far. They've been very clear in what they want.

Jeffro
Posts: 163
Joined: Wed Nov 24, 2010 11:41 pm

Re: The Truth About Grad Plus Loans: a guide

Postby Jeffro » Tue May 10, 2011 9:47 pm

Is Equifax 100% the only credit bureau report used for Grad PLUS loan purposes? I saw that stated in the OP and just want to confirm.

User avatar
DocHawkeye
Posts: 640
Joined: Fri Oct 29, 2010 11:22 am

Re: The Truth About Grad Plus Loans: a guide

Postby DocHawkeye » Tue May 10, 2011 11:19 pm

Jeffro wrote:Is Equifax 100% the only credit bureau report used for Grad PLUS loan purposes? I saw that stated in the OP and just want to confirm.


I called Direct Loans on Monday to appeal the intial credit decision and they appeal specialist (or whatever she's called) specifically asked for a copy of my Equifax credit report.

User avatar
aaaaaah
Posts: 301
Joined: Wed Jan 26, 2011 3:20 pm

Re: The Truth About Grad Plus Loans: a guide

Postby aaaaaah » Wed May 11, 2011 8:58 am

Derekj032 wrote:
swc65 wrote:
Golden wrote:Quick question all, does this credit check involve closed negative accounts or just current delinquent accounts



If the closed negative account is a charge-off; it will hurt you.


It didn't hurt me. All they cared about was active account, collection, late payments etc. . . If the account is charged off it is closed and they don't look at it.


I haven't been approved yet, but I can confirm that this is exactly what a Direct Loans rep told me earlier this week.

User avatar
DocHawkeye
Posts: 640
Joined: Fri Oct 29, 2010 11:22 am

Re: The Truth About Grad Plus Loans: a guide

Postby DocHawkeye » Wed May 11, 2011 5:49 pm

I submitted my credit report this morning and within a couple of hours I was informed that my appeal was granted and I had been approved for the loan. Now I can afford to go to law school (if my wife gets a job). The whole process was pretty easy overall.

SamHunt
Posts: 1
Joined: Wed May 11, 2011 11:25 pm

Re: The Truth About Grad Plus Loans: a guide

Postby SamHunt » Wed May 11, 2011 11:27 pm

What if I can't get a co-signer and I have no income? Can I still get a PLUS loan?

User avatar
DocHawkeye
Posts: 640
Joined: Fri Oct 29, 2010 11:22 am

Re: The Truth About Grad Plus Loans: a guide

Postby DocHawkeye » Wed May 11, 2011 11:50 pm

SamHunt wrote:What if I can't get a co-signer and I have no income? Can I still get a PLUS loan?


Debt to income isn't a factor so no income shouldn't be a problem (I didn't report any income on my application). You don't need a cosigner is you meet the credit criteria which are pretty generous.

oopspowsurprise
Posts: 23
Joined: Mon Apr 11, 2011 1:11 pm

Re: The Truth About Grad Plus Loans: a guide

Postby oopspowsurprise » Sun May 15, 2011 3:13 am

thanks for this thread

set up a payment plan for my small credit card debt, every other negative notice on my account is disputed. I had some questionable things and disputed all of them on there. I won't know when my loan decision will be, probably a month from now, but I figure I will be fine.

Thanks, OP

User avatar
aaaaaah
Posts: 301
Joined: Wed Jan 26, 2011 3:20 pm

Re: The Truth About Grad Plus Loans: a guide

Postby aaaaaah » Fri May 20, 2011 4:39 pm

Derekj032 wrote:They do not care about collection accounts or anything as long as you are making payments. If you have a bunch of unpaid debt and you can’t find a cosigner all you need to do is contact the collection agency or creditor and set up a payment plan. Make sure you get this plan in writing and get receipts for anything you pay. Even if you are paying $10 per month on 25k, it doesn’t matter; they just want to see some kind of payment arrangement in place. It does not appear that they care about charge-offs, these are very negative credit report items but since these are closed accounts they don't matter, at least this was the case for me.


Do you know what kind of documentation they require? I'm having a HELL of a time getting anything in writing from my debt collector, despite having made several payments. Feeling like I may be screwed. :evil:

Thanks again for this info. I'm going to call Direct Loans myself when I have some time from work to be on the phone, but in the meantime I'm wondering what others have experienced.

AmiraAlexandria
Posts: 3
Joined: Mon May 23, 2011 3:23 am

Re: The Truth About Grad Plus Loans: a guide

Postby AmiraAlexandria » Mon May 23, 2011 3:26 am

Hi. Thanks for the info. I have no credit. Will this effect my getting approved for a Grad Plus Loan. Also, I read somewhere if you don't get approved you can be offered an option to get an endorser, which is someone who will agree to pay in the chance the student doesn't pay the loan? Also, if a cosigner/endorser is needed how good does their credit have to be?

User avatar
NCtoDC
Posts: 542
Joined: Sun Aug 01, 2010 11:48 pm

Re: The Truth About Grad Plus Loans: a guide

Postby NCtoDC » Mon May 23, 2011 6:59 pm

AmiraAlexandria wrote:Hi. Thanks for the info. I have no credit. Will this effect my getting approved for a Grad Plus Loan. Also, I read somewhere if you don't get approved you can be offered an option to get an endorser, which is someone who will agree to pay in the chance the student doesn't pay the loan? Also, if a cosigner/endorser is needed how good does their credit have to be?


If by no credit you mean you've never held a credit card or paid on a loan before then you should be fine. The cosigner has to have as good of credit as you would need to qualify on your own. So, no defaults on loans, no outstanding collections activity.

Derekj032
Posts: 35
Joined: Sun Jan 02, 2011 2:45 pm

Re: The Truth About Grad Plus Loans: a guide

Postby Derekj032 » Thu Jun 02, 2011 11:43 am

aaaaaah wrote:
Derekj032 wrote:They do not care about collection accounts or anything as long as you are making payments. If you have a bunch of unpaid debt and you can’t find a cosigner all you need to do is contact the collection agency or creditor and set up a payment plan. Make sure you get this plan in writing and get receipts for anything you pay. Even if you are paying $10 per month on 25k, it doesn’t matter; they just want to see some kind of payment arrangement in place. It does not appear that they care about charge-offs, these are very negative credit report items but since these are closed accounts they don't matter, at least this was the case for me.


Do you know what kind of documentation they require? I'm having a HELL of a time getting anything in writing from my debt collector, despite having made several payments. Feeling like I may be screwed. :evil:

Thanks again for this info. I'm going to call Direct Loans myself when I have some time from work to be on the phone, but in the meantime I'm wondering what others have experienced.



Sorry, for such a delayed response but I have been really busy. I was able to get a letter from a collection agency stating that the debt had been paid. You just need to call them and let them know you need a copy of the settlement or the payment plan and they should send it to you. I had to call a couple times because of incompetence but it was fairly straight forward. If you are making payment on an account you should be getting a receipt each month in the mail if not you need to contact the collection agency and find out why. Lastly, because of the ignorant wording on my paid settlement letter I was required to email the direct loans people a copy of my checking account statement showing the payment. I just blacked out everything accept that specific payment and I was approved very soon after.

If they won't fax or send a letter immediately threaten to stop payment and report all previous payments as being fraudulent.

mcleod13
Posts: 2
Joined: Thu Jun 02, 2011 12:48 pm

Re: The Truth About Grad Plus Loans: a guide

Postby mcleod13 » Thu Jun 02, 2011 1:05 pm

I was denied a Grad Plus loan this past Tuesday. I think I was declined because of a collection account on my credit report that was already paid. It was still showing on my credit report as being 180 days delinquent. I say I think because the Direct Loans office said that they based their decision on what was reported by CSC. CSC reports to Equifax. CSC would not tell me what was showing up unless I provided them specific account details. I have been approved before and this negative account was the ONLY new thing on there. I got a copy of all three credit reports and it was the only one that I could see that had anything to do with being past due. All of the other "Negative" accounts said "paid as agrees" or closed.

I initiated my appeal by calling in and I faxed everything in within 20 minutes of being informed I was declined. I was not told to fax in a copy of my credit report. I faxed in a cover letter and a letter from the company saying that the account was paid in full. I was not told to provide any explanation or anything.

I haven't heard anything back from the direct loan office yet. I am seriously starting to get stressed because the loan is for the summer semester and it starts in two weeks. I also have a family to support.

Did I do everything correct?

wojo96
Posts: 46
Joined: Wed Mar 09, 2011 11:51 am

Re: The Truth About Grad Plus Loans: a guide

Postby wojo96 » Thu Jun 02, 2011 1:09 pm

Tag.

cupcake.
Posts: 9
Joined: Mon Jun 06, 2011 11:36 pm

Re: The Truth About Grad Plus Loans: a guide

Postby cupcake. » Wed Jun 08, 2011 12:47 am

This is AMAZING! I just printed out that post and am looking forward to this helping me in the Fall...

mcleod13
Posts: 2
Joined: Thu Jun 02, 2011 12:48 pm

Re: The Truth About Grad Plus Loans: a guide

Postby mcleod13 » Wed Jun 08, 2011 9:44 am

Just an update on my situation. I sent in a letter from the creditor stating I was paid in full and a cover letter on Tuesday. They did not request a copy of my credit report and I received a phone call on Friday at 4 stating that I had been approved.

NJLawGirl520
Posts: 11
Joined: Wed Dec 08, 2010 9:56 pm

Re: The Truth About Grad Plus Loans: a guide

Postby NJLawGirl520 » Fri Jun 10, 2011 7:26 pm

I applied last week and was denied because of current collection accounts showing more than 90 days.. I appealed and was told to prove that they are collection agencies (by submitting my equifax credit report) and not open accounts, which I submitted today and three hours later I was approved... I didn't even have to contact the collection agency at all..

User avatar
8675309
Posts: 91
Joined: Mon Jan 03, 2011 6:59 pm

Re: The Truth About Grad Plus Loans: a guide

Postby 8675309 » Sat Jun 11, 2011 10:58 am

So if I am understanding this correctly. As long as my credit card account is current and shows I pay on time and the one small collections bill I had from two years ago is paid off, I should be accepted?

oopspowsurprise
Posts: 23
Joined: Mon Apr 11, 2011 1:11 pm

Re: The Truth About Grad Plus Loans: a guide

Postby oopspowsurprise » Tue Jun 21, 2011 5:25 pm

Looked at my financial aid today

Got accepted for Grad Plus

Thanks so much, op

User avatar
knotoftoads
Posts: 86
Joined: Wed Oct 27, 2010 12:04 pm

Re: The Truth About Grad Plus Loans: a guide

Postby knotoftoads » Thu Jun 30, 2011 6:04 pm

When the option comes up about wheather you want a certain amount or the full amount determined by your school minus any financial award, its best to do that second option and then once money is dispersed send back what I "dont need" , correct? Or should I just try to figure the exact amount I will need now?

User avatar
NCtoDC
Posts: 542
Joined: Sun Aug 01, 2010 11:48 pm

Re: The Truth About Grad Plus Loans: a guide

Postby NCtoDC » Fri Jul 01, 2011 7:43 am

knotoftoads wrote:When the option comes up about wheather you want a certain amount or the full amount determined by your school minus any financial award, its best to do that second option and then once money is dispersed send back what I "dont need" , correct? Or should I just try to figure the exact amount I will need now?


I think it is best to take the full amount. That way you can gauge your spending habits for the first year and alter what you take for 2L and 3L. If you have extra, you can either put it back toward your loan, save it for study abroad, or put it away in case of an emergency.

oopspowsurprise
Posts: 23
Joined: Mon Apr 11, 2011 1:11 pm

Re: The Truth About Grad Plus Loans: a guide

Postby oopspowsurprise » Sat Jul 09, 2011 7:01 pm

Some other things about Grad Plus

I had first received a declined, and I set up the appeal. When I called, the person "assigned" to me did not help much and did not return my calls, just saying I needed a letter saying my debt was not 90 days past due. I told him I set up a payment plan with my debt in a message, and nothing happened. I called probably 8 times in 2 days, and finally got someone who listened that my debt was in a collection agency (I got suckered with a credit card in college). She was actually really nice, and saw that I had called that many times so she wanted to help more. Collection Agencies are basically legally restricted from having letters that you are in good standing because the point of a collection agency is that you were delinquent in the first place. I called the collection agency and they were more than willing to help since I was at least trying to make payments.

After I told the Loan Servicing that I had a collection agency debt and I have been making active payments, they immediately went and accepted me. The guide that was in the OP was really good, but just know that you have to keep calling them until they accept if you have everything fixed. BE PERSISTENT.

User avatar
homerless
Posts: 67
Joined: Wed Mar 02, 2011 4:47 am

Re: The Truth About Grad Plus Loans: a guide

Postby homerless » Thu Jul 21, 2011 3:43 am

Anybody know if a judgement is a deal killer? I had a business credit card (sole proprietorship) that tanked with the business and got a judgement on me 2 years back. In addition I got about 5 other credit cards in collection for the same business.

I already got denied, but I am thinking of taking OP's advice, and hoping I could reapply next year.

User avatar
DocHawkeye
Posts: 640
Joined: Fri Oct 29, 2010 11:22 am

Re: The Truth About Grad Plus Loans: a guide

Postby DocHawkeye » Thu Jul 21, 2011 9:51 am

homerless wrote:Anybody know if a judgement is a deal killer? I had a business credit card (sole proprietorship) that tanked with the business and got a judgement on me 2 years back. In addition I got about 5 other credit cards in collection for the same business.

I already got denied, but I am thinking of taking OP's advice, and hoping I could reapply next year.


A judgement is not a deal killer. I took out several credit cards when in college and defaulted on them. I am paying a judgement on one and have payment arrangements with the others. I got approved. The whole process, from denial to approval via appeal took less than two weeks for me. You might have time to get it done for the fall semester.




Return to “Financial Aid”

Who is online

Users browsing this forum: No registered users and 5 guests