Will this affect me getting student loans?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
JohnV
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Will this affect me getting student loans?

Postby JohnV » Wed Jun 20, 2012 11:41 am

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cinephile
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Re: Will this affect me getting studenet loans?

Postby cinephile » Wed Jun 20, 2012 11:43 am

You should also look into what having this debt in collections will mean for Character & Fitness. I seem to recall a law grad from Ohio who wasn't admitted because of default (or something like that).

JohnV
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Re: Will this affect me getting studenet loans?

Postby JohnV » Wed Jun 20, 2012 11:46 am

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AffordablePrep
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Re: Will this affect me getting studenet loans?

Postby AffordablePrep » Wed Jun 20, 2012 12:19 pm

JohnV wrote:
cinephile wrote:You should also look into what having this debt in collections will mean for Character & Fitness. I seem to recall a law grad from Ohio who wasn't admitted because of default (or something like that).


That's a little disheartening. It'd be pretty crappy to have my 2 options be: Press charges against my family or not get accepted into law school based off principle. Is there perhaps a way I could attach an explanation for the defaults?

i'm sure the logic of the law wasn't to create that scenario, but if they make an exception for you why wouldn't everybody with a supportive family say what you're saying if they're not pursuing law? "yeah, i took out the loans to support my boat fund." after all, you're not pressing charges anyway. why don't you just get them out of default?

student loans are easier to get because banks seem to think more school -> more earning, and the government pressures them to give out student loans. im sure in a decade they'll realize this policy was just mortgage crisis part 2.
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sjwest
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Re: Will this affect me getting student loans?

Postby sjwest » Wed Jun 20, 2012 12:20 pm

That's the point of the Optional Statement, no?

You'll be fine for Federal loans (20.5k yearly) as I'm pretty sure they don't do credit checks.

As for GradPLUS to cover the remaining, they DO run a credit check. As far as credit checks go, I've noticed that people generally do not ask questions. If you have a big blemish on your account, they only see that, rarely check on extenuating circumstances/identity theft, and just reject you. Less work and risk for them.

While I am not at all familiar with the process of getting credit straightened out, you DO need to do something. This WILL affect your ability to get loans. You could begin paying on the amount that has been sent to collections. That may help. Phone calls help. You may even be able to claim identity theft without pressing charges. Clearing up identity theft, from what I've heard, is a very long process. Get started now.

JohnV
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Re: Will this affect me getting studenet loans?

Postby JohnV » Wed Jun 20, 2012 12:23 pm

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AffordablePrep
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Re: Will this affect me getting studenet loans?

Postby AffordablePrep » Wed Jun 20, 2012 12:35 pm

JohnV wrote:
AffordablePrep wrote:
JohnV wrote:
cinephile wrote:You should also look into what having this debt in collections will mean for Character & Fitness. I seem to recall a law grad from Ohio who wasn't admitted because of default (or something like that).


That's a little disheartening. It'd be pretty crappy to have my 2 options be: Press charges against my family or not get accepted into law school based off principle. Is there perhaps a way I could attach an explanation for the defaults?

i'm sure the logic of the law wasn't to create that scenario, but if they make an exception for you why wouldn't everybody with a supportive family say what you're saying if they're not pursuing law? "yeah, i took out the loans to support my boat fund." after all, you're not pressing charges anyway. why don't you just get them out of default?


Well, my mother has been in and out of jail a lot lately, she also was implicated in money laundering from her ex-boss and is in a lot of trouble because of it. They've also been unemployed for a long time. Point is proving that this wasn't me and was all them wouldn't be difficult. and the only way I maintain a roof over my head is from my work and some financial assistant from my aunt.

Why don't I just get them out of default? Because I can't pay off 10k worth of debt. I can barely pay rent/utilities/food, paying off the debt is just not possible working $10 an hour. Especially not anytime in the near future which it would have to be since I'm applying in Feb. I also have to start saving up for when this wave of debt hits me which is of vital concern atm, the charged off accounts are at least damage done.

That sucks, man. I don't know what to say here. On one hand your mother seems to care about herself more than you. There's no excuse, especially if there's no addiction issues. On the other hand, she's your mom, and you don't want to hurt her. I think if she's literally using you just to help her at the expense of her future you have every right to do what's best for you.

JohnV
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Re: Will this affect me getting studenet loans?

Postby JohnV » Wed Jun 20, 2012 12:40 pm

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CanadianWolf
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Re: Will this affect me getting student loans?

Postby CanadianWolf » Wed Jun 20, 2012 12:41 pm

OP: The problem may arise after law school when applying to a state bar, but not an issue for law school admission.

Cancel your credit accounts to prevent further abuse.

Share your story with your creditors. Some may excuse the unauthorized debt if you sign an affidavit.

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IAFG
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Re: Will this affect me getting student loans?

Postby IAFG » Wed Jun 20, 2012 12:44 pm

This may sound heartless, but your mom is already fucked. What difference does slightly more fucked really make to her? Whereas crippling debt makes a big difference to you.

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MormonChristian
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Re: Will this affect me getting student loans?

Postby MormonChristian » Wed Jun 20, 2012 12:52 pm

JohnV wrote:.


Wow, that is a mess. I suggest talking to a credit counselor, some one who handles debt for a living.

luck!

JohnV
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Re: Will this affect me getting student loans?

Postby JohnV » Wed Jun 20, 2012 1:01 pm

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2012JayDee
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Re: Will this affect me getting student loans?

Postby 2012JayDee » Wed Jun 20, 2012 1:12 pm

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Sauer Grapes
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Re: Will this affect me getting student loans?

Postby Sauer Grapes » Wed Jun 20, 2012 1:18 pm

IAFG wrote:This may sound heartless, but your mom is already fucked. What difference does slightly more fucked really make to her? Whereas crippling debt makes a big difference to you.

This.

Your mom needs help and is already in trouble.

The only caveat to this is if her embezzlement case is pending, you may not want her to have a fraud conviction at the time of her embezzlement trial (or possibility thereof if she pleads or her case from fraud against you is quicker). I'm just thinking about ways you adding charges against her can hurt any other cases.

JohnV
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Re: Will this affect me getting student loans?

Postby JohnV » Wed Jun 20, 2012 1:26 pm

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Fark-o-vision
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Re: Will this affect me getting student loans?

Postby Fark-o-vision » Wed Jun 20, 2012 1:39 pm

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cinephile
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Re: Will this affect me getting student loans?

Postby cinephile » Wed Jun 20, 2012 1:44 pm

CanadianWolf wrote:OP: The problem may arise after law school when applying to a state bar, but not an issue for law school admission.


This is what I meant to say. No use going to law school if you won't be admitted to the bar. I know nothing about improving poor credit, but it looks like some others here have some advice. I'd probably still contact the state bar where you intend to practice and see if this will be a problem.

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spleenworship
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Re: Will this affect me getting student loans?

Postby spleenworship » Wed Jun 20, 2012 1:46 pm

My opinion:

You need to tell your creditors what happened and let them initiate prosecution against your folks as necessary. This is the rest of your life you are talking about. They will ruin it. Just totally ruin it, because of their irresponsibility.

Look, they are already in trouble. Most likely they are going to be in more trouble soon, because stuff like this is a snowball thing. And frankly, as mentioned above, you are helping them commit serious felonies by not reporting your victimization. SERIOUS FELONIES.

Also, as above, don't attend law school until the stuff starts getting sorted out or you most likely won't be able to pass C&F.

2012JayDee
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Re: Will this affect me getting student loans?

Postby 2012JayDee » Wed Jun 20, 2012 1:48 pm

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JohnV
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Re: Will this affect me getting student loans?

Postby JohnV » Wed Jun 20, 2012 4:37 pm

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spleenworship
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Re: Will this affect me getting student loans?

Postby spleenworship » Wed Jun 20, 2012 5:08 pm

JohnV wrote:.

1.Also I'm not applying until February anyways so I've got some time to work on this and try to fix it. I plan to talk to a lawyer and the my schools financial aid department friday (I work at the Law school in my city) to see what they think I should do.

So, questions I'd like answered if possible:
2.- Can I pay off the loans and not have it be a problem so long as the payments are made on time, regardless of how they may or may not have been used in the past? I don't understand why this would factor into the C&F unless I wasn't able to pay them or it was an official legal issue which so far it's not.
3.- Do I need to square away the 10k in adverse accounts before I apply to law school (seems bad credit will keep me from getting a loan to pay for LS)


1) Why would you apply in February? You shut out a lot of opportunities that way. Apply for schools in September if you can, early November if you have to retake.
2) The loan application and MPN clearly state that these are only to be used for tuition, books, and living expenses by the student while going to college. That means your parents comitted fraud. If you pay them off to cover up your parents' fraud, that's a crime too. If you are going to cover up for criminals committing felonies, the C&F people frown on that. And they will ask you how you got all those loans and why you didn't pay them for a while, and if you answer with a lie and they find out you not only lied bu covered up a felony, they will yank your license so fast it'll fucking catch on fire from the air friction. And they probably will find out, because the cops are already on the trail of your mom and will eventually find the student loan thing.
3) Yes you do. The best way to do so is to tell the fucking truth and turn your parents in to your creditors.

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IAFG
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Re: Will this affect me getting student loans?

Postby IAFG » Wed Jun 20, 2012 5:16 pm

I know of people's loans for LS getting held up over pas due accounts. One person owed $50 to Blockbuster and just had to pay it back. Another had a much bigger hassle. You can't get GradPlus without dealing with this shit, unfortunately.

Other posters have given you advice that, while difficult to take, is in your best interest. Covering up your parent's crime is not a good long-term solution. What are they asking you to do?

AffordablePrep
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Re: Will this affect me getting student loans?

Postby AffordablePrep » Wed Jun 20, 2012 6:12 pm

Sauer Grapes wrote:
IAFG wrote:This may sound heartless, but your mom is already fucked. What difference does slightly more fucked really make to her? Whereas crippling debt makes a big difference to you.

This.

Your mom needs help and is already in trouble.

The only caveat to this is if her embezzlement case is pending, you may not want her to have a fraud conviction at the time of her embezzlement trial (or possibility thereof if she pleads or her case from fraud against you is quicker). I'm just thinking about ways you adding charges against her can hurt any other cases.

IDK. Prison can just make it worse. A person can be fucked up psychologically, but all human beings react the same ways to being trapped just like how we all like ice cream. It would suck for her, but you wouldn't be wrong to do this. If you're religious I'd consult a religious authority (rabbi, priest, imam)

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IAFG
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Re: Will this affect me getting student loans?

Postby IAFG » Wed Jun 20, 2012 6:17 pm

AffordablePrep wrote:
Sauer Grapes wrote:
IAFG wrote:This may sound heartless, but your mom is already fucked. What difference does slightly more fucked really make to her? Whereas crippling debt makes a big difference to you.

This.

Your mom needs help and is already in trouble.

The only caveat to this is if her embezzlement case is pending, you may not want her to have a fraud conviction at the time of her embezzlement trial (or possibility thereof if she pleads or her case from fraud against you is quicker). I'm just thinking about ways you adding charges against her can hurt any other cases.

IDK. Prison can just make it worse. A person can be fucked up psychologically, but all human beings react the same ways to being trapped just like how we all like ice cream. It would suck for her, but you wouldn't be wrong to do this. If you're religious I'd consult a religious authority (rabbi, priest, imam)

This assumes she isn't already headed for prison. And that these additional crimes would push her sentence over.

JohnV
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Re: Will this affect me getting student loans?

Postby JohnV » Wed Jun 20, 2012 7:19 pm

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