Grad Plus...help! Forum

[adora]

So...my credit is not good. But I don't really have a lot of debt...just have been stupid with the little debt I do have.

These are the things I'm concerned about:

On my credit report, the section with "Two Year Payment History:"
-I have one 30-day mark from Sept. 2009. Then, a 90-day mark from March 2008. Before March 2008, there are several 60, 90, etc.

I also have three "derogatory" accounts. These are in collections...bad checks from ~6 years ago. Total, I owe less than $100.

So, this is what I'm thinking: Have all "derogatory" accounts paid off by 6/1 (probably a lot sooner, but just in case...) (and request proof that they're paid), then apply for Grad Plus loans by 7/1.

Is July 1 a good time to apply for Grad Plus loans?

And if my accounts in collections are paid off, will I have any problems getting the loans? My credit score is probably terrible...

I've done some searching and am really confused about everything I've read.

Also, is there some way to check and see if I'm eligible now, without actually applying?

Thanks!

[ram jam]

Line up a co-signer with excellent credit + decent salary. Repair your cred asap and plan as if you will not be receiving the loans.

[lewis louis]

Repair your cred asap and plan as if you will not be receiving the loans.

So don't plan on going to law school, basically.

[adora]

Line up a co-signer with excellent credit + decent salary. Repair your cred asap and plan as if you will not be receiving the loans.

Thanks.

I have been discussing it with my parents. They're not excited about the idea and I think they'd prefer not to, but if it comes down to it, they probably will cosign.

But I'd really like to do this on my own, and I'm wondering if anyone could tell me, realistically, if I'm likely to get the loans.

Thanks!

[lewis louis]

I honestly have no real idea, but i've always been told that you're likley to get the loan with adverse credit as long as its not from default on other student loans.

[ram jam]

I believe that are three things that will prevent someone from getting gradplus loans: Defaulting on a student loan, foreclosure on a home, and a felony...

Just speak with a fin aid person at the school you hope to attend. Attend a public, in-state school if at all possible, the sub and unsub staffords will cover tuition, you will have to pick up a part time job to pay living expenses... that way, you avoid grad plus alltogether

[SamSeaborn2016]

So...my credit is not good. But I don't really have a lot of debt...just have been stupid with the little debt I do have.

These are the things I'm concerned about:

On my credit report, the section with "Two Year Payment History:"
-I have one 30-day mark from Sept. 2009. Then, a 90-day mark from March 2008. Before March 2008, there are several 60, 90, etc.

I also have three "derogatory" accounts. These are in collections...bad checks from ~6 years ago. Total, I owe less than $100.

So, this is what I'm thinking: Have all "derogatory" accounts paid off by 6/1 (probably a lot sooner, but just in case...) (and request proof that they're paid), then apply for Grad Plus loans by 7/1.

Is July 1 a good time to apply for Grad Plus loans?

And if my accounts in collections are paid off, will I have any problems getting the loans? My credit score is probably terrible...

I've done some searching and am really confused about everything I've read.

Also, is there some way to check and see if I'm eligible now, without actually applying?

Thanks!

The derogs are the things to worry about. Your previous late-pays hurt your credit score but GradPlus isn't based on your actual score, just whether or not you are not in default, collections, or 90-days past due on anything. Pay off the derogs asap as it can sometimes take the reporting company up to 90 days to show the correction on your credit report.

FWIW: I've worked in lending for years.

[adora]

So...my credit is not good. But I don't really have a lot of debt...just have been stupid with the little debt I do have.

These are the things I'm concerned about:

On my credit report, the section with "Two Year Payment History:"
-I have one 30-day mark from Sept. 2009. Then, a 90-day mark from March 2008. Before March 2008, there are several 60, 90, etc.

I also have three "derogatory" accounts. These are in collections...bad checks from ~6 years ago. Total, I owe less than $100.

So, this is what I'm thinking: Have all "derogatory" accounts paid off by 6/1 (probably a lot sooner, but just in case...) (and request proof that they're paid), then apply for Grad Plus loans by 7/1.

Is July 1 a good time to apply for Grad Plus loans?

And if my accounts in collections are paid off, will I have any problems getting the loans? My credit score is probably terrible...

I've done some searching and am really confused about everything I've read.

Also, is there some way to check and see if I'm eligible now, without actually applying?

Thanks!

The derogs are the things to worry about. Your previous late-pays hurt your credit score but GradPlus isn't based on your actual score, just whether or not you are not in default, collections, or 90-days past due on anything. Pay off the derogs asap as it can sometimes take the reporting company up to 90 days to show the correction on your credit report.

FWIW: I've worked in lending for years.

Thanks! Very helpful.

I requested verification from the collections agencies. I plan on paying them as soon as I hear back.

Is July 1 a good time to apply for a Grad Plus loans, or should I do it earlier? Also, if I am rejected because of one of these derogatory reports, will I be able to appeal/reapply successfully if I offer proof that they've been paid?

[Me-a Culpa]

Okay, so this is what I was told by Fin office and confirmed by an obsessive amount of Googling. Take for what it is worth...

So...my credit is not good. But I don't really have a lot of debt...just have been stupid with the little debt I do have.

Credit scores do not matter at all. As in, loans are not decided by score; however, the score is indicative of your payment history.

On my credit report, the section with "Two Year Payment History:"
-I have one 30-day mark from Sept. 2009. Then, a 90-day mark from March 2008. Before March 2008, there are several 60, 90, etc.

None of it matters unless it's 90-days or more delinquent for the five years prior to the credit check. Due to an oversight, I have one account from 4.5 years ago that was beyond the 90-day limit; however, it is paid in full. The office said I will most likely be turned down, but upon appeal, there is a strong chance of success. But I cannot find any significant details about this process.

I also have three "derogatory" accounts. These are in collections...bad checks from ~6 years ago. Total, I owe less than $100.

These will not matter unless the collection agency reports them as delinquent as of now. Write them, explain the situation, and pay.

Also, is there some way to check and see if I'm eligible now, without actually applying?

Pull your credit report from all three agencies and look at your history, it should be obvious.

[adora]

None of it matters unless it's 90-days or more delinquent for the five years prior to the credit check. Due to an oversight, I have one account from 4.5 years ago that was beyond the 90-day limit; however, it is paid in full. The office said I will most likely be turned down, but upon appeal, there is a strong chance of success. But I cannot find any significant details about this process.

I'm a bit confused about this part. Does this mean I can't have any record of being 90 days late on a payment in the past 5 years? Or that I can't currently owe something that I'm 90+ days late on?

Not sure that question made sense...hopefully you know what I mean.

[SamSeaborn2016]

None of it matters unless it's 90-days or more delinquent for the five years prior to the credit check. Due to an oversight, I have one account from 4.5 years ago that was beyond the 90-day limit; however, it is paid in full. The office said I will most likely be turned down, but upon appeal, there is a strong chance of success. But I cannot find any significant details about this process.

I'm a bit confused about this part. Does this mean I can't have any record of being 90 days late on a payment in the past 5 years? Or that I can't currently owe something that I'm 90+ days late on?

Not sure that question made sense...hopefully you know what I mean.

You're cool as long as you arent currently 90+ days late.

To answer your other questions I would say July 1 is probably fine for applying if you haven't resolved the problems earlier than that. All the financial aid paperwork from my school says to make sure it is completed by August 1st, though.

[Me-a Culpa]

None of it matters unless it's 90-days or more delinquent for the five years prior to the credit check. Due to an oversight, I have one account from 4.5 years ago that was beyond the 90-day limit; however, it is paid in full. The office said I will most likely be turned down, but upon appeal, there is a strong chance of success. But I cannot find any significant details about this process.

I'm a bit confused about this part. Does this mean I can't have any record of being 90 days late on a payment in the past 5 years? Or that I can't currently owe something that I'm 90+ days late on?

Not sure that question made sense...hopefully you know what I mean.

From TSL I understood it as currently 90-days late, but when I asked:

"From the sheet I received from the financial aid office and correct me if I am wrong: “adverse credit history” is defined as:

1. if you are 90 or more days delinquent on any debt or
2. if, within 5 years of the date of the credit report, you have been the
a. subject of a default determination,
b. bankruptcy discharge,
c. foreclosure,
d. repossession,
e. tax lien,
f. wage garnishment, or
g. write-off of a Federal Student Aid.

Am I correct to assume that (1) is 90 days from the day of the credit check? "

Their response:

"Hello, XXXX. The 90 or more days delinquent covers any time in the previous 5 years so your past delinquency may be an issue. The default determination does refer to loans and not delinquent credit card accounts."

I've read the rule from the GradPlus explanation, and I still think it means 90-days from the day the report is submitted. But this lady says otherwise. I'll let you know in mid-May, ha.

[Me-a Culpa]

You're cool as long as you arent currently 90+ days late.

If you don't mind, did you apply and have at least one 90+ day delinquent account in the last five years? If so (and I hope), I've wasted a lot of time reading about this...

[SamSeaborn2016]

You're cool as long as you arent currently 90+ days late.

If you don't mind, did you apply and have at least one 90+ day delinquent account in the last five years? If so (and I hope), I've wasted a lot of time reading about this...

I haven't but I have been a loan officer for years and I have also worked with student financial aid offices. The other stuff you listed is the real bad news; if you have had any of those within 5 years of the application you are boned.

This little doc may help shed some light on this scary financial aid stuff.

https://studentaid.ed.gov/students/atta ... oansQA.pdf

[adora]

You're cool as long as you arent currently 90+ days late.

If you don't mind, did you apply and have at least one 90+ day delinquent account in the last five years? If so (and I hope), I've wasted a lot of time reading about this...

I haven't but I have been a loan officer for years and I have also worked with student financial aid offices. The other stuff you listed is the real bad news; if you have had any of those within 5 years of the application you are boned.

This little doc may help shed some light on this scary financial aid stuff.

https://studentaid.ed.gov/students/atta ... oansQA.pdf

Thanks...again! So that pretty much spells it out- currently 90 days past due.

This may be a dumb question, but what is a "default determination?"

[Me-a Culpa]

The doc you posted is the exact reference I used (when I asked the finance office):

"What is considered to be an adverse credit history?
You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within 5 years the date of the credit report, you have been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or writeoff of a Federal Student Aid debt (for example, a Direct Loan or Federal Stafford Loan)."

The "or" and the placement of the "within 5 years...." clause is why I question the finance office's understanding.

Like you said, "90-days" implies currently, and the within 5 years...." refers to the latter section - bankruptcy, etc. But my schools finance office replied "90 or more days delinquent covers any time in the previous 5 years" to this exact question.

Not sure why I'm obsessing about this since I had only one 90+ late payment 4 years ago. But I do want to apply without being subject to he appeal process.

Anyhow, thanks

[adora]

The doc you posted is the exact reference I used (when I asked the finance office):

"What is considered to be an adverse credit history?
You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within 5 years the date of the credit report, you have been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or writeoff of a Federal Student Aid debt (for example, a Direct Loan or Federal Stafford Loan)."

The "or" and the placement of the "within 5 years...." clause is why I question the finance office's understanding.

Like you said, "90-days" implies currently, and the within 5 years...." refers to the latter section - bankruptcy, etc. But my schools finance office replied "90 or more days delinquent covers any time in the previous 5 years" to this exact question.

Not sure why I'm obsessing about this since I had only one 90+ late payment 4 years ago. But I do want to apply without being subject to he appeal process.

Anyhow, thanks

Aah, yeah. That's really confusing...let me know what you find out.

I also just noticed that your earlier post answered my question about the default determination- loans only.

[SamSeaborn2016]

"Default determination" is not a term I've ever seen used regularly but defaulting is what leads to collections, liens and foreclosures. Each of those terms are specific to circumstances:

liens = tax defaults
foreclosures = mortgage/equity defaults
repossession = secured property (boats, cars, etc.) loan default
collections = pretty much everything else (credit cards, rental agreements, bad checks, etc...)

The Federal Student Aid Information Center is the end-all, be-all for government backed student loan questions. You can always call them to verifiy the answer to the 90-day confusion. I'm sure it only matters if you are currently 90 days late but I'm just a guy on the internet.

1-800-433-3243

[wreckem]

Let me clear some stuff up. I have no idea who you all have been talking to.

"An adverse credit history is defined as being more than 90 days late on any debt"

This means you have adverse credit if you are CURRENTLY over 90 days late on any debt, this includes accounts that are currently incollection. What this means is if you paid off a collection or you had an account that was 90 days late but you brought it current you will pass this part of the credit check.

[rulagi]

Let me clear some stuff up. I have no idea who you all have been talking to.

"An adverse credit history is defined as being more than 90 days late on any debt"

This means you have adverse credit if you are CURRENTLY over 90 days late on any debt, this includes accounts that are currently incollection. What this means is if you paid off a collection or you had an account that was 90 days late but you brought it current you will pass this part of the credit check.

+1

This thread thoroughly freaked me out, so I called the loan servicing center at the Dep of Ed, spoke with a loan officer there (read: straight from the horse's mouth) and they confirmed what wreckem stated above.

Chargeoffs aren't a big deal, nor are past delinquency as long as accounts are currently in good standing or collections have been paid off.

Basically, get your free credit report and check to see where your hurting. It definitely helps to check, I found a charge from 6 years ago. It was $69 from when I switched phone carriers and still was in collections

[Me-a Culpa]

Awesome! I suspected that she was possibly incorrect, but I figured I'd wait to post the results of my loan status.

Thanks.

[sdlaw]

Awesome! I suspected that she was possibly incorrect, but I figured I'd wait to post the results of my loan status.

Thanks.

So not to repeat but grad + does not apply to credit cards as long as I haven't defaulted on them? So if i paid a cc late a few years ago it won't be an issue?