Grad Plus (FYI) 90-day Forum

[Me-a Culpa]

I've read a few threads about the credit requirements of which several claim the 90 day late payment period begins from the date of the credit check. That is, if you file on June 15th, 2010, then you cannot have any delinquent account from March 15th, 2010. Anything before that, you're good.

According to the financial office I spoke with, this is incorrect. Using the example above, the check goes back to March 15th, 2005 from the date the credit check is performed. So any late payments over 90 or at 90 days is defined as adverse credit. Although you can appeal, and if everything is paid, the success of appeal is somewhat promising, but the negotiation is with the government not the school.

The way I understand the rule as it is written, I'd swear the financial services office is incorrect. From the Direct Loan Q&A sheet:

"You are considered to have an adverse credit history if you are 90 days or more delinquent on any debt or if, within 5 year of the date of the credit report, you have been the subject of a default determination, bankruptcy, blah, blah......"

Am I correct that the "within.." clause modifies the last part of the statement and not the first? If there was an "and" instead of an "or" I'd understand. To me, the "default determination" is ambiguous, but I was told it pertains to the bankruptcy, loans, etc.

While I thought my credit report was good, I just found three payments that were 90, 90, and 150 days late from 4 years ago. This was shocking since I've not checked my credit report in years. I'm challenging everything with the credit bureaus and --as advised -- offering a goodwill payment to the original creditor to have them removed, and then start with the threatening lawsuit stuff thereafter. It is a long process and bullshit.

Has anyone been denied and, then, successful upon appeal?

[poprox]

I cannot answer your question, but this is good information. I have only one adverse mark on my credit report, and it is listed as the last week of June, 2005. So if I wait until July to apply for gradplus loans I guess I will be good-to-go. I hope that's not cutting it too close, although a little late is better than being denied I guess.

[Me-a Culpa]

You should be fine, from the way it was explained to me. I'd just call and ask. It's not going to hurt you since it's fairly common.

[Renzo]

Has anyone been denied and, then, successful upon appeal?

I have something on my credit report that is bogus, but I haven't been successful in getting it removed yet. Every time I apply the refuse me, I appeal, and they approve it. It's annoying to do every year, but not anymore than an annoyance. As long as you are currently not overdue on any accounts, and don't have any charge-offs, you should be OK.

[spaceinvader3]

This is keeping me up at night, too.

A sort-of related question: I have missed a few credit card payments within the past two years (largely because I was using a great majority of my income to pay undergrad tuition)... There are no 90 day symbols on my credit report, but some reports list a "30 day late payment" symbol 3 months in a row without using the 90 day symbol.... should I expect this to count as 90 days late?

Honestly, I don't even remember being 90 days late... seems like it was 2 or 2.5 months at most. Wish I would have kept better records on this!

[poprox]

This is keeping me up at night, too.

A sort-of related question: I have missed a few credit card payments within the past two years (largely because I was using a great majority of my income to pay undergrad tuition)... There are no 90 day symbols on my credit report, but some reports list a "30 day late payment" symbol 3 months in a row without using the 90 day symbol.... should I expect this to count as 90 days late?

Honestly, I don't even remember being 90 days late... seems like it was 2 or 2.5 months at most. Wish I would have kept better records on this!

No, unless it explicitly says 90 days late, it doesn't count as a 90 day late payment. You're fine. Also, I hate credit reports the bad mark on mine is bogus too, chargeoff for $50, yeah 50 freakin dollars and I've never been able to get it removed. Oh well, at this point I've given up as it will drop off in 2 years, before I'm looking to buy a house or new car or anything major.

[kickincane21]

Ok, so my credit is horrible. Was unemployed for a while and went to collections on a few credit cards. Over the past month or so I have "Settled" all of them though for a smaller amount, considered paid in full.

I'm stressing though because I received a few scholarships at schools but even with those and my $20,500 Stafford I still fall about $10-30,000 short of total expenses depending on the school I choose.

How and when can I find out for sure if I am going to qualify for Grad Plus? Who can I contact? Obviously with my horrible credit and no co-signors I can't get a private loan either or if I do it will have a super high rate. Any thoughts??

I'm scared its going to get to July and if i don't qualify I'm going to have to defer to next year and take a year to repair my credit.

[Renzo]

Ok, so my credit is horrible. Was unemployed for a while and went to collections on a few credit cards. Over the past month or so I have "Settled" all of them though for a smaller amount, considered paid in full.

I'm stressing though because I received a few scholarships at schools but even with those and my $20,500 Stafford I still fall about $10-30,000 short of total expenses depending on the school I choose.

How and when can I find out for sure if I am going to qualify for Grad Plus? Who can I contact? Obviously with my horrible credit and no co-signors I can't get a private loan either or if I do it will have a super high rate. Any thoughts??

I'm scared its going to get to July and if i don't qualify I'm going to have to defer to next year and take a year to repair my credit.

Call the federal loan origination center. They'll be able to either approve or disapprove you.